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CHAPTER ONE INTRODUCTION The banking sector of Nigeria in the past could be divided into two groups-the elite foreign banks which concentrated on the rich of the society and the local banks mainly owned by the state.The latter served the interest of most working class people. The elite banks were Barclays Bank (formerly called the Colonial Bank) and Standard Chartered Bank (formerly,Bank of British West Africa). The second group of banks with state ownership include Nigeria Commercial bank (GCB), Social Security Bank (now SG-SSB), Agricultural Development Bank (ADB), and the National Investment Bank (NIB). The clients of the localy owned banks found business transations very frustration espercally during salary payments, for example, it was not uncommon observing long winding queus extending serveral meters outside the banking hall. The few foreign banks on the other hand, apply high charges and the initial deposit to open accounts was very high. The average Nigerian could therefore not open accounts with these banks. Choices were very few and competition was virtually absent in the sector. The Bank of Nigeria (BOG) with the support of government undertook a process of financial sector restructuring which transformed the financial sector. Some of the initiatives that led this transformation is the movement to universal banking, the adoption of an open licensing system and the modernization of the payments systems. According to Acquah (2006) the governor of the BOG,?universal banking involves the removal of restrictions on banking activities which allow banks to choose the type of banking services that they would like to offer in line with their capital, risk appetite and their business orientation?(2006). Universal banking creates room f

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