ABSTRACT
This research work in
failed banker is with a view to examine its impact one the Nigerian
economy. The statement of problem in this research work aimed at finding
if there are reductions in the flow of inventible resources that could be
channeled to the productive sector of the economy.
Section II showed how
the researcher made a random selection of 100 respondents from 3 selection
banks arrived at a sample size of 50 which implies that 50 questionnaires were
distributed and all were returned.
This is followed by
identifying the forms and causes of bank failure in Nigeria banks in section
III; this section was what the researcher was able to do which other researcher
failed to do.
Section IV the major
finding was summed up in just one sentence which is “Bank failure has almost
crippled Nigerian economy and this implies that bank failure retards the
economy’s rate of capital formations and ultimately the face of economic growth
concluding with section V the researcher suggests that further researcher
should research on the role of monetary authorities in bank failure prevention.
TABLE OF CONTENT
CHAPTER ONE
1.0 Introduction
1.1
Background of the study
1.2
Statement of the problem
1.3
Objective of the study
1.4
Research questions
1.5
Research hypothesis
1.6
Scope of the study
1.7
Limitation of the study
1.8
Definition of terms
References
CHAPTER TWO (Literature Review)
2.0 Review of related
literature
2.1
Definition of failed banks (via bank failures)
2.2
Review of the evolving patterns of bank structure and failure
2.3
Extent of bank failure in Nigeria
2.4
The impact of bank failure on Nigeria economy
2.5
Factors behind bank failure in Nigeria
2.6
Efforts to address bank failure in Nigeria
References
CHAPTER
THREE (Research Methodology)
3.0
Research design and methodology
3.1
Research design
3.2
Area of study
3.3
Population
3.4
Sample and sampling procedure
3.5
Instrument of data collection
3.6
Methods of data presentation
3.7
Methods of data analysis
References
CHAPTER FOUR (Date Presentation)
4.0
Date presentation and analysis
4.1
Date presentation
4.2
Data analysis (test of hypotheses )
Reference
CHAPTER FIVE (Conclusion)
Finding conclusions and
recommendation
5.1
Summary
5.2
Conclusions
5.3
Recommendation
Bibliography
CHAPTER ONE
INTRODUCTIN
1.1 BACKGROUND
OF THE STUDY
The importance of the
banking section in any economy is derived from its roles of financial
intermediation provision of an efficient payment system and facilitating the
implantation of monetary policies. In intermediation, banks mobilize
saving from the surplus limits of the economy and channel these funds to the
deficit units particularly private business enterprises for the purpose of
expanding their productive capacity. In operating the payment mechanism,
the banking systems liabilities serve as the medium of exchange. In the
execution of monetary policies, bank serve as agents through which there
policies are implemented. Hence, an efficient and effective banking
sector is essential not only for the promotion of efficient intermediation but
also for the protection of depositors encouragement of healthy competition
maintenance of confidence in, and stability of the system and protection
against systematic risk and collapse. For the banking in industry of any
economy to achieve there objective the industry must be stable safe and sound.
In Nigeria, there has
been a rapid increase in the number of bank failure and the magnitude of the
problem has reached an unprecedented level.
Currently, the
problem has assumed a generalized dimension thereby making it an issue of
concern to the government, the regulatory authorities the bankers the general
public and the international financial institutions such as the world banks and
international monetary fund (IMF).
The purpose of this
research work is to evaluate the consequences of banks failure on the Nigerian
economy. Bank failure means different things to different people.
To some people, a bank
fails only when it ceases operation even if it has not been declared liquidated
officially. In a wider bank which is unable to meet its obligations to
its stakeholder as at when due arising form weakness in its financial
operational and managerial conclusion which could has rendered it either
illiquid and/or in solve (CBN/NDIC, 1995)
The relevant stakeholder
to a bank will include the depositors, the owners of the bank and the economy
at large. From the foregoing, it will be clear that failed banks will not
only include the liquidated banks but also the problem banks that have
exhibited some form of weakness in their financial operational and managerial
conditions which have rendered them either illiquid and/or
insolvent
1.2 STATEMENT
OF THE PROBLEM
In Nigeria, there has
been a rapid increase in the number of failed banks and the magnitude of the
problem has reached an unprecedented level. Bank failures in Nigerian banking
industry is a problem that has of late assumed an intractable dimension.
The situation is such that regulatory authorities appear to be fighting a
losing battle in their bid to sanitize the system. This has of course resulted
in the erosion of public confidence in the banking system and therefore the
reduction in the flow of inventible resources that could be channeled to the
productive sectors of the economy.
Therefore, that is why
the researcher deemed it fit to examine the impact of there failed banks on
Nigerian economy.
1.3 OBJECTIVE
OF THE STUDY
Because of the central
role which the banking system plays on the growth and development of any
economy the objectives of this study are therefore.
1. To
find out if there is loss of confidence in the banking system
2. To
find out if there is reduction in bank deposits
3. To
identify if there is any reduction in foreign investments.
4. To
find out if bank failure can lead to devaluation of the Nigerian currency.
5. To
find out if bank failure can lead to unemployment through retrenchment of
workers.
1.4 RESEARCH
QUESTIONS
The researcher intends to make a critical and empirical evaluation fo the
impact of failed banks on Nigerian economy.
Towards this end
appropriate answers to the following research questions become necessary.
1. Is
there loss of confidence in the banking system due to bank failure?
2. Is
there any reduction in bank deposits due to bank failure?
3. Does
bank failure lead to reduction in foreign investment?
4. To
what extent can bank failure lead to devaluation of Nigerian currency?
5. Does
bank failure lead to unemployment?
1.5 RESEARCH
HYPOTHESES
1.
Ho: Bank failure cannot to
caused by poor portfolio management
Hi: Bank failure can be caused
by poor portfolio management
2.
Ho: Government’s debts owed to
banks cannot lead to bank failure
Hi: Government’s debts owed to
banks can lead to bank failure
3.
Ho: Monetary authorities has no
significant role to play in controlling
bank failure
Hi:
Monetary authorities have significant role to play in controlling
bank failure.
1.6 SCOPE
OF THE STUDY
This research work is
limited to Nigeria economy only. One to time, financial constraints and others,
the researcher was unable to cover much ground.
DEFINITION
OF TERMS
1.
Insolvent: Inability of bank to
meet the claims of its creditors as and when they fall due.
2. Stakeholders: Defined
as people who have invested some amount of money in the bank.
3. Bank
failure: Defined and use here as the inability of banks to meet its
obligations as and when due from weakness in its financial, operational and
managerial conditions
4. Depositors: Those
who deposit money with the bank
5. C.B.N: Defined
as the Central Bank of Nigeria
6. NDIC: Defined
as Nigeria deposit insurance corporation
| Department | Banking and Finance |
| Project ID Code | BFN0199 |
| Chapters | 5 Chapters |
| No of Pages | 71 pages |
| Methodology | Chi Square |
| Reference | YES |
| Format | Microsoft Word |
| Price | ₦4000, $15 |
|
|
|
| Contact Us On | +2347043069458 |