BANK FAILURE: CAUSES AND CONSEQUENCES

ABSTRACT
 Bank failure in our banking industry has become a peculiar household word in this country, which cannot be overemphasized. It is a re-current issue, which has caused untold hardship to collective individuals, individual, stakeholders. This ugly scene has paved way for losses of staggering sum of money and investment by some banks.
As a matter of facts, Banks distress has significantly contributed to the bank failure of some banks. This project work examined the trend that lead to the Bank failure and moreover, some Bank staff have lost their jobs and single benefits. The confidence the public has on the bank is speedily warning down and many bank customers comment bitterly about this fact or issue.
The project surveyed the literature in the causes and consequences of bank failure, impact of bank failure, the remedies and the measures to control the incident of bank failure in the banking sector and the investigator concluded that the causes of bank failure comes under the following headings. Insider’s abuse, fraud and forgeries, inexperience staffing, poor attitude of bank management, recruitment of staff with low level academic qualifications, and high level of dishonesty among staff.
Specially, the objectives of the study are;
To determine whether bank failure still exist in the banking industry
To determine examine the causes and consequences of bank failure on Nigeria banking industry.
Determine to understand the degree of concern the bank management have shown in trying to prevent failure of banks.
To identify some of the enabling laws by the supervisory authorities to ensure depositors funds incase of bank failure.
To x-ray the poor accounting procedures adopted by the bank management staff.
To accomplish these objectives, a historical survey research design was conducted. Data were sourced only from secondary source, without questionnaire been used as an instrument of data collection.
Data collected were used to form the literature review by the researcher, and upon the literature review, findings, recommendations and conclusion was based by the researcher.


TABLE OF CONTENT

CERTIFICATION                                                                         
DEDICATION                                                                               
ACKNOWLEDGEMENT                                                             
ABSTRACT                                                                                     
TABLE OF CONTENT  
                                                                 
CHAPTER ONE
1.0 INTRODUCTION
1.1.1 BACKGROUND OF THE STUDY: GLOBAL HISTORY OF BANK FAILURES AND NIGERIA EXPERIENCE
1.1.2 HISTORICAL DEVELOPMENT OF BANKING IN NIGERIA WITH SHORT PERIOD OF MASS FAILURE OF INDIGENOUS BANKS.
1.2 STATEMENT OF THE PROBLEM.
1.3 OBJECTIVE OF THE STUDY.
1.4 SIGNIFICANCE OF THE STUDY.
1.5 SCOPE AND LIMITATION OF THE STUDY.
1.6 DEFINITION OF IMPORTANT TERMS
REFERENCES

CHAPTER TWO 
2.0 REVIEW OF RELATED LITERATURE- INTRODUCTION
2.1 DEFINITIONS OF BANK
2.1.1 DEFINITION BY TEXTBOOK WRITERS
2.1.2 STATUTORY DEFINITION
2.1.3 VIEW EXPRESSED BY THE COURTS
2.2 CONCEPTUAL FRAMEWORK
2.3 MEANING OF BANK FAILURE/CASE FOR BANK FAILURE
2.4 CAUSES OF BANK FAILURES IN THE NIGERIA BANKING INDUSTRY.
2.4.1 MACROECONOMIC ENVIRONMENT
2.4.2 BAD LOANS/DECLINE IN THE VALUE OF SECURITIES OWNED BY THE BANKS.
2.4.3 ASYMMETRIC INFORMATION
2.4.4 WEAK MANAGEMENT
2.4.5 FRAUD AND FORGERIES
2.4.6 POLITICAL INTERFERENCE/ADVERSE ECONOMIC ENVIRONMENT
2.4.7 INAPPROPRIATE CORPORATE GOVERNANCE STRUCTURES
2.5 RECENT DEVELOPMENT IN FINANCIAL SERVICES SECTOR AND BANK FAILURES IN NIGERIA
2.5.1 DEPOSITS IN THE BANKING SYSTEM.
2.5.2 RENDITION OF UNRELIABLE STATUTORY RETURNS.
2.5.3 BANKING SECTOR DISTRESS.
2.6 REGULATORY AUTHORITIES EFFORTS AT ADDRESSING ISSUES OF FINANCIAL/BANK SECTOR FAILURES.
2.7 CONSEQUENCES OF BANK FAILURES.
2.7.1 CONSEQUENCE OF BANK FAILURE ON THE SHAREHOLDERS.
2.7.2 CONSEQUENCES OF BANK FAILURE ON BANKING INDUSTRY.
2.7.3 CONSEQUENCES OF BANK FAILURES ON DEPOSITORS/BANK CUSTOMERS.
2.7.4 CONSEQUENCES OF BANK FAILURES ON THE ECONOMY
2.7.5 CONSEQUENCES OF BANK FAILURE ON GOVERNMENT
2.8 CONTROL MEASURES OF BANK FAILURES
REFERENCES

CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 INTRODUCTION
3.2 SOURCES OF DATA
3.3 SECONDARY SOURCES OF DATA
REFERENCES

CHAPTER FOUR
4.0 INTRODUCTION
4.1 FINDINGS

CHAPTER FIVE
5.1 CONCLUSION AND RECOMMENDATIONS.
BIBLIOGRAPHY
APPENDIX A
APPENDIX B

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APA

Research, A. (2018). BANK FAILURE: CAUSES AND CONSEQUENCES. Afribary. Retrieved from https://afribary.com/works/bank-failure-ldquo-causes-and-consequences-rdquo

MLA 8th

Research, Afri "BANK FAILURE: CAUSES AND CONSEQUENCES" Afribary. Afribary, 03 Feb. 2018, https://afribary.com/works/bank-failure-ldquo-causes-and-consequences-rdquo. Accessed 19 Apr. 2024.

MLA7

Research, Afri . "BANK FAILURE: CAUSES AND CONSEQUENCES". Afribary, Afribary, 03 Feb. 2018. Web. 19 Apr. 2024. < https://afribary.com/works/bank-failure-ldquo-causes-and-consequences-rdquo >.

Chicago

Research, Afri . "BANK FAILURE: CAUSES AND CONSEQUENCES" Afribary (2018). Accessed April 19, 2024. https://afribary.com/works/bank-failure-ldquo-causes-and-consequences-rdquo