AN EXAMINATION OF THE IMPACT OF FAILED BANKS ON NIGERIA ECONOMY (1995-2005). RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
This research work in failed banker is with a view to examine its impact one the Nigerian economy. The statement of problem in this research work aimed at finding if there are reductions in the flow of inventible resources that could be channeled to the productive sector of the economy.
Section II showed how the researcher made a random selection of 100 respondents from 3 selection banks arrived at a sample size of 50 which implies that 50 questionnaires were distributed and all were returned.
This is followed by identifying the forms and causes of bank failure in Nigeria banks in section III; this section was what the researcher was able to do which other researcher failed to do.
Section IV the major finding was summed up in just one sentence which is “Bank failure has almost crippled Nigerian economy and this implies that bank failure retards the economy’s rate of capital formations and ultimately the face of economic growth concluding with section V the researcher suggests that further researcher should research on the role of monetary authorities in bank failure prevention.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The importance of the banking section in any economy is derived from its roles of financial intermediation provision of an efficient payment system and facilitating the implantation of monetary policies. In intermediation, banks mobilize saving from the surplus limits of the economy and channel these funds to the deficit units particularly private business enterprises for the purpose of expanding their productive capacity. In operating the payment mechanism, the banking systems liabilities serve as the medium of exchange. In the execution of monetary policies, bank serve as agents through which there policies are implemented. Hence, an efficient and effective banking sector is essential not only for the promotion of efficient intermediation but also for the protection of depositors encouragement of healthy competition maintenance of confidence in, and stability of the system and protection against systematic risk and collapse. For the banking in industry of any economy to achieve there objective the industry must be stable safe and sound.
In Nigeria, there has been a rapid increase in the number of bank failure and the magnitude of the problem has reached an unprecedented level.
Currently, the problem has assumed a generalized dimension thereby making it an issue of concern to the government, the regulatory authorities the bankers the general public and the international financial institutions such as the world banks and international monetary fund (IMF).
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