FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

TABLE OF CONTENTS    

CHAPTER ONE
INTRODUCTION
1.1     Background to the Study                                   1
1.2     Statement of the problem                                             5
1.3     Aim and Objectives of the Study                                  6
1.4     Significance of the Study                                            7
1.5     Research Questions                                                   8
1.6     Scope of the Study                                            8
1.7     Limitations of the Study                                               9
1.8     Study Plan                                                                 10
1.9     Definition of Key Terms                                             11
CHAPTER TWO
LITERATURE REVIEW

• Meaning of Fraud                                                      13
• Management Control  Measures on Fraud                   16
• Types of Fraud                                                          18
• Causes of Fraud                                                       22

2.5     Method of Preventing Fraud                                      28
2.6     Current Fraud Practices in Nigeria                              30
2.7     Cheque Frauds                                                         33
2.8     Fraud Control Variables                                              37
2.9     Prudential Guidelines for Banks                                  43

CHAPTER THREE
RESEARCH METHODOLOGY

• Historical Profile of Nigerian Banking Industry           45
• Research Hypotheses                                               50
• Data Specification                                                    52
• Method of Data Collection                                         52
• Method of Data Analysis                                  53

CHAPTER FOUR:   DATA PRESENTATION AND ANALYSIS

• 4.1 Total Amount involved in Fraud and Forgeries           54
• 4.2 Total Expected loss in Fraud and Forgeries               56

4.3     Total Cases in Fraud and Forgeries                           57
4.4     Staff Involvements in Fraud and Forgeries                 58
4.5     Test of Hypotheses                                                  59

CHAPTER FIVE: SUMMARY, CONCLUSION AND  RECOMMENDATIONS

• Summary                                                                68
• Conclusion                                                              70
• Recommendations                                                   71

References                                                                      74

CHAPTER ONE

INTRODUCTION
1.1 Background to the Study
The level of fraud in the present day Nigeria has assumed an epidemic dimension. It has eaten deep into every aspect of our life to the extent that a three old child talks about yahoo mail or 419, newly discovered sobriquet for advanced free fraud that is hunting our banking industry. Nigeria, with all of its natural and human resources tethers on the brink of destruction because of fraud. Much of what we do is “cutting leaves” instead of dealing with the root problem.
Generally, fraud takes its roots from the human heart. It is an axiom that the heart is deceitful above all things and is desperately wicked. Fraud is the number one enemy of the business world, no company is immune to it and it is in all works of life, Nwankwo (1991). The fear is now rife that the increasing wave of fraud in the financial institutions in recent years, if not arrested might pose certain threats to stability and the survival of individual financial institution and the performance of the industry as a whole and no area of the economy is immune from fraudsters and even the banking system. Fraud if not checked might cause run on in the banking sector.
        

  The existence of financial intermediaries automatically takes care of the sizes of fund existing in the economy. Financial intermediaries are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector of the economy (government, business enterprise) by mobilizing the surplus sector of the economy to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate. Examples of financial institutions we have in Nigeria are: Banks, Insurance companies, savings and loans.
The major problems confronting the financial institution today is “fraud”, which has sent many of them out of business and is making the industry customers to loose confidence in them since, since they have not been able to curb the ugly event called “fraud”.

The annual report of the Nigeria Deposit Insurance Corporation (NDIC) over the year indicates that bank fraud remains unabated and this still threatens the well-being of the banking industry. NDIC warns the nation year after year about dangers posed to the banking sector by fraud and also explained to the players in the industry that the sad and unfortunate incidence of increasing frauds and forgeries in the industry will not only deplete the banks capital but will contribute to the erosion of depositors confidence in the system. Before 1986, banks reporting cases on fraud were of no consequence. Returns were very low or just moderate, the number of banks was few and salary levels were low compared to other sectors of the economy.
By and after 1986, with the introduction of Structural Adjustment Programme (SAP) profits rose to high levels returns on investment rose, salaries became more attractive and public attention to banking increased.

