Research concerns “Bank failure” causes and
consequences” Bank failure in our banking industry has become a peculiar
household word in this country, which cannot be overemphasized. It is a
re-current issue, which caused to captivate many individuals and banks, which
has caused untold hardship to collective individuals, individual, stakeholders.
This ugly scene has paved way for losses of staggering sum of money and
investment by some banks.
As a matter of facts, Banks
distress has significantly contributed to the bank failure of some banks. This
project work examined the trend that lead to the Bank failure and moreover,
some Bank staff have lost their jobs and single benefits. The confidence the
public has on the bank is speedily warning down and many bank customers comment
bitterly about this fact or issue.
The project surveyed the
literature in the causes and consequences of bank failure, impact of bank
failure, the remedies and the measures to control the incident of bank failure
in the banking sector and the investigator concluded that the causes of bank
failure comes under the following headings. Insider’s abuse, fraud and
forgeries, inexperience staffing, poor attitude of bank management, recruitment
of staff with low level academic qualifications, and high level of dishonesty
Specially, the objectives of
the study are
To determine whether bank failure still exist
in the banking industry.
To determine examine the
causes and consequences of bank failure on Nigeria banking industry.
Determine to understand the
degree of concern the bank management have shown in trying to prevent failure
To identify some of the
enabling laws by the supervisory authorities to ensure depositors funds incase
of bank failure.
To x-ray the poor accounting
procedures adopted by the bank management staff.
To accomplish these
objectives, a historical survey research design was conducted. Data were
sourced only from secondary source, without questionnaire been used as an
instrument of data collection.
Data collected were used to
form the literature review by the researcher, and upon the literature review,
findings, recommendations and conclusion was based by the researcher.
TABLE OF CONTENT
1.1.1 BACKGROUND OF THE
STUDY: GLOBAL HISTORY OF BANK FAILURES AND NIGERIA EXPERIENCE
1.1.2 HISTORICAL DEVELOPMENT
OF BANKING IN NIGERIA WITH SHORT PERIOD OF MASS FAILURE OF INDIGENOUS BANKS.
1.2 STATEMENT OF THE
1.3 OBJECTIVE OF THE STUDY.
1.4 SIGNIFICANCE OF THE
1.5 SCOPE AND LIMITATION OF
1.6 DEFINITION OF IMPORTANT
2.0 REVIEW OF RELATED
2.1 DEFINITIONS OF BANK
2.1.1 DEFINITION BY TEXTBOOK
2.1.2 STATUTORY DEFINITION
2.1.3 VIEW EXPRESSED BY THE
2.2 CONCEPTUAL FRAMEWORK
2.3 MEANING OF BANK
FAILURE/CASE FOR BANK FAILURE
2.4 CAUSES OF BANK FAILURES
IN THE NIGERIA BANKING INDUSTRY.
2.4.2 BAD LOANS/DECLINE IN
THE VALUE OF SECURITIES OWNED BY THE BANKS.
2.4.3 ASYMMETRIC INFORMATION
2.4.4 WEAK MANAGEMENT
2.4.5 FRAUD AND FORGERIES
INTERFERENCE/ADVERSE ECONOMIC ENVIRONMENT