DISTRESS IN THE FINANCIAL INDUSTRY: CASES, APPLICATION AND POSSIBLE SOLUTION. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
PROPOSAL
This research is based on distress in the banking industry; causes implication and possible solution
Chapter one deals with the background of the study, the statement of problems, the purpose of the study, and significance of the study. Also the researcher went further to give the review of the related reiterative in chapter two.
Further more, the chapter three talks about the researcher design and methodology (area of study, population, sampling and sample procedure, and instrument of data collection, validation of research instrument and method of data collection and analysis)
She went further to explain data presentation and summary of result in chapter four and discussion of the result implication, recommendation and possible solution in chapter five.
CHAPTER ONE
1.1 INTRODUCTION
The research work is about the financial distress in the banking industries, causes, implications, and possible solutions. Bank distress occurs when a bank or some bank in the system experience liquidity or insolvency resulting in a situation were depositors fear the loss of their deposits and a consequent breakdown of contractual obligation. While a bank is said to be liquid when it cannot met up with its liability as when they are matured for payment. It is said be insolvent when the value of its realizable asset is less than the total value of its liabilities (“ a case of negative network “). The cold lead to an overall ruin as the depositor’s loss their confidence in the system and avoid capital loss.
In a different human perspective, bank distress means a different thing. To some people, bank distress exists only when the bank in question ceases to operate even if it has not been officially liquidated. In a wilder contend, a bank is said to officially distress if it has failed in archiving and of the objective for which it was established. The objective of this project among others is to access financial distress in the banking industry, with a view to identify their forms, cause and implication and the possible solution to them.
1.2 BACKGROUND OF THE STUDY
There is distress in the entire environment in the industry, law enforcement, education, communication, transport and other services, perhaps the most dangerous and most pronounce today is the distress in the banking industry, a people and confidence based industry which is expected to be a catalyst not a detonator of economic advancement. It is of a great importance to raise the standard of banking industry in Nigeria to realize that financial distress in the banking industry drive instability in the country. The critical importance of the bank in the economic growth and development explained why each economy takes serious view of their financial distresses. Any worthwhile economy seeks measures to prevent such distress failure in their economy.
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