Brief Introduction

Financial distress in the Nigeria Financial system is a Problem that has recently assumed an intractable dimension. However, before delving into the details of this write-up, let me digress a little by asking this hypothetical question, “What do we mean by bank failure”? This question can only be adequately answered by attempting to give an explanation for what bank failure means within the context of this write-up.

Connotatively, failure in banks can be described as “Inability of a bank to meet its obligations to its customers, owners and the economy occasioned by fault or weakness in its operation which had rendered it insolvent and bankrupt.

With this broad definition, it also includes the deliberate refusal by the owners and the operators of the bank especially the board and management to adhere to set roles and approved procedure, the effect of which had resulted to the collapse of the bank.

The situation is such that the regulatory authorities appear to be fighting a lost battle in their bid to sanitize the system. The phenomenal growth of banks following the introduction of the “Structural Adjustment Programme” (SAP) creates a false impression that banking is an all-comers business.

Table of Content

Title Page
Certification
Dedication
Acknowledgment
Abstract
Table of Contents

CHAPTER ONE
Introduction
Background of the study
Objectives of the study
Scope of the study
Statement of the problem
Limitation of the study.

CHAPTER TWO
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.

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 Monetary 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.