Bank Failure In Nigeria

Bank Failure In Nigeria

Abstract

The end of the design is to give information to the public on the “ Bank failure in Nigeria a case study of Intercontinental Bank ” it’s geared towards bringing to light some of the conditioning or services rendered by the banking assiduity bank failure causes and the effect to it. The design is made up of five chapters.

The chapter deal with the commerce, this takes about the background information about the elaboration of the banking system and bank failure.

The seconding chapter deals with review of affiliated literature in this content pressing different jotting opinion concerning bank failure causes and bank depositors, it also discusses the places of banks in Nigeria.

More so the third chapter deals with the procedure and sources include background information population and sample construction of instrument the statistical system used in the analysis of the colorful data etc.

The farther chapter discusses the data analysis and interpretation it also spiffed the responses of the repliers from the colorful exploration questions.

Eventually chapter five provides the summary of the whole study recommendation conclusions and also area of farther exploration.

Chapter One

Preface

Over the last couple of decades, the Nigeria fiscal system has grown remarkably. From the nearly crude of it was characterized with in pre – colonizer and social days. It has come so sophisticated flunky that profitable experts can proudly thumb their cases. With due respects to the power structure of the institution, the nonsupervisory honey work, the instruments employed, and the number of established institution, Nigeria can be said to trains the most sophisticated fiscal system in Africa.

Within the Nigeria fiscal system itself, the banking system itself, the banking institution has been the most remarkable in growth. This is just as well in any case considering the critical position, which they enthrall . In a complex fiscal position, which they enthrall , in a complex fiscal position, which supplies the plutocrat and the credit, need of the frugality.

The work bank and banker is neither used or define. In the Central Bank of Nigeria( CBN) degree No 24 of the 1991 nor bank or other fiscal institutions decree( Bofio) No 25 of the 1991 2 of P5.115 of exchange act 1881 provides that bankers include a body of persons whether incorporated or not who carry out the business of banking. Section( 1) of the substantiation act define banks or bankers as any person or persons, cooperation or company carrying on the business of banking.

Financially, the banking act of 1969 produces that bank means any person who carries out the business of banking and include marketable bank and an acceptance house. The part of banks is therefore an important bone in the process of profitable development in the sense that they rally fund form the fat spending and for the frugality. In this way they increase the amount of public saving and investments. Secondary though an applicable investment multiplier, the volume of goods produced increase as a result of systems financed by bank finances, all of which lead to a successful creation of an effective system of payment. Creating banking habits development in the society and furnishing employment openings.

In view of this highlights, it come fluently scrutable why the failure of the bank has a far – reaching consequence.

The capability of a bank to operate successfully rest on how well they’re suitable to attained the confidence of thepublic.However, the gap will be too great for the bank to fill, If that confidence is missing. The effect of bank failure on the profitable development of Nigeria can be express in a nut – shell to be the following;

Lack of effective and effective fiscal intimidation

Loss of public confidence in the system, farther depression of the profitable fresh burdens on the nonsupervisory authorities – education of the social vice for the sake of the populace and in the interest of profitable development, there’s an advisable need to device a host of remedying situations.

The fact that a bank fails moment isn’t to say those frequentness aren’t methodical . There must be a number of ways out of any dilemma. The only crack is how effectively employed. similar remedy includes;

a) The civilization of a stable political terrain.

b) The strengthening of the nonsupervisory agency

c) The taking over by nonsupervisory bodies of all termnacy worried banks.

d) Stimulant of banking education

e) Sincere pursuit by government of all frugality and financial programs

f) All regulation pertaining capital, acceptability, minimal paid up capital, requidity rate and quality should be reviewed in relation to affectation rate.

g) Privatization and commercialization of all government possessed banks

h) All dept possessed banks by government( state, civil and indeed parietals) should be paid back incontinently.

i) All laws relating to ruin and dereliction should be reviewed and made more effective.

An address like this will go a long way in remedying the situation and restoring public confidence in the system.