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Critical Analysis Of Causes And Problem Of Financial Distress In Nigeria Banking Sector
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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
1930’s 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 OBJECTIVES OF THE STUDY
in writing
this project, the researcher had certain objectives in mind. In 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.
6. To recommend possible ways of preventing financial distress in Nigerian banking sector.
1.4 SIGNIFICANCE OF THE STUDY
This
study will be immense benefits to the Nigerian banking sector. This
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.
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ABSRACT - [ Total Page(s): 1 ]Based on the presentation and analysis of data on the topic CRITICAL ANALYSIS OF CAUSES AND PROBLEMS OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR†the following are the major findings.Inefficient management has contributed significantly to the financial distress in Nigeria banking sector. This was approved statistically with the chi-square test techniques. It was also discovered that fraudulent practices are a big causes of financial distress in Nigeria banking sector. Based on the pres ... Continue reading---
