29 Dec

BANKING 1.8 NEGOTIABLE INSTRUMENTS

NEGOTIABLE INSTRUMENTS. Are simply documents capable of discharging debts. Historically trade was by barter it was later replaced with money. As foreign territories interacted, trade and commerce began to boom. Negotiable instruments were issued for commercial expediency and convenience. Inter-state transportation of gold and silver coins was unattractive therefore, negotiable instruments were utilised especially where […]

29 Dec

BANKING 1.7 FAILED BANKS ETC.

FAILED BANKS AND BANK EXAMINATION. There are various provisions in the BOFIA, CBN Act, NDIC act and other enactments which seek to regulate the banking sector and forestall bank failure by making provisions for minimum capital requirement, registration, licencing, reserve ratio and so on. When can we say a bank has failed? The Failed Banks […]

29 Dec

BANKING 1.6 THE BANKS AND OTHER FINANCIAL INSTITUTIONS ACT (BRIEFLY EXAMINED)

THE BANKS AND OTHER FINANCIAL INSTITUTIONS ACT (BOFIA). :: An unregulated banking sector is prone to failure. This was the feature of the early 1950s. In addition to the supervisory role played by the CBN, the BOFIA contains certain strict provisions which regulate banking practice in Nigeria. For the sake of clarity, the various Sections […]

29 Dec

BANKING 1.5 THE CENTRAL BANK OF NIGERIA

THE CBN. :: Initially, the West African Currency Board was established to issue currency in the region of West Africa. However, because the WACB could not control or manage the money stock, the Central Bank of Nigeria was established under Section 1 of the Central Bank of Nigeria Ordinance 1958 following the recommendation of Mr […]

29 Dec

BANKING 1.4 REGULATION OF FOREIGN EXCHANGE

REGULATION OF FOREIGN EXCHANGE. Currency, being a manifestation of a state’s sovereignty differs from one state to another. Foreign exchange entails conversion of one currency to another based on the current value (exchange rate). In simple terms; foreign exchange entails the buying and selling of currencies. HOW DID FOREIGN EXCHANGE COME ABOUT IN NIGERIA? Foreign […]

29 Dec

BANKING 1.3 DISHONOUR OF CHEQUES

WHEN CAN A CHEQUE/WITHDRAWAL ORDER BE DISHONOURED? Insufficient Funds in the customer’s account to meet the demand-In Osawaye V National Bank for Nigeria and in the case of Savannah Bank V Salami, the Supreme Court noted that where the amount standing in the customer’s account is not up to the amount sought to be withdrawn, […]

29 Dec

BANKING 1.2 BANKER CUSTOMER RELATIONSHIP

BANKER AND CUSTOMER RELATIONSHIP. DEFINITION OF A BANKER AND CUSTOMER. Who Is A Banker? :: The layman defines a banker as a person that works in a bank. This is CERTAINLY NOT the legal position. :: In Akanle V Reginam, the court noted that “banker” refers to the company licenced to carry on banking business. […]

29 Dec

BANKING 1.1 GENERAL INTRODUCTION.

DEFINITION OF A BANK. :: There is no all-encompassing definition of a bank. However, it is necessary to embark upon the herculean task of defining a bank considering the various statutory rights, duties and obligations attached to a bank. for example the obligation to be duly registered and licenced to carry out banking operation imposed […]