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THE EFFECT OF BANK DISTRESS AND ECONOMIC GROWTH OF NIGERIA

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CHAPTERS:
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CHAPTER ONE

INTRODUCTION

1.1    Background of the Study

1.2     Statement of the Problem

1.3       Objectives of the Study

1.4       Research Questions

1.5       Research Hypotheses

1.6       Significance of the Study

1.7       Scope and Limitations of the Study

1.8       Organization of the Study

1.9       Definition of Terms as Used in the Study

CHAPTER TWO: LITERATURE REVIEW

2.1       Conceptual Review

2.1.1    History and Evolution of Banking in Nigeria

2.1.2    The Role of the Banking Sector in Economic Growth of Nigeria

2.1.3    The Concept of Bank Distress in Nigeria

2.1.4    Definition of Bank Distress

2.1.5    Features of Bank Distress

2.1.6    Classes of Bank Distress

2.1.7    Symptoms of Bank Distress

2.1.8    Emergence of Distressed Banks in Nigeria

2.1.9    Causes and Consequences of Distress in Banks in Nigerian

2.1.10  Implications of Banks Distress on the Nigeria Economy

2.1.11  Possible Solutions to Banking Distress in Nigeria

2.1.12 Concept and Determinants of Economic Growth

2.2       Theoretical Framework

2.3       Empirical Review

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction

3.2       Research Design

3.3       Study Area

3.4       Sources and Types of Data

3.5       Models Specification

3.6       Operational Definition of Variables

3.7       Data Analysis Techniques

3.7.1    Decision Rule

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF

FINDINGS

4.1       Introduction

4.2       Data Presentation

4.3       Data Analysis

4.4       Test of Hypotheses

4.4.1    Hypothesis Number One

4.4.2    Hypothesis Number Two

4.4.3    Hypothesis Number Three

4.5       Discussion of Findings

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1       Summary of Findings

5.2       Conclusion

5.3       Recommendations

5.5       Suggestions for Further Research Work

References

Appendices

LIST OF TABLES

Table 1:  Bank Distress Indicators and Economic Growth in Nigeria

from 1990 to 2016

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Distress in the financial sector is a situation where financial institution has more liabilities than the value of their assets in the market. This can result to portfolio shifts which eventually cause the collapse of the financial system. Bank distress is many times confused with bank failure. In theory, these two terms are different. Bank distress comes before a bank failure. A distressed bank can recover whereas a failed bank has no chance of recovery.

Bank distresses have various unfavorable consequences which among them are on stakeholders and failure of banks. Sometimes the effects are felt by other sectors in the whole economy. A bank failure results to too much damage in the economy. This is because it affects the employment, earnings, financial development and other associated public interest.

Brownbridge (1989) states that in the 1980’s, there was closure of two local banks as well as taking over ten non-banking financial institutions by central bank of NIGERIA. Mamo (2001) also holds that after the financial regulation in 2000, NIGERIA suffered 39 bank failures which cost 10% of its GDP in terms of loans and grants.

Aburime (2009) stresses that bank distress means detrimental condition, immense pain in the banking activities which could be as a result of various factors. Some of these factors include discontinuity, policies and forgeries which are not consistent, mismanagement of poor loans and advances, board members interference and internal control which is poor. Bank distress is caused by bank conditions which may either be extrinsic or intrinsic. Ultimately, bank failure and unpleasant changes in the economic conditions of banks could be observed.

According to Mishra and Aspal (1991), the development of a country’s economy depends more on real factors such as the growth of industries growth and their development, upgrading of agricultural expansion of both internal and foreign trade. In the development of a nation, we cannot under estimate the important role of the banking sector and its financial way of doing things. In economic planning, banks and   financial institutions play a very significant role which is

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