A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR

  • Type: Project
  • Department: Accounting
  • Project ID: ACC1176
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 58 Pages
  • Format: Microsoft Word
  • Views: 964
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR

(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.

          Inefficient management has contributed significantly to the financial distress in Nigeria banking sector. This was approved statistically with the chi-square test techniques.

          It was also discovered that fraudulent practices are a big causes of financial distress in Nigeria banking sector.

          Based on the presentation of data and chi-square techniques conducted the researcher was right. Furthermore, it was observed that financial distress in Nigerian banking sector has an adverse effect on the economy of Nigeria as a whole.

          Finally, it was equally observed that loan mistnaches contributed to the financial distress in Nigeria banking sector.

TABLE OF CONTENT

Title page

Approval page

Dedication page

Acknowledgement

Abstract

Table of content

List of tables

List of figures

CHAPTER ONE

1.0 INTRODUCTION

1.1      Statement of problems

1.2      Purpose of study

1.3      Significance of the study

1.4      Statement of hypothesis

1.5      Scope of the study

1.6      Limitation of the study

1.7      Definition of terms

CHAPTER TWO

2.0 REVIEW OF RELATED LITERATURE

2.1    Historical background of First Bank Plc

2.2    An overview of capital base

2.3    Under capitalization and its effects on the banking sector.

2.4    Multiplication of Banks

2.5    Inefficient management

2.6    Fraudulent practices

2.7    Loan mismatches

2.8    Effect on financial distress in Nigeria banking sector of the economy.

CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1    Sources of data

          Primary data

          Secondary data

3.2   Sample used

3.3   Method of investigation.

CHAPTER FOUR

4.0 DATA PRESENTATION AND ANALYSIS

4.1   Data presentation and analysis

4.2   Test of Hypothesis

CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND              RECOMMENDATION

5.1     Findings

5.2     Conclusion

5.3     Recommendation

Bibliography

Appendix

Questionnaire

CHAPTER ONE

INTRODUCTION

The importance of capital as a necessity though not sufficient condition for economic growth is recognized in development economy where it is believed that the position of adequate financial resources is a pre-requisite for industrial transformation.

          Experiences in some countries notably Japan, India and Germany have shown that banks if sufficiently in their respective countries could serve as an engine of growth to greatly assist the promotion of rapid economic transformation of any nation. Banks all over the world occupy a strategic and lending position in financial sector. Many Nigerians see banks as places nobody can mess up. Hence, their accepting institutions as the safety place for depositing their money. It is equally because of the confidence they have in the industry as a whole that over the years, many of them imbedded this habit of savings, which in turn is very necessary of positive economic development of the nation.

          Ekechi (1995) said that confidence is a pre-requisite for economic recovery and sustained growth, but confidence is not a gift. It must be earned through the adjustment effort or rather confidence is rented because it is never yours and because it can be taken away anytime. The adjustable effort has to go on each and everyday”.

          One legacy the structural adjustment programme (SAP) left on its trials is the increase in the number of banks in the country before the introduction of SAP in 1986. The number rose to about 127 as at August 1995. This phenomenal growth of banks was initially hailed as a healthy development in the economy because it was to spread the resources in the economy.

          Because of the importance of banks monetary authorities pay great attention to the banking industry. In this process, they are sometimes faced with the problems of how best to handle financial distress in Nigeria banking sector. Financial distress in Nigerian banking sector date back to 1930 when the industrial and commercial bank, (ICB) failed one year after its established.

          As Hornby defined distress as “great pains, discomfort of sorrow caused by wants of money or other necessary things.

          John Ebhodaghe in explaining financial distress “two major problems are usually of serious concern. These are liquidity and insolvency”. He went further to explain liquidity as the inability of banks to meet its inabilities as they mature for payment while insolvent when the value of its realizable asset is less than the total value of liabilities.

          The reasons for early distress of banks are summarized in the following features, which characterized the banks since during the period.

1.     Foreign banks domination of deposit base, credit availability.

2.     Banks services tailored to the needs of the expatriates.

3.     Indigenous bank boom and failure resulting from under capitalization and poor quality management.

4.     Lack of banking, control and direction.

          Recently, it was realized that the development of statistical based, early warning system for problem banks identification would greatly assist regulators on classifying banks into sound and unsound categories. Worthy of notes is Decree No. 26 of August 1992 that prescribed the following for banks to be adjusted healthy.

1.     Specified cash reserve

2.     Specified liquidity ration

3.     Adherence to prudential guidelines

4.     Statutory minimum paid up capital requirement Adequate capital ration

A CRITICAL ANALYSIS OF CAUSES AND PROBLEM OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC1176
  • Access Fee: ₦5,000 ($14)
  • Chapters: 5 Chapters
  • Pages: 58 Pages
  • Format: Microsoft Word
  • Views: 964
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC1176
    Fee ₦5,000 ($14)
    Chapters 5 Chapters
    No of Pages 58 Pages
    Format Microsoft Word

    Related Works

    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
    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
    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
    TABLE OF CONTENT Title page  Approval page  Dedication page  Acknowledgement  Abstract  Table of content  List of tables  List of figures  CHAPTER ONE  1.0 INTRODUCTION  1.1    Statement of problems  1.2    Purpose of study  1.3    Significance of the study  1.4    Statement of hypothesis  1.5    Scope of the study  1.6  ... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The last two decade have been seen as a proliferation of systematic banking problems in Nigeria. Banking crisis have threatened macro-economic stability through their effects on monetary control, the fiscal consequences on banks rescue packages and... Continue Reading
    TABLE OF CONTENT Title page                                                                          i Certification                                                                       ii... Continue Reading
    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... Continue Reading
    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... Continue Reading
    ABSTRACT The researcher examines the technique of managing financial  distress in the Nigerian banking industry. The researchers purpose of study among other. To examine bank recapitalisation as a technique of managing distress in the banking industry. To examine debt recovery and cost reductive as a technique of managing distress in the banking... Continue Reading
    AN EXAMINATION OF THE TECHNIQUES OF MANAGING FINANCIAL DISTRESS IN THE NIGERIA BANKING INDUSTRY ABSTRACT    The researcher examines the technique of managing financial  distress in the Nigerian banking industry. The researchers purpose of study among other.     To examine bank recapitalisation as a technique of managing distress in the... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us