Banking Failure And Future Development

Banking Failure And Future Development

Abstract

For some times back in Nigeria, some banks haven’t been living up to prospects. During the free banking period, a lot of banks failed and this didn’t augur well for the frugality.

The experimenter noted that bank failures had adverse effect on the frugality. The study concentrated attention the general operations of the bank, its functional problems, consequences of bank failures on the business of manufactures and control measure, necessary in checking the prevalence for the unborn development of banks in Nigeria.

Bank failure is the incapability of a bank to meet up with its set pretensions. In the history, banks that failed, did so because of some reasons like incapability to recognize depositors fund on request, indecorous account records, poor internal control and hunder capitalization.

The study further reviewed the results and recommendation for bank failures and unborn development of bank in Nigeria.

Accoutrements for the study were sohread from secondary sources. This was supplemented with data gotten from textbook, journals, journals, magazines, library and central bank of Nigeria publications.

Chapter One

Statement Of The Problem

There had been a lot of bank failures in Nigeria and numerous Nigerian are suffering because of the bank failures and also numerous people have been victim of bank failures in Niger because of these bank failures in Nigeria, the experimenter wants to find out the effect of bank failures in Nigeria.

Also the experimenter wants to find out whether the bank failures in Nigeria are affecting the farther development of banks in Nigeria or not. Is it shall going to beget lesser failures in the development of banks in Nigeria. Al this point will help the experimenter to find out possible ways and it’ll also help the experimenter to carry out his work successfully.

Explanation Of The Study

There have been series of inefficiencies in our banks. But it therefore appears that there haven’t been write- up sufficiently concentrated on the unborn development of banks hence, the reasons of this study are

* To bring to light, the colorful effect of unborn development banks for the benefit of the colorful banks in Nigeria.

* To examine the effect of bank failures on the unborn development of banks in Nigeria and in our frugality.

* Eventually, to suggest possible ways of detecting and precluding these failures in banks.

Significance Of The Study

As it relate to banks, the high motive of unborn development of banks in Nigeria, is to expose colorful areas of the banking operation where failures can be executed, the causes of similar futures and possible control indasures.

thus, with this, the exploration is significant in furnishing benefit for the bank workers. guests and the general public by

Creating, expanding and stimulating investment share and securities for the unborn development of banks in Nigeria.

ii. furnishing finance in the form of long or medium term loans or share participation.

iii. Advise and backing to indigenous enterprises similar as specialized, fiscal and directorial advise.

Background Of The Study

The fortunes of the frugality and banking sector are inextricably interwoven. What urged the exploration was the fact that development within the overall frugality, inescapably have direct impact on the terrain and regulated frame work within which banks operate. scarified by the growth rate in banking assiduity during last member of 1980’s, numerous question have been raised by members of public bout the survival of numerous banks in the 1990’s. This is born out of concern reflect to the questions

Is Nigeria not nowover-banked.

ii. Has Nigeria frugality, the banking labor force to a round all the banks in other not to affect the unborn development of bank?

iii. Will the languets in banks continue in the unborn development banks in Nigeria?

The establishment of NDIC, government has been unintentional to any bank foul, no matter the bank fiscal condition and for quality of operation confidence in the frugality, following a banks failure considering that the establishment of NDIC has made possible change in policy. The profitable reforms have assessed challenges and enormous responsibility on the fiscal system especially the bank.

numerous Nigerian pray noway to witness the high rate of failures that led to the increase in the number of indigenous banks, endured between 1947 and 1951 in the unborn development of banks, at least 21 of the 25 indigenous bank operating in the country collapsed. This is fact formed the base of this design because if the there’s bank failure moment, there will be doomed in frugality and in the unborn development of banks in Nigeria.