+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

THE CENTRAL BANK OF NIGERIA AND DISTRESS MANAGEMENT IN THE NIGERIA BANKING SECTOR

  • Type:Project
  • Chapters:5
  • Pages:80
  • Methodology:Z Test
  • Reference:YES
  • Format:Microsoft Word
(Business Administration and Management Project Topics & Materials)
THE CENTRAL BANK OF NIGERIA AND DISTRESS MANAGEMENT IN THE NIGERIA BANKING SECTOR
CHAPTER ONE

INTRODUCTION
1.1     BACKGROUND OF THE STUDY
Banks play important roles in the economic development of any country. As an important component of the financial system, they channel scare resources from surplus economic units to deficit units. In Nigeria, the banking sector has passed through various evolutions starting from the advent of banking dated back to 1892 to the present day of consolidation. Distress in the history of the Nigerian banking industry is not an entirely new phenomenon and this has had far reaching consequences on the economy. Among which includes loss of confidence by depositors in the industry with corresponding retardation in the tempo of capital formation for investment (Oforegbeunam, 2011).
Bank distress is not an accident and does not occur in a day. It is rather organic as well as systemic. It can therefore be predicted ahead of time bases on the identification of the early warning signals; thereby providing a sustainable framework for bank management and regulatory authorities to take decisive actions to nip the problem of nonperforming loans, sustained drop in earning per asset, high turnover of staff, consistent sourcing of funds from the interbank market, turnover of  depositors, growing incidence of fraud, inability to meet statutory requirements, instability in corporate management (Kostyuk, 2011).
1.2     STATEMENT OF THE RESEARCH PROBLEM
The incessant banks’ distress in Nigeria suggests that there is something wrong with the economic and monetary policies of the government that have created rooms for the banks not to comply with them. It is an indication that the policies of government have not been properly evaluated to create value for the banking system and the economy. For instance, the banking failures of late 1940 and early 1950s and that of 1994 – 2000, had led to the erosion of confidence in the banking system. Between 1994 and 2000, a total of 33 terminally distressed banks were liquidated (CBN, 2001). Also, the number of banks was reduced from 89 banks in 2004 to 24 groups of banks at the end of 2005. With 9 banks now adjudged to be in grave situations in October, 2009, the number of banks will likely reduce progressively in future. The consequences of the scenario above are that: first, many people are hostile to the banking business, and large amount of money will be kept outside the banking industry. This implies that the ability of the banks to operationalize the monetary policy of the government will be seriously constrained.Second the banker-customer relationship will be threatened as people have lost confidence in the industry. Third, the distress in the financial sector will have a contagious effect on other sectors of the economy, with the tendency of reducing the rate of economic growth.
Against this backdrop, the following questions are raised:
Does Nigerian banks complied with the prudential guidelines of Central Bank of Nigeria?
Does Central Bank of Nigeria regulatory policies adequate and effective in distress management of the banking sector?
Is there significant improvement of commercial banks activities as a result of Central Bank of Nigeria regulatory policies?
1.3     OBJECTIVES OF THE STUDY
The main objective of this study is to examine the central bank of Nigeria and distress management in the Nigeria banking sector.
The specific objectives are:
To investigate if Nigerian banks complied with the prudential guidelines of Central Bank of Nigeria.
To determine if Central Bank of Nigeria regulatory policies is adequate and effective in distress management of the banking sector.
To find out if there is significant improvement of commercial banks activities as a result of Central Bank of Nigeria regulatory policies.
1.4     RESEARCH HYPOTHESIS
The hypotheses for this study are;
Nigerian banks comply with the prudential guidelines of Central Bank of Nigeria
Central Bank of Nigeria regulatory policies is adequate and effective in distress management of the banking sector.
There is significant improvement of commercial banks activities as a result of Central Bank of Nigeria regulatory policies  
1.5     SCOPE OF THE STUDY
This research work focuses on central bank of Nigeria and distress management in the Nigeria banking sector.
The population of the study is the entire quoted banks in the Nigeria stock exchange, while the sample size is restricted to five (5) banks quoted in the Nigeria stock exchange.
The length of period covered by the study was five years (2006 – 2010).
Geographically, the study will be conducted in Benin City, Edo State.
1.6     SIGNIFICANCE OF THE STUDY
The banking sector is the major player in the entire body of an economy. Many people and institutions are affected by the operations of banks. Thus the issue of bank distress which has octopus nature in the banking sector of the economy needs the total commitment from all the stakeholders in the corporate business world to tackle, including the financial experts in their various fields to map out strategies to prevent it in tis entirely.
This study therefore would be useful to bankers, managers, policy makers, accountant’s ad researchers and all interested in the management and control of bank distress in Nigeria.
1.7     LIMITATIONS OF THE STUDY
In the course of carryout this study, the researcher encountered some constraints such as finance and time.
Financial constraints: finance is largely needed to tour wider regions or location just to gather data for processing. But this was not adequately available to sufficiently meet the purpose of this study.
Time constraints: this study coincided with the first and second semester academic demands which made it enormously tasking more time would have been devoted to critically evaluate the impact of the capital market on Nigerian economy using some basic market indicators.

