ABSTRACT
A research project was carried out as an opinion survey to
determine the role of Nigerian Monetary Authorities in Bank Distress prevention
from 1990 to 2005.
A sample size of ‘68’ was arrived at using ‘204 randomly selected
staff from CBN. NDIC and First Bank of Nigeria Plc Uwani branch as the
population size.
The research works consist of five chapters, which will be
discoursed one by one.
Chapter one includes the introduction, statement of problem,
objectives of the study, the research questions, statement of hypothesis, the
significance of the study, limitations of the study and definition of
operational terms.
Chapter two is the review of related literature. This
chapter discussed the nature of Nigerian deposit insurance company, and also
discussed the causes and implications of distress on the economy the chapter
also discussed the roles which the monetary authorities play to prevent bank
distress and its effectiveness.
Chapter three which is the research methodology includes the
research design, the area of study, the population, sampling technique, the
instrument of data collection and the method of data analysis.
Chapter four of the study includes the presentation, analysis and
interpretation of data. The sixty eight (68) questionnaires which were
distributed was analysed through the use of table. The statistical
method, which is used in analyzing the result of the information, are the simple
percentage and chi-square (X2).
Chapter five of the study consists of the summary of
findings, conclusion and recommendation.
TABLE OF CONTENTS
CHAPTER ONE
1.0 Introduction
1.2 Background of the study
1.3 Objectives of the study
1.4 Research questions
1.5 Statement of hypothesis
1.6 Significance of the study
1.7 Limitation of the study
CHAPTER TWO
2.0 Review of related literature
2.1 Historical background of
the study
2.2 Meaning of bank distress
2.3 The nature of Nigeria deposit insurance company
(NDIC)
2.4 Reasons for establishing the deposit insurance
scheme in Nigeria
2.5 Establishment of central bank of Nigeria (CBN)
2.6 Functions of the central bank of Nigeria (CBN)
2.7 Recent developments in the banking sector and
bank distress
2.8 Distress defined
2.9 Causes of bank distress in Nigeria
2.10 Implications of distress on the economy
2.11 The role of the regulatory authorities in
preventing bank distress through the use of “CAMEL”
2.12 Effectiveness of distress prevention measures
2.13 Lessons and challenges of handling bank distress
CHAPTER THREE
3.0 Research methodology
3.1 Research design and
methodology
3.2 Research design
3.3 Area of study
3.4 Population
3.5 Sample and sampling technique
3.6 Instrument of data collection
3.7 Method of data presentation
3.8 Method of data analysis
CHAPTER FOUR
4.0 Presentation, analysis and interpretation of data
4.1 Questionnaire analysis
4.2 Testing of hypothesis
CHAPTER FIVE
5.0 Summary of findings, conclusion and
recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
The deteriorating condition of financial institutions particularly
banks has remained a problem of great concern to policy makers. It is now
a well know fact that there is wide spread distress in the banking system and
despite the measures recently taken by the government as well as bank
regulators and supervisors, there remain fear that the problem is not over yet
and is being suppressed and not being suppressed and not being dealt with
decisively.
Banking crisis is not limited in Nigeria, it is also present in
other parts of African, latin America, Asia, Europe and North America.
Infact, it is a development that has come to be associated in particular with
economic in which financial liberalization is being or has been implemented.
There is wide spread belief that banks occupy unique positions in
most economics, both developed and developing countries, as creators of money,
the principal depository of savings, major allocators of credit, and the
manager of the country’s payment mechanism. Consequently, the government
often deem it necessary to formulate policies, for the soundness, efficiency
and safety of the bank industry. The monetary authority has the
responsibility for the supervisor of the banking system. This
responsibility is discharged by undertaking both of site and on-set examination
of the books of the banks. The provisions among other things cover
minimum capital requirements, returns to be submitted to the CBN Central Bank
of Nigeria by banks, power of the CBN to conduct routine and special
examination and power of the CBN to revoke a bank’s license.
1.2 STATEMENT
OF THE PROBLEM
This work seeks to determine the role of Nigerian Monetary
Authorities in Bank Distress prevention from 1990 to 2005.
Distress in the Nigerian banking system is a phenomenon that must
be tackled with every amount of vigour by CBN/NDIC in order to minimize its
occurrence in the economy in this light, some possible corrective measures that
could be adopted to ameliorate the consequences of distress in the economy will
be suggested.
1.3 OBJECTIVES
OF THE STUDY
The specific objectives to the
study includes:-
1.
To identify the monetary authorities involved in bank distress prevention
between 1990 and 2005.
2.
To find out and describe the role of NDIC in bank distress prevention since
1990 to 2005.
3.
To identify the guidelines CBN provided to banks inorder to prevent distress in
the banking system 1990-2005.
4.
To identify the role of federal ministry of finance in prevention of distress
in the banking system from 1990-2005.
5.
To find out the effectiveness of distress prevention measures “CAMEL” set up by
monetary authorities between 1990-2005.
1.4 RESEARCH
QUESTIONS
1.
Do the monetary authorities have any involvement in bank distress prevention
between 1990 and 2005?
2.
Do the NDIC play any role in bank distress prevention since 1990-2005.
3.
Do the CBN provide guidelines to banks in order to prevent distress in the
banking system?
4.
Do the federal ministry of finance play any role in the prevention of distress
in the banking industry.
5.
Has the distress prevention measure “CAMEL” set up by monetary authorities
effective in distress prevention between 1990-2005.
1.5 STATEMENT
OF HYPOTHESIS
For the purpose of this study,
the following hypothesis are formulated;
Ho:
Monetary authorities emphasis on the employment of qualified and honest
professionals by banks as a way of preventing bank distress in Nigeria.
Hi:
Monetary authorities do not emphasis on the employment of qualified and honest
professionals by banks as a way of preventing bank distress in Nigeria.
Ho:
Increasing minimum capital base requirement of banks every decade by the
monetary authorities will prevent distress in the banking system.
Hi:
Increasing minimum capital base requirement of banks every decade by the
monetary authorities will not prevent distress in the banking system.
1.6 SIGNIFICANCE
OF THE STUDY
The significance of the study
is its importance to the following.
1. Government: This research will be of tremendous
use to the government and monetary authorities in handling the issues of bank
distress and to prevent its occurrence. It will also give the government
advice on strategies to embark on to improve CBN/NDIC’s roles in financing
distress in the banking sector.
2. Financial Institutions:
It will be of great relevance to financial institution particularly banks in
checking their performance based on their ability to meet the following five
bank examination rating system “CAMEL”.
3. Academic: This study
will provide data for future researchers on the subject matter.
1.7 DEFINITION
OF TERMS
1. Bank: This simply an institution, which
accepts, deposits from the public and in turn advances loans by creating
credit.
2. Central
Bank: This is a government owned bank which is
set up to help handle its transactions to coordinate and central other
banks. This is the Apex Bank.
3. Role: The part played by
somebody or something in the process of attaining a particular goal.
4. Deposit Insurance Scheme: This
is a financial guarantee to depositors particularly the small ones in the event
of bank failure.
5. Distress:
This is the suffering caused by the wart of money and other necessary things.
6. Financial
Institutions: These
are places meant for financial assistance for the survival of young businesses
such as commercial banks, trustee companies, savings and loan association.
Department | Banking and Finance |
Project ID Code | BFN0062 |
Chapters | 5 Chapters |
No of Pages | 72 pages |
Methodology | Chi Square |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
|
|
Contact Us On | +2347043069458 |