1.1. Background to the Study
The banking industry in Nigeria have little ammunition with to deal with the COVID-19 pandemic. Government of Nigeria is forced to balance the health of their citizens with economic stability and their own debt. After more than a decade of unprecedented economic growth, the world is facing another global economic recession. In the past week, Nigerian government have been introducing aid programmes to ease the economic pressure brought about by the COVID-19 outbreak and the inevitable economic downturn that will follow.
Controlling the spread of influenza to reduce the effects of infection on a population is an important mandate of public health sector and the government of any nation. The Nigeria private sector and the banking Industry get affected.Coronavirus disease 2019 (COVID-19) is a respiratory illness that can spread from person to person. The virus that causes COVID-19 is a novel coronavirus that was first identified during an investigation into an outbreak in Wahan China. COVID-19 is spreading from person to person in China and limited spread among close contacts has been detected in some countries outside China including Nigeria. There is presently no vaccine to protect against COVID-19 and there is no specific antiviral treatment for COVID-19.
Although banks are not being hit by the novel coronavirus disease as directly as other institutions, they are at the forefront of public attention. Banks sit at the heart of the economy and provide funding to corporate and individuals. Their stability is crucial to keep the system up and running. Individuals are being placed on quarantine or lockdown, as a result, the ability to carry out banking transactions is limited. Also business loans, especially to small and medium enterprises are at risk due to forced shutdown.
Generally, banks have started waiving fees, granting loan payment holidays due to directives from government. However there is need to reassess the risk profile of their customers. If the COVID-19 crisis lasts longer, this option will increasingly become untenable. Unless the government steps in and forces a moratorium on debt else banks will begin to struggle.
This study, therefore, is posed to assess the impact of Infectious epidemic on the banking industry a case study of corona virus disease.
1.2. Statement of the Research Problem
The human health state is considered the most critical to any country survival of a truism that healthy population bring about the desired goals. The Coronavirus disease 2019 (COVID-19) discovered in 2019 spread from person to person. The first case of COVID-19 in Sub-Saharan Africa has been confirmed in Nigeria.
From evidence available to us, COVID-19 is presently in Nigeria,
The patient who first brought it to Nigeria is an Italian citizen who works in Nigeria and flew into the commercial city of Lagos from Milan on 25 February 2020. (BBC News, 2020).
Globally, more than 800,000 people in nearly 150 countries have been infected. Over 45,000 have died, the vast majority in China’s Hubei province, Italy and Spain. In Nigeria 2 death has been recorded and over 150 infected.
In Nigeria, the ability to contain this virus also lie within the help of the populace in complying with the directives of the government. It is against this background that the researcher considered the study of the impact of infectious epidemic on the banking Industry a case study of corona virus disease.
1.3. Objectives of the study
The aim of this study was to investigatethe impact of infectious epidemic on the banking Industry a case study of corona virus disease. The specific objectives are to:
1.4. Research Questions
This study will be guided by the following research questions:
1.5 Research Hypothesis
The study is guided by the following hypothesis:
H0
: There is no significant relationship between coronavirus disease and banking industry.
1.6. Significance of the Study
The study will enable relevant agencies concerned with eradicating COVID-19 in Nigeria to know the implications of coronavirus disease on the banking industry. Empirically, this study is carried out to investigate the impact of infectious epidemic on the banking Industry. This study will be of utmost importance to investors, government and the researchers because it will provide policy recommendations to the various Nigeria stakeholders taking adequate measures in the banking industry for rapid capacity investment. The changing character of the banking industry has affected the industry in recent times and will push studies on the impact of infectious epidemic on the banking Industry to new evidence(s). It will contribute to existing literature on the subject matter. This study will be of benefit to;
The Academia: members of the academia will find the study relevant as it will also form basis for further research and a reference tool for academic works.
Government: this study will reveal to the government happenings in the industry. Formulation and implementation of policies based on this findings would ensure development in the industry.
Investors: this study shall also be valuable to the investors especially those who may have research interest as it shall guide their private investment decisions.
1.7. Scope of the Study
This study is intended to examine the impact of infectious epidemic on the banking Industry a case study of corona virus disease with particular emphasis on First bank of Nigeria in 2020.The study covers first bank of Nigeria across the country.
1.8. Operational Definition of Terms
The following terms have been defined operationally.
1.9. Organization of the Study
This study is divided into five chapters. Chapter one is introduction which consists of the background to the study, statement of problem, research questions, research hypotheses, objectives of the study, the significance of the study, the scope and limitations of the study and finally the organization of the study. Chapter two deals with the literature review which consists of the conceptual literature, theoretical literature, empirical literature, theoretical framework. Chapter three gives the research methodology including research design, population of study, sample size, sampling technique, method of data collection, instrument of data analysis, method of data analysis, validity/reliability of instrument. Chapter four is presentation and analysis of data, discussion of findings. Chapter five gives the summary, conclusion and recommendations.