THE CENTRAL BANK OF NIGERIA AND DISTRESS MANAGEMENT IN THE NIGERIA BANKING SECTOR

Share This

Details

Type Project
Department Business Administration and Management
Project ID BAM1520
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 80 Pages
Methodology Z Test
Reference YES
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Business Administration and Management
    Project ID BAM1520
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 80 Pages
    Methodology Z Test
    Reference YES
    Format Microsoft Word

    Related Works

    CHECKING DISTRESS IN THE NIGERIAN BANKING SECTOR THE ROLE OF ACCOUNTANTS AND AUDITORS [A CASE STUDY OF FIRST BANK OF FIRST BANK OF NIGERIA PLC, AWKA ) PROPOSAL The objective of this research work is to check the distress in the banking sectors, the duty of the accountants and auditors to make sure that it does not occur. The method of research... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Governments around the world are adopting measures to encourage or require their agencies, private businesses and individuals to shift away from using cash towards digital payments. Some have offered incentives, such... Continue Reading
    (A CASE STUDY OF AFEX BANK PLC.) ABSTRACT Based on the presentation and analysis of data on the topic CRITICAL ANALYSIS OF CAUSES AND PROBLEMS OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR” the following are the major findings.... Continue Reading
    ABSTRACT Based on the presentation and analysis of data on the topic CRITICAL ANALYSIS OF CAUSES AND PROBLEMS OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR” the following are the major findings. Inefficient management has contributed significantly to the financial distress in Nigeria banking sector. This was approved statistically with the... Continue Reading
    CHAPTER ONE INTRODUCTION BACKGROUND TO THE STUDY The banking industry in any economy all over the world functions as a catalytic agent for growth as well as development. They are capableof accomplishing these crucial functions of financial... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 STATEMENT OF THE PROBLEM Before the introduction of the prudential guidelines, according to CBN circular (1990) some banks were used to declaring huge but unrealized profit, otherwise referred to as “paper profit”.  The following problems will be investigated in this study: (a) Did profit figures of the selected... Continue Reading
    “THE IMPACT OF CENTRAL BANK OF NIGERIA PRUDENTIAL GUIDELINES ON THE FINANCIAL STATEMENT OF LICENSED: A CASE STUDY OF FIRST BANK OF NIGERIA PLC AND UNION BANK OF NIGERIA PLC”. ABSTRACT The prudential guidelines for licensed banks which are based on globa banking standards, imposed far-reaching requirements in the classification of risk assets... Continue Reading
    MOTIVATION OF BANK WORKERS FOR HIGHER PRODUCTIVITY IN BANKING SECTOR (A CASE STUDY OF UNION BANK OF NIGERIA PLC OKPARA AVENUE ENUGU) ABSTRACT The downturn is the fortunes of most business in Nigeria in recent time has been attributed to several factor including global recession inflation fluctuation in the value of the naira etc. Poor motivation... Continue Reading
    ABSTRACT This study is based on x – raying financial distress in the banking sector, the apex transaction boot of our economy. It is however interesting to note that this study not only would expose also would examine the various mechanism that have been put in place, mostly and... Continue Reading
    THE IMPACT OF CENTRAL BANK ON NIGERIA PRUDENTIAL GUIDELINES ON THE FINANCIAL STATEMENT OF LICENSED BANK (A case study of Union Bank of Nigeria PLC) ABSTRACT The prudential guidelines for licensed banks which are based on global banking standards, imposed far- reaching requirements in the classification of risk assets and provision for bad doubtful... Continue Reading