PROPOSAL/ABSTRACT
Effect of bank failure and economic development in
Nigerian
Banks occupy the most strategic point in the
financial system of the economy for a total of bank to fait between 1992 to
2002 a space of four years, means that something definitely is wrong.
This study is not antagonistic of any other rather
it is complementary. Others works have to been used here and duty acknowledge
but everything is with an intent to find a lasting solution to the issue of
bank failure.
The study
will be base upon data collected through information sifted from books
journals annuals, periodicals. All the relevant data obtain during the
collection is going to be analyze generally ad used to deduce the findings.
In the process of this project, certain questing
have to be asked. Solution proffered and prospects for the failure explain but
none of them seems to have solved the problem. The research questions are thus
is it the inadequate attention accorded to un-organized private sector in
favour of the organized sector (especially the merchant banks). Is it the
erosion of their capital base due to inflationary trends in the economy not
enough? Is it due to lack of technical expertise in most banks? And is it due
to poor internal control systems and the rate at which banld 90 in liquidation?
In respect of all this question, the researcher
discover that Nigeria economy is still under developed one and will take the
astuteness of every single Nigeria to get it out of the doldrums. In the
researcher view, it is only when the economy become stablemen when failure
might not be enbirdy absent but reduced
to rate.
The researcher as taken a measure, that every me
has to play a role and not only the authorities.
TABLE OF CONTENT
Title page
Dedication
Acknowledgment
Abstract
Table of content
CHAPTER ONE
1.0 Introduction
1.1 The background of the study
1.2 Statement of the problem
1.3 Objective of the study
1.4 Project question
1.5 Significant of study
1.6 Limitation of study
CHAPTER TWO
2.0 Review
of related literature
2.1 The genesis of banking in Nigeria
2.2 Types of banking institute in Nigeria
2.3 The roles of banks in Nigeria economic development
2.4 Causes of bank failure
2.5 Effect of bank failure on Nigeria economy
CHAPTER THREE
3.0 Research design and methodology
3.1 Sources
of data (Secondary data only)
3.2 Location of data
3.3 Methods of data collections
CHAPTER FOUR
4.0 Findings
and discussion
CHAPTER FIVE
5.1 Recommendation and conclusion
5.2 Recommendation
5.3 Conclusion
CHAPTER ONE
1.0 INTRODUCTION
1.1 THE BACKGROUND OF THE STUDY
Over the last couple of decades the Nigeria almost
crude form it has characterized with in pre-colonial and colonial dry. It has
become sophisticated that economic experts today can proudly thump their chests. With due regard to
ownership structure of the institution, the regulatory framework, the
instrument employed and number of established institutions, Nigeria can be said to posses the most
sophisticated financial system in Africa.
Within the Nigeria financial system itself, the
banking institution have been most remarkable in growth this is just as well in
any case considering the critical position which they occupy in a complex
financial position which supplies the money and cridit needs of the economy.
The world bank nor banker is neither used nor
declined in the central of Nigeria (CBN) Decree No 24 of 1991 nor bank and
other financial institution Decree (BOFIO) No 25 of 1991 but section 2 of bill
of exchange act 1881 provides that bankers include a body of persons whether
incorporated or not who carry out the business of banking section 2 (1) of the
Evidence act defines banks bankers to means “any person or persons, partnership
or company carrying on the business of bankers.
In view of these highlights, it becomes easily
comprehensible why the failure of a bank has fare reading consequences the
ability of bank to operate successfully
rest upon how well they are able obtain the contidence of the public if
that confidence is missing the gap will be too great for the banks to fill the effects of bank failure on
economic development of Nigeria can be expressed in a nut-shell to be the
following.
a. Lack of effective and efficient financial intimidation
b. Loss of public confidence in the system further depression of
the economy additional burden on the regulatory authorities escalation of social
vices.
For the sake of citizenry and in the interest of economic
development there is as expedient need to devise a host of remedying situation.
The fact that a bank fail today is not to say that incidence
is systemic there must be a number of way out of any sad predicament. The only
crack is how will these remedies are frothily employed such remedies would
include:-
a.
The cultivation of a stable political
environment.
b.
The strengthening of regulatory agencies
c.
The taking over by regulatory bodies of all
terminally distressed banks.
d.
Privatization and commercialization of all
government owned bank
e.
All debt owned bank by government (state,
federal and even parietals) should be paid back immediately.
f.
All laws relating to bankrupting and default
should be reviewed and made more function.
g.
Encouragement of banking education.
1.2 STATEMENT OF THE PROBLEM
In light of the vital role which bank play in
developing the national economy in their capacity as vectors of found for
savings, investment and employment opportunities it will be expedient to point
out that Nigeria banking system in all its advancement and sophisticated has
not succeeded get in effectively achieving this mission. The reason is not just
one of the fact some bank have failed but some factor have continued to
meditate against the successful performance of banks. The problems of economic
under development in Nigeria can arguably traced to the fact that bank have not
been as efficient as they ought to be then the effect of bank failure on
Nigeria economic development range from loss of depositors funds to less of
confidence (which the spring-board on
the business of banking to a total lack of effective financial intermediation,
such as reduced lending to the priority sector of the economy and a using
incidence of distress in other
sub-sector.
But the cause of bank failure is as a result of
incomplete management, capital inadequacy, and poor internal control. Poor
asset quality competition and such factors as economic environment and
government.
1.3 OBJECTIVE OF THE STUDY
The objective of this study is to review the
effects of bank failure on Nigeria economic development.
·
To highlight
the implication on the depositor, the general public the affected bank the
entire banking industry and general macro economy.
·
Also to reveal
the prospects of banking in future.
·
To find a
lasting solution to bank failure.
1.4 PROJECT QUESTION
In the process of this project contain question
asked solution proffered and prospect for the future but none seem to have the
problem the question now are as follows:-
·
Is if the
inadequate attention accorded to unorganized private section.
·
Is it the
erosion of their capital base due to inflationary trends in the economy not
enough?
·
Is it due to
lack of technical expertise in most banks?
·
Is it due to
poor internal control system and the rate at which bank go in liquidation?
·
Could the
effect off bank failure be accorded to the economy situation?
·
Is it the
under development condition of the country?
·
The effect of
bank failure is it due to poor supervisory by the CBN.
1.5 SIGNIFICANT OF STUDY
The study is significant is that a careful reviews
with an intent to reveal the genesis of the effect of bank failure in Nigeria economy the root
causes of bank failure, how to avert bank failure and in the event of an
inability to overt this, how to deal with situation effectively.
Also, the study will be immense benefit to
scholars in the field of banking and intellectual in the field of banking.
1.6 LIMITATION OF STUDY
The sensitive nature of the topic made it
difficult to obtain some very vital information’s from banks like their annual
journal or annual report.
Another constraint was that the executive of some
bank which are under liquidation may not want to be publish in magazine and
report there by limiting the researcher information’s.
And the most telling constraint in time the time
on hand was very limited. It was not easy to lay hand on all the secondary data
which the researcher required.
And the last constraint was finance the
researcher-required money to enable him move from one place to the other for an
effective research and to buy material like newspapers or magazines.
REFERENCES
Cooper N.C (1991) Monday Theory and Policy in an Open
Economy Scandinavia Journal of 78 No
12. P. 104.
Alabi S.O (1990) Bop and Foreign Exchange Guardian
Financial Weekly S.
P. 92.
Boyer E.P (1976) Practice of Banking Macdondel and
Evan Ltd
P. 63.
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