The Causes and Remedy for Bank Distress in Nigeria
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DISTRESS IN THE NIGERIAN BANKING INDUSTRY:
A CRITICAL ASSESSMENT OF ITS NATURE, CAUSES AND EXTENT. BY DR.SANI A.ABDULLAHI DEPARTMENT OF BUSINESS ADMINISTRATION
AHMADU BELLO UNIVERSITY, ZARIA Abstract
In recent times, instability in the financial system and the banking sector in particular has arisen from institutional failures as in the past. In Nigeria, the lesson of the earlier bank failures appeared to have been forgotten as generalized distress swept the banking sub-sector and systemic distress gripped the finance house sub-sector. This study assesses the distress phenomenon and empirically analyses the extent of distress in the banking industry as well as the major causes. The study involves over 506 respondents made up of 236 from the banks, 160 corporate customers, 105 individual customers plus 5 from the regulatory agencies in the industry. Data for the study was drawn from both primary and secondary sources. The questionnaire instrument was used in collecting data for the study. The data generated was analysed using simple descriptive statistics (frequency analysis) and percentage. The study confirmed the presence of distress in the banking industry, but generalized that the distress could not be described as systematic since a good number of banks remain healthy to which many customers “flown for safety”. On the whole, 80.9% of the banks are believed to be healthy, 11.1% believed to be mildly distressed, and 8.09% confirmed to be severely distressed.
All the major factors causing distress namely institutional, economic, and political etc contributed in varying degrees to
Top of FormBottom of Form | | Popular Searches: bed and breakfast sporting goods rentals | | |
DISTRESS IN THE NIGERIAN BANKING INDUSTRY:
A CRITICAL ASSESSMENT OF ITS NATURE, CAUSES AND EXTENT. BY DR.SANI A.ABDULLAHI DEPARTMENT OF BUSINESS ADMINISTRATION
AHMADU BELLO UNIVERSITY, ZARIA Abstract
In recent times, instability in the financial system and the banking sector in particular has arisen from institutional failures as in the past. In Nigeria, the lesson of the earlier bank failures appeared to have been forgotten as generalized distress swept the banking sub-sector and systemic distress gripped the finance house sub-sector. This study assesses the distress phenomenon and empirically analyses the extent of distress in the banking industry as well as the major causes. The study involves over 506 respondents made up of 236 from the banks, 160 corporate customers, 105 individual customers plus 5 from the regulatory agencies in the industry. Data for the study was drawn from both primary and secondary sources. The questionnaire instrument was used in collecting data for the study. The data generated was analysed using simple descriptive statistics (frequency analysis) and percentage. The study confirmed the presence of distress in the banking industry, but generalized that the distress could not be described as systematic since a good number of banks remain healthy to which many customers “flown for safety”. On the whole, 80.9% of the banks are believed to be healthy, 11.1% believed to be mildly distressed, and 8.09% confirmed to be severely distressed.
All the major factors causing distress namely institutional, economic, and political etc contributed in varying degrees to