IOSR-JEF   Volume-1 ~ Issue-3

Abstract: The question of what constitutes an optimal bank capital has generated so much controversy among bank regulators and practitioners for decades. The new Basel recommendation – Basel III framework, has once again thrown up the question of what level of bank capitalization would be considered optimal to the front burner of national and international discourse. This study provide empirical evidence using selected bank performance indicators in Nigeria to show that optimal bank capital is a misnomer unless there is a sound macroeconomic environment. The study shows that performance of banks did not improve substantially after the 2005 recapitalization exercise. It was also evident from the study that Nigerian banking history has demonstrated the futility of using bank recapitalization as a regulatory tool. There is therefore a veritable ground to question the primacy and pride of place accorded to capital by regulatory authorities among the factors that enhances banking system stability. We therefore recommend that the Central Bank of Nigeria should focus their attention in promoting monetary stability and sound macroeconomic environment to enable banking business to thrive in Nigeria.

Keywords: Bank Capitalization, Macroeconomic Environment, Monetary Stability

Abstract: Coal sector is a giant and huge sector in India's economy which employs thousands and thousands of laborers in this mining sector, but they hide within them a100 years old history of oppression a story that has never been documented or given much importance in independent India .Yet it is this oppression that has led to labor unrest and resulted in some of the gruesome stories between these unorganized laborers and the mine managers. Unlike the organized sector, in this sector we deal with laborers who have not acquired a high profile, tasted the benefits that can be gained from organization or derived the advantages flowing from high visibility. The large portions of labor force working in the coal mines of India plays vital role in any scheme of industrialization and the development of the country in general. India has many coal mines which employs about sixty lakh of unorganized laborers either directly or indirectly. The wages that the unorganized laborers get are meager and this is clearly not enough to satisfy the growing aspirations of a community that is utterly marginalized and feels alienated. It is this socio-economic struggle that goes out of control .At times there are labor troubles in mines.

Abstract: The rapid rise in food prices has been a burden on the poor in developing countries. In many countries such as in Bangladesh, food price inflation is higher than aggregate inflation and contributing to underlying inflationary pressures. Losing the purchasing power and increasing the cost of production indicates the high rate of inflation. Sometimes high inflation has adverse impact on growth through a variety of channels. It will increase uncertainty in investment and withdrawal of saving for consumption support. In south Asia- Bangladesh, Pakistan has experienced double digit inflation rate. However inflation and growth rate called real GDP growth rate have positive and negative relationship depending on situation. Due to supply gap for natural disaster cause rapid growth of inflation rate mainly contributed by food price and regression analysis reflect a positive relationship with inflation and GDP. Inflation fluctuates all the time because of the fluctuation of the money supply. But in recent years, we came to know that international affairs are influencing to increase the inflation rate. So M3 expansion and global price hike also contrite to inflationary pressure. Consistent budget deficit and exchange rate deteriorate the economic growth which directly relates with inflation and also can increase unemployment as a result of high inflation due o increased production cost resources may be reduced. So authority may work on inflation control for the clear future signals.

Keywords: Annual Average CPI (Consumer price index) inflation, Food Inflation, GDP (Gross Domestic Production), Inflationary pressure, money supply.

Abstract: The term micro finance refers to the practice of providing financial services such as micro credit, micro savings or micro insurance to poor people to alleviate poverty. Small loans are given to start the business of their own. These loans generate employment and income. Income from these businesses started with micro credit enables the borrowers to enjoy better housing, health care and education. When they earn additional income, they get hope for a better future. The global repayment of micro loan is higher than 95 percentages, which allows micro finance institutions to relend these funds to even more clients. By giving a hand up, micro finance enables one to break the cycle of poverty with in a single generation itself. From this study, it can be concluded that the women empowerment is greatly improved through the assistance of microfinance. It is also noted that the Self Help Groups (SHGs) can provide the expected benefits to the rural women folk if training is given on soil conservation, social forestry, dairy development and other allied occupations like horticulture, livestock, rearing, poultry keeping and fisheries.

Keywords: Micro finance; Women empowerment; Self help groups (SHGs); poverty.

Abstract: The study investigates impact of monetary policy on Nigeria's economic growth between 1970 and 2005. It adopts cointegration and error correction model. The gross domestic product is used as proxy for growth while bank rate, bank credit, monetary policy rate and exchange rate are used as monetary policy variables i.e the independent variables. The result shows that all the variables are integration of order one that is I(1). The cointegration result establishes a long run relationship between growth and monetary policy variables. The long run relationship further indicates that only the exchange rate has significant impact on the growth of Nigeria. However, the error correction model indicates that all the variables can jointly dictate the pace of Nigeria growth in terms maintain economic stability. It is recommended that policy makers to pay more attentions to monetary variables in their attempt to maintain economic stability.

Key words: Monetary policy, Growth, Long run relationship, economic stability. JEL Classification: E52 and E59