ABSTRACT
Within the framework of this project “Perceived impact of Prudential Guidelines
on the services and performance of Commercial Banks in Nigeria”, the researcher
has attempted to reiterate the importance of prudential guidelines in helping banks
to improve on their performance. The study set out to examine its impact on bank
safety and confidence of Nigerians especially depositors among others.
The researcher employed both primary and secondary sources of data from samples
derived from the populations of selected commercial banks. The researcher adopted
the use of structured questionnaire as the main instrument of data collection. Data
were analyzed using the Chi-Square (X2) analytical technique.
Findings from the study revealed that there is increased need for bank supervision
from the regulatory bodies. The guidelines have been welcomed as a step in the
right direction as they have helped to check the mismatch between banks’ reported
and actual profits and also checked the early detection of fraud, distress and
deterioration of banks credit portfolio.
In conclusion, prudential guidelines have also helped to check non-performing
loans and ensure proper scrutiny of loan proposals and enhanced regulatory
activities in the banking industry most especially the commercial banks. Several
recommendations were made in a bid to alleviate the difficulties banks encounter in
implementation of the provision of the prudential guidelines. These include
encouragement of management effectiveness via enlightenment programe
seminars, periodic review of the guidelines to meet prevailing national and
international banking trend. It is recommended that further research be conducted
to improve on existing ones.
