Banking Distress in Nigeria Causes and Implications

Banking Distress in Nigeria Causes and Implications

Project / Seminar Material
Reference ID: PS-11870-TM

DEDICATION

This research material titled “Banking Distress in Nigeria Causes and Implications” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Banking and Finance (BF), Book Authors and Profound Scholars of existing or related project material on “Banking Distress in Nigeria Causes and Implications” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES

CHAPTER ONE

INTRODUCTION

    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • ⋮
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    …
    …

    Proposal

    BANKING DISTRESS: Is a condition when the Banking system as a whole has negative capital and current profit are insufficient to cover losses to such an extent, that the banking system is unable to generate internally positive capital.

    However, Banking distress has been a talk of the town, and it has became so rampant that even the customers to banks are after and so conscious of bank distress, which may or may not occur. Bank distress has been a cankerworm which has eaten deep to the banking stem, which leads people to death, frustration, sickness, denotion, poverty even madness over night. Let take the case study of the former (ACB and Savanah Bank) these two has led some people to poverty and some to untimely death, some ran madness over night, some children dropped out of school some family can’t find food to eat, even some business closed down/folded up.

    Moreover, every problem has a solution, there are some measure that could be taken to eradicate this cankerworm that has eaten deep to banking system, one of the measure and the most important is from the foundation before any bank should start in existence, they should make sure that it is a registered bank with every statistic ready for the operation another important one is capable management have to be very strong enough. Technological know how, trained expert, another important point is SITING i.e where the bank will be built, weather insane opposite or a place that is at the SITE. You consider also the target, and the kind of business that people around engaged on.

    Apparently, there should be won for further training of the staffs, and a good conducts especially from the staffs has to the exhibited on how to welcome and handle customer because there is an idiage which says “one good turn deserves another”. If all these things are put in place, bank distress must be eradicately.

    Finally, recommendation for the staffs to be travelly outside the country for a course has to be in place, in order for them to get a new ideas and innovation that can help in development of the banks, which leads to civilization. Embezzlement of bank money has to disappear and fraud of any kind has also to be disappeared completely.

    Banking Distress in Nigeria Causes and Implications

    CHAPTER ONE

    Introduction

    1.1 Background Of The Study

    The issue of bank distress has been a problem which financial institutions suffer must. The era of all for free banking in Nigeria brought which can be traced as of (1892) when banking started in Nigeria gave room for the establishment of many banks because there was little or no laws guiding banking business. Because the was no law or supervisions on establishment of banks, many banks were established without adequate capital requirement.

    Morestill, the era of Structural Adjustment Programme (SAP) and deregulation brought another face in the banking industry which made many banks to sprang up in Nigeria. This made many more banks to be established in our country. But, as more laws guiding banking industries were established some of these mushroom banks were affected. Such laws were regulated by some bodies and each bodies include, BOFIA, CAMA 1990, NDIC etc. banking and other financial institution Act, Company and Allied matter Act, Nigerian Deposit Insurance Corporation and all these bodies regulating the activity of banking in Nigeria.

    However, bank distress became a problem in the country when these regulating bodies started monitoring the activities of these banks. Infact, so many of them as a result of not meeting the banking CAMEL, they became distress. CAMEL here refers to, capital Adequacy, Assets Quality management competency, Earning Strength and Liquidity sufficiency.

    Infact, by 1954, vitually all the indigenous banks that sprary up during the free-for-all banking period got distressed and finally failed. In this period only three of them, the National Bank of Nigeria, the Agbonmagbe bank (Presently WEMA Bank) and the African continental Bank survived. Infact they were able to survive because they got assistance from state government

    1.2 Statement Of Problem

    Having seen all the measures adopted by the government to avoid bank distress by establishing regulating bodies and laws to avoid distress. Many banks still get distress. The question now is, why do banks still get distress after all these guideline established by these regulatory bodies.

    TOPIC: Hence, it is hoped that it will serve as a basis for further academic adventures. The research work is expected to be of immense help to foreign investors in the country. The relief should be stricked to manufacturing companies like those in the pharmacetical food, processing, building materials, banks etc. The banking should be more flexible to allows such expenses as deductible in computing banking profit of such Nigeria. To the enterprenuers who want to establish bank in stale of their choice, they could be attracted to depressed area if more governors, banking incentives are made available for business established in such areas.

    1.3 Objective Of Study

    For the purpose of this research, the researcher has decided to know the following as regards to the topic “The Banking distress in Nigeria, cause and Implications.

    Such objectives are:

    1. To investigate what is banking distress
    2. To inquire when it started in Nigeria
    3. To ascertain the causes
    4. To identify the implications in the economy
    5. To proffer the possible solution to the problem

    1.4 Significance Of The Study

    The findings of the research works together with its conclusion and recommendation will be of importance in the following regard to future researchers.

    Although, this work represents a significant attempts, it is not exhaustible at the:

    Time Factors:

    Time is a major constraining factors. This is obvious, since the researcher work hard to be completed with a specified period time, other academic programme.

    Lack Of Some Statistical Data:

    All this statistical data needed for the study could not be gotten by the researcher in local government, under study and using other data from other local government are irrelevant.

    Lack Of Adequate Knowledge

    Lack of knowledge is another problem the researcher encountered on the course of this study.

    …

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

    Summary Headlines for Banking Distress in Nigeria Causes and Implications