TABLE OF CONTENT
Title page
Approval page
Dedication page
Acknowledgement
Abstract
Table of content
List of tables
List of figures
CHAPTER ONE
1.0 INTRODUCTION
1.1
Statement of problems
1.2
Purpose of study
1.3
1.4
Statement of hypothesis
1.5
1.6
1.7
Definition of terms
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE
2.1
2.4
Multiplication of Banks
2.5
Inefficient management
2.6
Fraudulent practices
2.7
Loan mismatches
2.8
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1
Sources of data
Primary data
Secondary data
CHAPTER FIVE
5.0
SUMMARY
OF
FINDINGS,
CONCLUSIONS
AND
RECOMMENDATION
5.1
Findings
5.2
Conclusion
5.3
Recommendation
Bibliography
Appendix
Questionnaire
CHAPTER ONE
INTRODUCTION
The importance of capital as a necessity though not sufficient condition
for economic growth is recognized in development economy where it is
believed that the position of adequate financial resources is a pre-requisite for
industrial transformation.
Experiences in some countries notably Japan, India and Germany have
shown that banks if sufficiently in their respective countries could serve as an
engine of growth to greatly assist the promotion of rapid economic
transformation of any nation. Banks all over the world occupy a strategic and
lending position in financial sector. Many Nigerians see banks as places
nobody can mess up. Hence, their accepting institutions as the safety place for
depositing their money. It is equally because of the confidence they have in the
industry as a whole that over the years, many of them imbedded this habit of
savings, which in turn is very necessary of positive economic development of
the nation.
1.2
STATEMENT OF PROBLEM
Financial distress in Nigerian banking sector dates back to colonial era.
One of the early Nigerian indigenous banks, the industrial and commercial
banks, the industrial and commercial banks (ICB) failed in the early 1930s and
between 1992 1994, the central bank of Nigeria (CBN) and Nigerian Deposit
Insurance Corporation (NDIC) were face with the problems on how best to
prevent the financial distress in the banking sector. Within this period, more
than thirty banks had been adjudged financially distressed.
The question remains what are the causes of these financial distresses in
the banking sector? According to Charles worth, research arises when there is
problem to solve, peculiarities or puzzle about a phenomena or the question to
attaching meaning to identify and examine the causes and problems of
financial distress in Nigerian banking sector.
1.3
line wit this following are the objectives of this write up.
1. To identify the extent to which low capital base has contributed to the
financial distress in Nigerian, banking sector.
2. To identify to the extent to which multiplicity of banks has contributed
to the financial distress in Nigerian baking sector.
3. To ascertain how inefficient management has contributed to financial
distress in Nigerian banking sector.
4. To identify to a large extent how fraudulent practices has contributed to
the financial distress in Nigerian banking sector.
5. To identify the effects of financial distress in Nigerian banking sector.
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1.4
will enable them to know the causes of financial distress in Nigerian banking
sector, and based on the recommendation of this study, they will know how to
prevent financial distress.
Government will also benefit. As the operators of the economy, they will
know the causes and effects of financial distress in the economy. Likewise, the
depositors and potential investors will also benefits. There is a need for a
development conscious country like Nigeria, to evaluate the performance of
her financial sectors so as not to jeopardize her development efforts. It is
helped that these findings will add to existing literature on causes and problems
of financial distress in Nigerian banking sector.
1.5
STATEMENT OF HYPOTHESIS
11
Hi:
2. Ho:
Hi:
3. Ho:
Hi:
1.6
in Nigerian banking sector with reference to AFEX Bank Plc. In the cause of
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this study, the researcher could not carry out the work extensively due to the
following constraints.
TIME CONSTRAINTS: Time was my greatest enemy as I had to cope with
my class work, assignments, home work, and the project work at the same
time, and more over, most of the materials for the project work are not located
in one place.
FINANCIAL CONSTRAINTS: Finance was my major constraints since I
dont have enough fund for running around and this hindered the full coverage
of the work.
1.7
DEFINITION OF TERMS
BANKS: Banks are financial institutions, which hold themselves out to the
public (individuals, firms, organization, and governments) by accepting
deposits and giving out advances as well as performing other customers.
FRAUDS: Fraud is intentional distorting twisting or changing of financial
statement or using criminal deception to deceive someone in order to achieve
illegal advantage
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REFERENCES
CharlesWorth, J.C (1967), contemporary political Analysis New York Free
Press, P. 281
Ebhodaghe, J.A (1999), Agenda for the prevention of bank distress, Ibadan;
African FEB publication Ltd, P. 153.
Ekechi, A. (1995), Implication of the declining market share of banks in
business times (Lagos, daily times of Nigeria Limited
October 26, 1995 P.9
Hancombe. H.M. (1976) Bankers management Handbook United Kingdom,
McGraw Hillbook co; P. 51
Ughamadu N.I (1999) importance of Ban king, Abeokuta spectrum
books Ltd, P. 12.
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