MERGER AND ACQUISITION AS A WAY OUT FOR DISTRESS BANK “A CASE STUDY OF UNITED BANK FOR AFRICA”

Prior to the recapitalization and reformation in the banking industry by Central Bank of  Nigeria (CBN), under the leadership of Prof. Charles Soludo, our  banking system has been in disarray.  It was engaged by incessant distress and failure.  The problem of bank distress and failure has pervaded the  Nigerian banking sector in recent time to such an extend that the problem has become a big challenge to regulatory and supervisory authorities, the government, the banking management and the general banking public.  This research was focused on the analysis of factors in the banking industry in Nigeria. Thus the researcher investigated the poor loan management practice and other inter-related factors which inter played to give rise to the distress condition in the bank.  Primary data were obtained and subjected to rigorous analysis  using percentage as a tool of analysis.  Based on the result of the analysis of findings, the following conclusions were  reached.  That merger and acquisition will help in prevention 0f distress in the banking sector.  That bank distress and failure in the banking sector affect other sector of the economy.