Banking Failures In Nigeria

Banking Failures In Nigeria

Chapter One

Preface

Background Of Study

Banks are generally honored and accepted to be a body that play a catalytic part in the process of profitable growth and development. In any society, they’re the

The brain of profitable stimulation and growth. When there’s bank failure in any frugality, similar frugality is terribly affected.

Bank are the holders of the bulk of the nations financial force. This is getting decreasingly so as the public mindfulness of the services of banks increase and as the physical presence of banks rises throughout the country. Because of the force of plutocrat and credit requirements, banks no doubt enthrall of any country.

According to AlashiS.O( 1991). Empirical substantiation exists which suggest a positive correlation between real profitable growth and bank means, and between plutocrat force, bank means and profitable development.

Banks failure and associated run on banks limit the capability of banks to produce. plutocrat, peril the payment mechanisms and disrupt bank- lending conditioning( Nyong 1995).

Statement Of The Problem

Every country attempts how to maintain a healthy fiscal system because of its incompetence in profitable growth and development of the bank failure in the society.

There’s bound to be a serious problem in that society.

From the morning of banking in Nigeria there have been serious extremity of bank failure in the assiduity. This no mistrustfulness constitutes a set bank in our hunt for profitable growth and development. Such a situation shouldn’t be allowed to continue. To this effect there’s need to probe the causes of bank failure as the logical step towards formulating realistic policy to arrest the trend.

Purpose Of Study.

The purpose of this study is to concentrate attention on the problem of bank failure in Nigeria which is hanging to hinder the resumption of sustain profitable growth and development of the Nigeria frugality. To this effect the major ideal of this study is to

1- Identify the causes of bank failures in Nigeria

2- Formulate a model to identify failed banks

3- give policy suggestion to minimize the circumstance of bank failure in the country.

Significance Of Study

The significance of this study is to achieve a great success in contributing the little the exploration can, if not a great deal in working the bank failure problem in Nigeria which will in turn being about an immense change in the Nigeria banking sector with particular reference to standard trust bank Enugu

It’s as well hope that this exploration work will surely enlightening the staff and operation of banks especially standard trust bank enugu. In addition it’ll bring about more profitably benefactions and enhancement to every order banks nation wide to know their problem and locales, further more, this study will serve as means to attack utmost of the essential problems effectivel7 again it’ll help the society of large in the evens or to be as a positively side of the failure pattern on Nigeria banks is canceled fully.

Eventually though the experimenters confined the study to Enugu state and standard trust bank the result of findings will be of means profit to all banks in Nigeria as well as scholars conducting analogous exploration on the same content or related one.

Limitation Of Study

during this exploration, there were some problems that stumps up and some of them are as follows

1- FINANCIAL CONSTREINT as a pupil the fund available wasn’t enough in transporting and fact findings and all so for borrowing of necessary literature that would have help in the wring of this exploration work.

2. OPERATION CONSTRAINT the study should have included more banks in the sample but for the on vacuity or data from further banks, secondly the data used are lower than accurate sense the represent information for the public which may not the factual the same with the situation of ground in the banks.

Description Of Terms

Bank Failures

According to Eugene and Louse( 1985) they’re five different types of failures these are, profitable failure, business failure,; specialized failure or bankruptcy, in ruin and legal ruin. The world failure according ozogn( 1984) means to be unprofitable l in attempt; at achieving any set objects or aspiration it could be also mean the incapability, turndown, forth or weakness which help achievement of any set objects or aspiration.

Within the conduct of this write up thus, one could explain bank failure at the end capability to the bank to meat up with its obligation to its guests. possessors and frugality as a total should be noted so as to not to be linked with failing banks.

Economic Growth

profitable growth means the increase in quality of goods and services that inversely increases and public income. Growth doesn’t consider or involved overall change in the structure of the society. It’s good of note that frugality may be growing yet but not growing( developing)

Economy Development

Frugality development means sustained changes in an profitable leading to accretive increase in real income per capital, increase in force of ameliorate factors of product, enhancement in allocation of factors similar that every factors is used effectively, indifferent distribution of inflows, development of effective executive and political systems, enhancement of effective in social of frugality architectures, provenance of political and social stability and sectional balance in development.

References

AlashiS.O( 1991). ” the counteraccusations of current financial policy on safe nd sound banking practice to insure stability in the assiduity ”. NDIC Quarterly, vol. No 3 September 1991.

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AhudolieE.F.

OhucheF.K.

MACKINSS.I.O

ORITAL.I. Economics for the heydays first edition 2000

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First Edition 2003

Nyong 1995, Ocogun 1994 Articles.