ABSTRACT
This study is based on x –
raying financial distress in the banking sector, the apex transaction boot of
our economy.
It is however interesting to
note that this study not only would expose also would examine the various
mechanism that have been put in place, mostly and especially in the sector, for
the handling of thesis may harm in our banking industry and economy.
In this context, this study is
expected to help other financial house of the Nigeria economy or the managerial
cadre and government enforced discipline and strict measure to culprits and
defaulters in the industry and this would enhance proper operation and healthy
growth of the industry and economy.
Secondary data instrument are
mainly use by the researcher. The findings were made based on the data
collected.
It was discovered that poor
financial planning weak control and supervising measures, lack of accounting
database and government adverse policies or reforms were main cause of
financial distress etc.
The findings also revealed that
the high rate of unqualified personal and indiscipline contributed greatly to
this concept.
In light of above findings, the
researcher made some necessary and useful recommendation that if government and
financial banking management adhere to would help to arrest and foster rapid
growth and increase profit maximization to the banking sector and boost our
economic and economy position.
TABLE OF CONTENT
CHAPER ONE
Introduction
1.1
Statement of the problem
1.2
Reasons of the study
1.3
Significance of the study
1.4
Definition of terms
CHAPTER TWO
Review of related literature
2.1
Distress in the Nigeria banking industry
2.2
What constitute banks
distress
2.3
The causes of banks distress
2.4
How to avert future occurrences of distress
CHAPTER THREE
Hypothesis methodology sources
of data and limitation of study
3.1
Hypothesis
3.2
Methodology of study
3.3
Sources of data
3.4
Limitation of study
CHAPTER FOUR
Presentation of data, analysis
of data and discussion of results
4.1
Data presentation
4.2
Analysis of data
4.3
Discussion of the result of the analysis
CHAPTER FIVE
Summary, conclusion and
recommendation
5.1
Summary
5.2
Conclusion
5.3
Recommendation
5.4
Suggestion for further studies
Bibliography
CHAPTER ONE
INTRODUCTION
1.1 STATEMENT
OF THE PROBLEM
The Nigeria banking industry,
the issue of financial misappropriation and management is no more stories but
some thing that is condemned by the society.
Stress in the financial sector mainly banking has led to a great loss and
economic degeneration due to lack of proper guideline and set standard in the
industry (Ebihodaghe (1994) to this effect, the economy has suffered
drastically in the recent time, this problem has cause and created so many
hardship to the bank and their shareholders, Bellow (1993) most of the
distressed bank in Nigeria suffered from fraud, lack of organization and
managerial powers and proficiency. This also contributed significantly to the
liquidation of some banks. The big question is how fine will our banking
industry grow with the rate of the phenomenon” distress?
The problem of this study now centers on, how to prevent distress in Nigeria
banking industry so that the economy can grow and develop
1.2 RATIONALE
OF THE STUDY
Talking about the reason of the
study it has to do with bank operation and the failure distress of the sector
and also it will be necessary find out the causes of bank failure and
suggesting ways of averting future occurrence with acceptable and efficient strategies.
1.3 SIGNIFICANCE
OF THE STUDY
Significance of the study is to
tell how benefit it is go to be. Those who will benefit from this study include
Bank
It will help the banks to operate with
profitability; credibility and playing the role of banking intermediation
effectively and efficiently.
Industry
However it help the industries in putting
them operation whether daily or number distribution of events in the
institution (bank) and how to prevent them future occurrence
1.4 BACKGROUND
OF THE STUDY
Banks are regarded as an
indispensable element in the development and growth of any economy. The
success or otherwise of the banking sector is a parameter on which
economic activities are measured. It is against this background that it is
stated that a healthy banking system is a sign of good health of the entire
economy. Distress has far reaching consequences on the economy of the country
some of the implications are discussed here under:
v The situation lead to deposit run this is the
withdrawal of deposit by customers from the distress banks. It affects
adversely the liquidity and earning capacity of the banks and consequently
resulting to decline in availability of ingestible funds in the economy
v Secondly, bank distress lead to increase in
interest rates as depositors ask for higher rates of return for perceived
higher chances of bank failure and consequent risk of financial loss.
v Bank distress cause unemployment through
retrenchment of workers in the distressed banks. This has adverse consequences
of the retrench staff. It leads to fall in aggregate demand and consequently a
reduction in the product win level.
v Bank distress in the long run may degenerate
into bank failure and loss of depositor funds. The maximum amount refundable to
each account holder under the NDIC cover for failed banks is #50.000.00
irrespective of the value of deposit.
v Further, it leads to decline in foreign
investment in the country. Due to fear of uncertain investment climate come
foreign investors may prefer to close their account with the distressed banks
and transfer their funds to other countries with more stable investment
atmosphere.
1.5 DEFINITION
OF TERMS
In this study, the definition
of terms could go through the topic to how the meaning of the topic of the
project “ distress in the banking sector how to avert future occurrence, audit,
prevent, banks, distress, economy, guideline, liquidity, portfolio, practice,
commercial banks, community banks, merchant bank and
deregulation.
Audit
Official check and analysis of account by
an expert
Prevent
A measure aimed to prevent or turn away a
consequence of an activity
Banks
Is an institution where keeping of money
and leading on issue of credit and loans is obtained
Distress
An array activity, action or event that
brings great sorrow or pain
Economy
Community system of using its resource to
produce wealth, state of a country prosperity
Guideline
A set of advice to follow low down
procedure of
rules
Liquidity
The measure or mean of being to change
asset into cash (liquid cash)
Portfolio
This can be defined in financial as
collection of share distribution in term of loan and advance, on sectorally
even
Practice
This is putting operation whether
daily or routine distribution of event in the instruction (banks)
Merchant bank
Are financial institution,
established by law to provide and to engage in wholesale banking, medium and
long term financing equipment and long term financing equipment leasing debt.
Factoring: investment management etc.
Community banks
This is self sustaining financial
institution owned and managed by a community or group of communities for the
purpose of providing credit deposit and other financial services
Commercial bank
Is institution who collect or
institution establish by law to perform some function which include deposit,
acceptance, agency service, bailment, funding, transfer and executorships
function.
Department | Banking and Finance |
Project ID Code | BFN0049 |
Chapters | 5 Chapters |
No of Pages | 35 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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