Abstract:
This study is prompted by observed controversies that greeted the introduction of Universal Banking System into the Nigeria Financial System in Principle (in 2000) and in practice (in 2001). Views and counter views expressed by the different financial institutions in the system prompted the researcher to investigate the preparedness of Commercial Banks in Nigeria to operate the system. To obtain the information necessary for the conclusion reached on the problem relevant literatures were reviewed on the meaning of Universal Banking, the background and origin of the system in the Nigerian Financial System, comparative analysis of the situation in some other parts, of the world and measures of preparedness of Commercial Banks for the System. This is complemented with the field study of the situation in 17 selected Commercial Banks in Enugu State using structured questionnaire on senior and management staff of commercial banks and oral interviews of officials, academics and other stakeholders in the system. Five hypotheses comprising one main hypothesis and four sub hypotheses were postulated to elucidate information on the problem. Findings confirm the researcher's postulation that Commercial Banks in Nigeria, and in fact the financial system and the economy are prepared and indeed have high prospects for Universal Banking Business, if necessary steps are appropriately taken. Finally, the researcher recommends necessary precautions that should be taken to tap the full fruit expected from the system and suggestions for further study on the subject.
