ABSTRACT
In summary
the aim of conducting this research is to investigate into some problems that
are in existence in the banking industry and to suggest possible solution
towards adveving crisis free banking, in Nigeria according the cuts which
constitute crisis are insxhaustible but prominent among them in forgery and
loss of public confidence due to the management attitude. Fowever untrained
staff and those bank staff who now occupy position in the bank contribute more
of distress which leads to banking crisis
CHAPTER ONE
INTRODUCTION
1.1 STATEMENT OF THE PROBLEM
In the light of the vital role which
banks should play in developing the rational economy in their capacity as
vectors of fund for savings investment and employment opportunities. It will be
expendient to point out that Nigerian banking system in all its advancement has
not succeeded yet in affectively achieving this mission
The reason is not just one of the
facts that some banks have failed but there are other problems associated with
them that the researcher seeks to address these problems include:
- The loss of
public confidence in the banking industry due to the crisis in the sector
(Ekezie 1994).
- The short
comings of the regulatory supervisory authorities in banding the crisis (Eh
bokphA 1993)
-
How the ownership structure of distressed bank
contributed to their predicament (Ojir 1998).
There are numerous problems that have
arisen and which constitute crisis in the banking industry and this work will
attempt to solve them.
CRISIS MANAGEMENT IN
BANKING INDUSTRY
1.2
REASON FOR THE STUDY
Crisis in
banking industry is a serious problem which like a public dropped into a pool
of a pool of water affects every aspect of the economy.
1. It has led to
deposite ran: This affects
adversely the liquidity and earning capacity of the banks and consequently
resulting to decline in availability of inventible funds in the economy.
2.
It has led to increase in rates as depositors ask of
higher rates to return for perceived higher changes of bank failure and
conseguem risk of financial loss.
3.
crises in the
banking industry has led to unemployment which leads to fall in
aggregate
demand and consequently a reduction in the production level.
4.
Banks are central to an efficient and effective
payments system in any country with bank failure the payments system would
become precarious, as link between the real and financial sector including
international settlements, would be greatly impaired this would inhibit the
intermediation role of bank and the development of the country (Ojir 1998).
This research work will help the management of banks to manage effectively and
efficient.
CRISIS
MANAGEMENT IN BANKING INDUSTRY
1.3
SIGNIFICANT OF THE STUDY
The researcher hopes to achieve a great thing at the end of
the study. This project will help many that are interested in the banking it
will also help them to do the causes of crisis, how it can be immense benefit
to the following people.
1. Scholar in the field of banking and
finance:
It will
enlighten the students and afford them the opportunity of appreciating the
contribution to wards their study.
2. Bank: It
is of great benefit to banks when they
notice fraud or poor loan management which leads to distress, they will try to
prevent it to avoid liquidation.
3. Future
Researchers: It will serve as a
companion to future researchers who are interested on cause of distress
economic implications and possible remedies.
4. Investor: It will help them to know that distress exist
in banks by so doing they will be careful not to invest in banks were there is
problem of distress.
5. Officials of
regulatory agencies: It will help the
officials of regulatory agencies to know how to prevent distress from
happening.
5.
It will also help to enlighten to public on how
distress has cause a lot of problem in our economy.
1.4
DEFINITION OF TERMS
1.
Crisis: Moment
of great danger faced by banks.
2.
Distressed bank:
A bank managerial operational and financial weakness.
3.
Management efficiency:
Measure of management qualification, competence and achievement.
4.
Bank: This is a
place in which money is kept and paid out on demand where related activity go
on.
5.
Regulatory/supervisory Authorities: This is the Central Bank of Nigeria (CBN) and
nation deposit insurance co-operation (NDIC).
6.
Operators: The
management and staff of a bank including the shareholders.
REFERENCE
John Orjih Seminar banking (1998) and
finance billion.
Okigbo
P.N.C (1981) Nigeria
financial system London Longman published
Federal
Republic of Nigerian (1991) banks and other financial Institution’s Decree N0.
25.
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