CAUSES, EFFECTS AND SOLUTIONS TO DISTRESS IN BANKING SECTOR IN NIGERIA A REVIEW OF THE ROLE OF NIGERIA DEPOSIT INSURANCE CORPORATION (NDIC)

ABSTRACT

The   main   write   up   of   this   project   is   to   identify   the   causes,   effects   andsolutions to the problem of distress in banking sector of Nigeria economy. The chapter one deals with the introduction which talks about how bankfailure that is inability of a bank to meet its obligations to its customers, ownersand the   economy  occasioned   by   fault   or  weakness   in  its operation   which   hadrendered it insolvent and bankrupt. The objectives of the study, the scope of thestudy, statement of the problem and limitation of the study are included. Chapter   two   is   the   Literature   Review   which   deals   with   the   Nature   andimplications of a bank classification as “DISTRESSED”. How the deregulationprocess has tremendously increased the tempo of activities of the banking sub-sector. The  major Risk Areas in Banking  and Bank Rehabilitation   Efforts; thegeneral   administration   of   the   affairs   and   business   of   the   corporation   and   theconceptual issues in Distress Management. Chapter three  deals  with the causes  of bank  failure, the effects of Bankfailure and the solutions to distress in Banking. Chapter four talks about the roles of NDIC on the Promulgation and Reviewof   Banking   Decree   and   Guidelines,   in   the   National   Economic,   Financial   andMonetary Management and other roles in Extra Ministerial Committees. Chapter five is the summary and conclusion, Recommendation followed byBibliography.

TABLE OF CONTENT 

(i) Title Page 

(ii)  Certification 

(iii) Dedication 

(iv) Acknowledgement 

(v)      Abstract 

(vi) Table of Contents

 CHAPTER ONE 

1.0 Introduction 

1.1 Background of the study 

1.2  Objectives of the study 

1.3 Scope of the study 

1.4 Statement of the problem 

1.5 Limitation of the study

CHAPTER TWO 7

2.0 Literature Review 

2.1 Nature and Implication of a Bank Classified As Distressed

 2.2 Deregulation Policies 

2.3 Major Risk Areas in Banking 

2.4 Bank Rehabilitation Efforts 

2.5 Administration of the Corporation 

2.6 Conceptual Issues in Distress Management. 

CHAPTER THREE

 3.0 Bank Failure 

3.1.0 Causes of Bank Failure 

3.1.1 Auditors and Directors Involvement in Distressed Bank. 

3.1.2 Analysis and Policy Implication 

3.2.0 Effects of Bank Failure 

3.3.0 The Solutions to Distress in Banking 

3.3.1 The Prudential Guidelines 1990 and the Statement of Accounting Standard (SAS10) 3.3.2 The Failed Bank Tribunal. 8

CHAPTER FOUR

 4.0 The Roles of NDIC 

4.1 NDIC’s Role in the Promulgation/Review of Banking Decree and Guidelines. 

4.2 Publicity of NDIC Operations and Publication of Banking Information.

 4.3 NDIC’s Role in National Economic, Financial and Monerary Management. 

4.4 Encouragement and Support of Banking Practise and Education. 

4.5 Other Roles in Extra-Ministerial Committees. 

CHAPTER FIVE 

5.0 Summary and Conclusion 

5.1 Recommendation.       

 BIBLIOGRAPHY