CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The issue of bank distress has been a problem which financial institutions suffer must. The era of all for free banking in Nigeria brought which can be traced as of (1892) when banking started in Nigeria gave room for the establishment of many banks because there was little or no laws guiding banking business. Because the was no law or supervisions on establishment of banks, many banks were established without adequate capital requirement.
Morestill, the era of Structural Adjustment Programme (SAP) and deregulation brought another face in the banking industry which made many banks to sprang up in Nigeria. This made many more banks to be established in our country. But, as more laws guiding banking industries were established some of these mushroom banks were affected. Such laws were regulated by some bodies and each bodies include, BOFIA, CAMA 1990, NDIC etc. banking and other financial institution Act, Company and Allied matter Act, Nigerian Deposit Insurance Corporation and all these bodies regulating the activity of banking in Nigeria.
However, bank distress became a problem in the country when these regulating bodies started monitoring the activities of these banks. Infact, so many of them as a result of not meeting the banking CAMEL, they became distress. CAMEL here refers to, capital Adequacy, Assets Quality management competency, Earning Strength and Liquidity sufficiency.
Infact, by 1954, vitually all the indigenous banks that sprary up during the free-for-all banking period got distressed and finally failed. In this period only three of them, the National Bank of Nigeria, the Agbonmagbe bank (Presently WEMA Bank) and the African continental Bank survived. Infact they were able to survive because they got assistance from state government
1.2 STATEMENT OF PROBLEM
Having seen all the measures adopted by the government to avoid bank distress by establishing regulating bodies and laws to avoid distress. Many banks still get distress. The question now is, why do banks still get distress after all these guideline established by these regulatory bodies.
TOPIC: Hence, it is hoped that it will serve as a basis for further academic adventures. The research work is expected to be of immense help to foreign investors in the country. The relief should be stricked to manufacturing companies like those in the pharmacetical food, processing, building materials, banks etc. the banking should be more flexible to allows such expenses as deductible in computing banking profit of such Nigeria. To the enterprenuers who want to establish bank in stale of their choice, they could be attracted to depressed area if more governors, banking incentives are made available for business established in such areas.
1.3 OBJECTIVE OF STUDY
For the purpose of this research, the researcher has decided to know the following as regards to the topic “The Banking distress in Nigeria, cause and Implications.
Such objectives are:
To investigate what is banking distress
To inquire when it started in Nigeria
To ascertain the causes
To identify the implications in the economy
To proffer the possible solution to the problem
1.4 SIGNIFICANCE OF THE STUDY
The findings of the research works together with its conclusion and recommendation will be of importance in the following regard to future researchers.
Although, this work represents a significant attempts, it is not exhaustible at the:
TIME FACTORS: Time is a major constraining factors. This is obvious, since the researcher work hard to be completed with a specified period time, other academic programme.
LACK OF SOME STATISTICAL DATA:
All this statistical data needed for the study could not be gotten by the researcher in local government, under study and using other data from other local government are irrelevant.
LACK OF ADEQUATE KNOWLEDGE
Lack of knowledge is another problem the researcher encountered on the course of this study.
goods to another country
NOT THE TOPIC YOU ARE LOOKING FOR?
Once payment is made, kindly send us your project topic, email address and payment name to +234 810 144 4147
Once payment is confirmed, Project materials will be sent to your email
Due to the lock-down, the number of PoS transactions fell by more than 20% to 40.85 million in April, from 52.2 million at the end of March. According to a study published by the Nigeria Interbank Settlement System, the trend is reversing, with POS r...
Without a doubt, the global financial community is embracing the latest technological transformation from real currency to almost abstract currencies. Cryptocurrencies were born as a result of this surge.
Without a doubt, the global financial community is embracing the latest technological transformation from real currency to almost abstract currencies. Cryptocurrencies were born as a result of this surge.
The accessibility of POS aided individuals in performing cashless transactions and other financial activities. However, Nigeria's enforced lockdown restricted the activities of POS businesses, resulting in a shortage of withdrawal points and other ba...
In Nigeria, running a POS business is a legal way to earn money. It's more lucrative in areas where there are no deposits and ATMs aren't enough to meet the community's financial needs. It's also known as agent banking because it's an expansion to fi...
In comparison, Boko Haram, one of the continent's most dangerous terrorist groups, killed 78 civilians during the same time period. Fulani attacks on farmers are primarily practical rather than ideological; competition for suitable grazing land over ...
The widespread dissemination of the COVID-19 virus has thrown the world's nations, including Nigeria, into a health crisis. The implementation of lockdown measures was deemed the best solution for countering the virus's dissemination.
This study on the impact of Covid-19 on Banking sectors will in doubt be of great significance to the entire banking sectors as the study was carried out the unveil the trauma banks suffered as a result of this unforeseen outbreak of Covid-19.
The idea of this research work is to assess the factors affecting the adoption of pos terminals by business organizations.
This study will be relevant to the general public especially those with entrepreneurship potential. It will give potential entrepreneurs first hand information on the challenges they are likely to face in their quest of establishing a POS business an...
Message Us on WhatsApp »
