EFFECTS OF BANK FAILURE IN NIGERIAN ECONOMY. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
The aim of the project is to provide information to the public on the “effect of bank failure in Nigeria” it is geared towards bringing to light some of the activities or services rendered by the banking industry bank failure causes and the effect to it. The project is made up of five chapters.
The chapter deal with the interaction, this takes about the background information about the evolution of the banking system and bank failure.
The seconding chapter deals with review of related literature in this topic high lighting different writing opinion concerning bank failure causes and bank depositors it also discusses the roles of banks in Nigeria economic development.
More so the third chapter deals with the procedure and sources include background information population and sample construction of instrument the statistical method used in the analysis of the various data etc.
The further chapter discusses the date analysis and interpretation it also spiffed the responses of the respondents from the various research questions.
Finally chapter five provides the summary of the whole study recommendation conclusions and also area of further research.
CHAPTER ONE
1.0 INTRODUCTION
1.0 BACKGROUND OF STUDY
Failure as a word means to be unsuccessful in attempts at achieving any the objectives or aspirations. Another variance to the inability, refusal fault or weakness which prevent the achievement of any set objectives or aspiration.
Both of these draw attention to the operative world” unsuccessful inability refusal fault and weakness “therefore bank failure is the inability of a bank to meet its objection to it customers, owners and the economy occasional by fault or weakness in its operation which had wand it illiquid and later insolvent.
There is not doubt that fraud has exasperated to desperate situation in the Nigeria Banking sectors. Fraud and embezzlement are not widespread. Both are unturned in the fraud crises jamboree. Furthermore, fraud in its itself may not widespread. Bank are unturned in the fraud crisis may not be a sufficient condition for a banking crisis. The researcher submits that extremely bad management until adverse economic conditions led to unexpected capital on flows or loan losses. Thus even if every bank which failed is judged to have suffered from mismanagement or fraud, or operated in a over populated banking market, it may well be the case that adverse, it may well be case that adverse economic conditions will be the proximate cause of many bank failure.
Employees as well as clients of firms in all industries engage in fraudulent practices all over the world. Whilst if cannot, strictly speaking be said to be an ordinarily expected human behaviour, including the socialist societies world make one state that is an inhuman behaviour. Although the existence of frauds in banks it not an uncommon or unexpected phenomenon, Ogwuma, P. (1985:21) says it is worrying because of all the various problems confronting the Nigerian banking industry today, that of fraud is easily the most intractable. The banking industry worries more about fraud because of the rather obvious damaging consequences of the acts on the health and existence of the institutions.