The aim of this research study is to analyze and ascertain the extent to which fraud and poor management contributed to bank failure through a careful analysis of banking industry with a particular reference to the presently embattled Savannah Bank of Nigeria Plc. whose operating license was recently revoked.
Chapter one examined the historical development of banking in Nigeria, recognizing the catalytic roles of the business of banking in the economy, together with other introductory analysis on the extent of bank failure and fraud and their effect on the development of banking business in Nigeria.
In chapter two, an overview of bank failure in Nigeria economy was made. Emphasis were laid on their genesis, caused (fraud and poor management), control issues involved in bank failure management. Particular attention was drawn on the impact of banking business in the overall development of the people, and economy and the implications of its failure. The controversy surrounding the revocation of the operating license of Savannah Bank Plc and the prospects of banking business were also treated.
In chapter three, the research narrated how the various data for this study were collected and which informations were used with a view to realizing the objectives of the study.
In chapter four, tables of percentages were used to present and analyze the data collected and which information were used with a new to realizing the objective of the study.
In chapter four, tables of percentages were used to present in analyze the data collected while chi-square method was used to test the postulated hypothesis.
Finally, in chapter five, a critical analysis of the research study revealed that bank failure in Nigeria are attributable principally to fraud, poor management team and adverse economic conditions among other institutional and non- institutional factors. However, it was recommended among other things that due to the peculiar and strategic position of the banking industries and their synergistic effects of change arising. Therefore government should closely monitor the activities of bands through their agencies/regulatory authorities without necessarily politicizing their mandate Banks should equally strengthen their internal control measure. Moreover, if the regulatory authority saddle with the responsibility of managing industry keep an eagle in the industry’s activities, it will stem the tide to bank meddling with the fortunes of depositors shareholders and other interested parties and forth overall benefit of the economy. This is in view of the catalytic role of banking business in the economic confidence in the banking public. Further research on very relevant linked area of the research topic was also suggested by the research. This is in view of the dynamism, and inexhaustibility of the topic of study. TABLE OF CONTENT Title page ii Approval page iii Dedication iv Acknowledgement v Table of contents vi Abstract ix CHAPTER ONE 1.0 Introduction 1 1.1 Background of the Study 1 1.2 Statement of Problem 4 1.3 Objective of the study 7 1.4 Significance of the Study 9 1.5 Research Questions 11 1.6 Formulation of Hypothesis 12 1.7 Scope and Limitations of the Study 12 1.8 Definition of Terms 14 Reference 17 CHAPTER TWO 2.0 Literature Review 18 2.1 Evolution of Banks Failure in Nigeria 25 2.2 Fraud in Banks- An overview 33 2.3 The poor management control system and Bank Failure 37 2.4 Tackling Bank failure in Nigeria 40 2.5 Savannah Bank of Nigeria PLC and the Banking Regulatory umpire: The seizure of operating license 45 2.6 Future prospects of Banking business in Nigeria 51 2.7 Summary of Literature Review. 55 Reference 56 CHAPTER THREE 3.0 Research Methodology 58 3.1 Research Design 59 3.2 Area of Study 60 3.3 Population of Study 62 3.4 Sample and Sampling procedure 63 3.5 Instruments for Data collection 68 (a) Primary sources 68 (b) Secondary sources 69 3.6 Methods of Administration of Research Instrument 69 3.7 Methods of Data Analysis 70 3.8 Reliability and Validity Tests 72 CHAPTER FOUR 4.0 Data Presentation and Analysis 73 4.1 Data Presentation 73 4.2 Data Analysis and Interpretation 74 4.3 Test of Hypothesis 89 Reference 97 CHAPTER FIVE 5.0 Summary of Findings, Conclusions and Recommendations 99 5.1 Summary of Findings and their Implications 100 5.2 Conclusions 106 5.3 Recommendations 108 Bibliography 113
THE IMPACT OF BANK FAILURE IN NIGERIA ECONOMY A CASE STUDY OF SAVANNAH BANK OF NIGERIA PLC
INTRODUCTION 1.1 BACKGROUND OF THE STUDY The Nigerian economy has undergone structural changes in the past three decades from a predominantly agricultural economy in the 1960s to an economy mainly valient on oil from the mid 1970s The growth in oil earnings was not fully internalized into the economic system. The result was that the consumption... Continue Reading
TABLE OF CONTENTS TITTLE PAGE APPROVAL PAGE DEDICATION ACKNOWLEDGEMENT TABLE OF CONTENT CHAPTER ONE INTRODUCTION 1.1 Background of the Study. 1.2 Statement of the Problem. 1.3 Purpose of the Study 1.4 Delimination 1.5 Limitations CHAPTER TWO LITERATURE REVIEW 2.1 Historical Origin of Union Bank 2.2 Difference Between Union Bank and Other Banks 2.3... Continue Reading
ABSTRACT The prudential guidelines for licensed banks which are based on globa banking standards, imposed far-reaching requirements in the classification of risk assets and provision for bad and doubtful debts. Since its introduction in November 1990 the implementation of the guidelines has had a profound impact on the operations of banks. In this... 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
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
INTRODUCTION 1.1 BACKGROUND OF THE STUDY The term bank means place where money and valuable are kept for safety. So bank failure means the inability of the bank to meet its statuary obligation. The financial sector of any economy plays an important role in promoting and supporting economics growth and development. When the financial (sector) is in... 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
ABSTRACT The aim of the study is to find out the extent of Bank/Customer relationship bearing in mind the poor quality of services rendered in banks. Traders to achieve a good and accurate result the researcher split the work in five distinct chapters, each with different objectives. To guide the study, four questions were formulated. A review of... Continue Reading