AN APPRAISAL OF THE REGULATION OF SOME SCHEDULED BANKS UNDER NIGERIAN LAW
The rationale for the establishment of scheduled or development banks generally derives from the existence of “gaps” in the financial system and the need to plug such gaps. These gaps have been occasioned by two main factors. The first is the tradition and inadequacy of the commercial banking arrangements. Commerical banks service rather than finance industry and agriculture, traditionally finance working capital and rarely if ever, concern themselves directly with the provision of long term capital. The Central Bank traditionally controls and regulates the financial sytern. It does not indulge in commerical banking nor in the finance of long term projects. The provision of medium and long term capital is thus neglected. It is against this backdrop that scheduled banks have been established. These are creatures of government with specific objectives. Four of the scheduled Banks have been studied from the following common indexes:- historical background, structure and organization, regulation, achievments, problems and procedure for winding up. These banks are the Federal Mortgage Bank of Nigeria. The Nigeiran Agricultural And Co-operative Bank Limited, the Nigerian Industrial Development Bank Limited and the Nigeiran Bank For Commerce And Industry. This work begins with a background analysis to the problem in chapter one. The objective of the research and its scope as well as the method used in getting the materials constitute this chapter. The research is basically hinged on secondary data. Books Journals, Statutes and Decrees are consulted. X This work focuses essentially on the regulation of some scheduled banks. Before 1977, scheduled Banks were exempted from the regime of regulation applicable to Banks and other financial institutions. This was so because they were carrying out peculiar banking services ie development banking. Under the current dispensation, the scheduled Banks are regulated by the same law that regulates all banks and other Financial Institutions in Nigeria. Finally, the work in chapter six summarizes the research work, affirms the relevance of scheduled Banks to the Nigerian economy, identifies problems and makes recommendations for their sustenance.