Merchant Banking
COURSE CONTENT
INTRODUCTION
This course is designed for Banking and Finance students with adequate knowledge of the financial market. The course should be able to achieve the following objectives: i) Exposing the students to the historical development of merchant banking in Nigeria and abroad; Equip the students with the knowledge of the roles and problems confronting merchant banks in Nigeria; Provide the students with an insight into the dualistic nature of the Nigerian financial arena.
1. NATURE AND CONCEPT OF MERCHANT BANKING • Historical development of merchant banking in Nigeria • Meaning of merchant banking • Number and branches of merchant banks in Nigeria • Capital structure of merchant banks in Nigeria
2. FUNCTIONS AND PROBLEMS OF MERCHANT BANKS • Banking function • Corporate function • Issuing House • Funds and portfolio management • Equipment leasing • Treasury and financial services • Role and problems confronting merchant banks
3. REGULATORY PROVISIONS FOR THE OPERATION OF MERCHANT BANKS IN NIGERIA • Relevant laws • Directives of the Central Bank of Nigeria
4. DIFFERENCES AND SIMILARITIES BETWEEN MERCHANT BANKS AND COMMERCIAL BANKS
5. MERCHANT BANK AND OTHER BANK • Development banking in Nigeria • Evolution of development banking in Nigeria • The Nigerian Industrial Development Bank (NIDB) • The Nigerian Bank for Commerce and Industries (NBCI) • The Nigerian Agricultural and Co-operative Bank (NACB) • The Federal Mortgage Bank of Nigeria (FMBN)
6. MERCHANT BANK SERVICES Corporate finance services Issuing house service Project financing Equity financing Advisory services
7. BANKING SERVICES Loans and advances Bankers acceptances Commercial acceptances Status report and enquiry
8. LOAN SYNDICATION Nature and concept of loan syndication The placement memorandum Invitation to participating banks Syndication meetings Processing draw down request Management of syndicate banks Services of merchant banks — Deposits, acceptances, foreign exchange services
9. EQUIPMENT LEASING Nature and concept of leasing Types of lease Internal revenue service requirement for leases Advantages of lease financing Disadvantages of lease financing Determination of lease payment
10. MONEY MARKET SERVICES Introduction Types of money market Instruments traded in the money markets
11. TREASURY MANAGEMENT Nature and concept of the treasury Responsibilities of the treasury Treasury instruments and markets
12. DOCUMENTARY LETTER OF CREDITS Mode of payments Mail transfers Urgent transfers drafts The payment as a message Banks and the documents of international trade Documentary collections and documentary credits
RECOMMENDED TEXTS
INVESTMENT AND MERCHANT BANKING IN NIGERIA BY CHRISTOPHER O. UDOKA Ph.D
BANKING OPERATIONS BY J. HENDERSON
CONTINUOUS ASSESSMENT = 30 MARKS
EXAMINATION TOTAL 70 MARKS
This course is designed for Banking and Finance students with adequate knowledge of the financial market. The course should be able to achieve the following objectives: i) Exposing the students to the historical development of merchant banking in Nigeria and abroad; Equip the students with the knowledge of the roles and problems confronting merchant banks in Nigeria; Provide the students with an insight into the dualistic nature of the Nigerian financial arena.
1. NATURE AND CONCEPT OF MERCHANT BANKING • Historical development of merchant banking in Nigeria • Meaning of merchant banking • Number and branches of merchant banks in Nigeria • Capital structure of merchant banks in Nigeria
2. FUNCTIONS AND PROBLEMS OF MERCHANT BANKS • Banking function • Corporate function • Issuing House • Funds and portfolio management • Equipment leasing • Treasury and financial services • Role and problems confronting merchant banks
3. REGULATORY PROVISIONS FOR THE OPERATION OF MERCHANT BANKS IN NIGERIA • Relevant laws • Directives of the Central Bank of Nigeria
4. DIFFERENCES AND SIMILARITIES BETWEEN MERCHANT BANKS AND COMMERCIAL BANKS
5. MERCHANT BANK AND OTHER BANK • Development banking in Nigeria • Evolution of development banking in Nigeria • The Nigerian Industrial Development Bank (NIDB) • The Nigerian Bank for Commerce and Industries (NBCI) • The Nigerian Agricultural and Co-operative Bank (NACB) • The Federal Mortgage Bank of Nigeria (FMBN)
6. MERCHANT BANK SERVICES Corporate finance services Issuing house service Project financing Equity financing Advisory services
7. BANKING SERVICES Loans and advances Bankers acceptances Commercial acceptances Status report and enquiry
8. LOAN SYNDICATION Nature and concept of loan syndication The placement memorandum Invitation to participating banks Syndication meetings Processing draw down request Management of syndicate banks Services of merchant banks — Deposits, acceptances, foreign exchange services
9. EQUIPMENT LEASING Nature and concept of leasing Types of lease Internal revenue service requirement for leases Advantages of lease financing Disadvantages of lease financing Determination of lease payment
10. MONEY MARKET SERVICES Introduction Types of money market Instruments traded in the money markets
11. TREASURY MANAGEMENT Nature and concept of the treasury Responsibilities of the treasury Treasury instruments and markets
12. DOCUMENTARY LETTER OF CREDITS Mode of payments Mail transfers Urgent transfers drafts The payment as a message Banks and the documents of international trade Documentary collections and documentary credits
RECOMMENDED TEXTS
INVESTMENT AND MERCHANT BANKING IN NIGERIA BY CHRISTOPHER O. UDOKA Ph.D
BANKING OPERATIONS BY J. HENDERSON
CONTINUOUS ASSESSMENT = 30 MARKS
EXAMINATION TOTAL 70 MARKS