AN EXAMINATION OF THE TECHNIQUES OF MANAGING FINANCIAL DISTRESS IN THE NIGERIA BANKING INDUSTRY
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ABSTRACT
The researcher examines the technique of managing financial distress in the Nigerian banking industry. The researchers purpose of study among other.
To examine bank recapitalisation as a technique of managing distress in the banking industry.
To examine debt recovery and cost reductive as a technique of managing distress in the banking industry.
To examine bank acquisition and merger as technique of managing distress in the Nigeria banking industry.
The researcher collected the necessary data through structural questionnaire and oral interview. In analyzing the data collected, the researcher made use of textual and tabular presentation.
In both case chi-square and simple percentage where the major tools used for data ananlysis.
The findings revealed among other things.
(1) That bank needs to be recapitulated.
(2) That two or more distressed banks need to merge to from a new, strong and healthy one.
(3) That banks need to recover their debts to ensure their continuing existence.
A strong bank should take over a small and weak bank to enhance its survival and performance. It was also discovered that excessive operational cost is one of the factors that led to bank distress.
TABLE OF CONTENTS
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.4 RESEARCH QUESTION
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF STUDY
1.7 SCOPE, LIMITED AND DELIMITATIONS
1.8 DEFINITION OF TERMS
REFERNCE
CHAPTER TWO
2.0 REVIEW OF RELATED LITERATURE …………………………
2.1 INTRODUCTION TO EXAMINATION OF THE
TECHNIQUES OF MANAGING FINANCIAL
DISTRESS IN THE NIGERIAN BANKING INDUSTRY.
2.1 BANKING RECAPITALIZATION…………………………………..
2.2 THE ROLE OF CAPITAL IN BANKING…………………………….
2.3 COMPONENTS OF BANK CAPITAL………………………………
2.4 MAJOR OPTIONS IN BANK RECAPITALISATION………………
2.5 FOREIGN INVESTMENT OPTION IN BANK RECAPITALISATION……………………………………………….
2.6 DEBT RECOVERY AND COST REDUCTION…………………….
2.7 LOAN RECOVERY STRATEGICS ……………………………….
2.8 BANK AQUSITION AND MERGER ………………………………
2.9 RESTRUTURE AND SELL OPTION
REFERENCE
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLGY
3.1 RESEARCH DESIGN
3.2 METHODS OF INVESTIGATION
3.3 RESEARCH POPULATION
3.4 SAMPLING SIZE DETERMINATION
3.5 SAMPLE TECHNIQUES
3.6 RESEARCH INSTRUMENT USED
3.7 METHOD OF PRESENTATION
3.8 TECHNIQUES OF DATA ANANLYSIS
CHAPTER FOUR
4.0 PRESENTATION OF DATA AND ANANLYSIS
4.1 DATA PRESENTATION ANANLYSIS
4.2 TESTING OF HYPOTHESIS
CHAPTER FIVE
5.0 FINDINGS, CONCLUSION AND RECOMMENDATION
5.1 FINDINGS
5.2 CONCLUSION
5.3 RECOMMENDATION
BIBILIGRAPHY
APPEDIX
(1) LETER TO THE RESPONDENTS
(2) QUESTIONNAIRES
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
The issue of financial distress in the Nigerian banking industry has became the ‘Conequences of bnak failures, the problem has became a major source of concern to the government, the regulatons of financial institutions and to the general public. The experience of Nigerians during the first era of bank failures in Nigerian between 1953 to 1959 was such that generated understandable apprehension among the banking public. Unfortunately, the problem has reducing up till now in the Nigerian financial system. Also distress in Nigerian banking system is a phenomenon that must be tackle with every amount of Vigour in order to minimize its occurrence in the economy.
Although, Nigerian thought this was a good own for the economy, it soon downed on them that the perceived boom was a mirage and gross mismanagement. The increasing number of distress in the nations banking industry has impacted negatively on the economy by slowing down the tempo of business activities. The courage also effects some government and some healthly banks which have cost some of the confidence which they had enjoyed before the issue of banking distress become pronounced.
1.2 STATEMENT OF PROBLEMS
Financial distress in the Nigeria banking industry will therefore occure when a fairly reasonable proportion of banks in the system are unable to meet their obligations to their customer as well as their owners and the economy as a result of weakness in their financial, operational and managerial condition which have rendered them either insolvent. Also is a situation in which a sizable
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