By 1989, some banks recorded 3105 million frauds with commercial banks having 392.2 million and merchant banks having 37 million, (References to Business Times of 20th August, 1990).
Fraud as defined by Olufidipe (1994) as “Deceit or trickery deliberately practiced in other to gain some advantage dishonestly”. Fraud is a hydra headed phenomenon that displays its presence in different forms. Such various form includes: money transfers fraud, fraudulent lending, cheque kitting, transaction fraud, letter of credit fraud, borrowing from the till, Anti-money laundering, credit and debit card fraud, first party fraud, internet fraud to mention but a few.

Fraud does not just happen, but perpetrate by human beings with reasons or motivations. The two main causes of fraud are both external and internal factors. Bank fraud and robbery are manifestations of deviant social behaviour. Today, the rising trend in bank fraud and robbery can be traced to certain antecedents of the contemporary society. In Nigeria of recent years and today, there is prevalent moral decadence reflecting fast weakening and debased value system. For example, wealth, irrespective of its source now commands a high premium in Nigerian society.
The internal cause of fraud today in the banking industry can be traced to the following internal environmental factors: corrupt or weak management, ineffective control system, poor personnel practices, shortage of experienced and expertised staff, because the installation and day-to-day implementation of a bank are the responsibilities of the top management of the bank. Infact, as affirmed by Comer (1985), “the scale of fraud in an organization is a reflection of the ability of its managers to manage”, i.e. in a bank where the top management is known to engage in corrupt banking practices, fraud will be common among the junior staff.

To minimize or control the alarming rate of fraud in the banking industry, there ought to be need for the players in the industry to set up and implement an effective and efficient control system that will adequately monitor the daily activities of the industry without leaving any gap. Consequently, appropriate personnel policies and practices should be put in place since fraud is committed by people of moral decadence.

1.2     Statement of the Problem
The problem which militates against fraud management in the banking industry which this study seeks to profer solution to are:

• Lack of efficient and effective internal control system in the banks.
• Inability of the bank officials to consistently follow the established banks procedures in the course of their operation.
• Inadequate training opportunities to the bank officials on fraud detection.
• Non availability of developed process of identifying fraud, related control designed to minimize the risk involved constantly, review and update.
• Lastly, ineffective physical control system of operation.

1.3     Aim and objectives of Study
The aim of the study is to examine fraud management in Nigerian banking industry. The objectives of the study includes the following:

• To explain what is meant by the term fraud.
• To describe the various types of fraud.
• To identify and explain causes of fraud in Nigerian banking industry.
• To examine fraud and forgeries cases in Nigeria.
• To make recommendations as to how fraud and forgeries can be drastically reduced if not totally eradicated in Nigerian banking industry.

1.4     Significance of the Study
This research work will educate the general public as to the following:

• Meaning of fraud
• The causes of fraud
• The types of fraud
• The role of auditors and other measures to minimize the cause, preventing and control of fraud.

Through this study, bank customers would be sensitized and be caution in dealing with the bank as to the occurrence of fraud.
Also, the officials of the bank would be educated to be cautious when rendering their services and help their customers against fraud.
It is essential to note that fraud can erode the assets of the banks thereby causing the untimely death of the bank, if not controlled or minimized. Hence, this study will be relevant to the banking industry to help check fraud.

1.5 Research Questions

To guide the conduct of this research, the following questions are raised:

• What is meant by the term fraud and forgeries?
• What are the various types of fraud in Nigerian banking industry?
• What are the causes of fraud on the Nigeria economy?
• What are the various method of fraud prevention?

1.6     Scope of the Study
The scope of the study is to examine critically fraud management in the Nigerian banking industry (2000-2008). The study also covers nature of fraud, types, causes, management control measures and effects of fraud on Nigerian economy.

1.7     Limitations of the Study
The major problems encountered in carrying out this research work are:

1.       Due to annual upgrade of SPSS package, it took the researcher a lot of time and effort to get the recent, compatible and suitable version for the research work
2.       Negative attitude of the government officials in given out needed data.
3.       Due to the hectic nature of CBN, NDIC officials, the researcher have to pay several visits to these places which cost time and money.
4.       Also, some information were being coded by the organisations’ which was not released to the researcher.
However, effort has been made to ensure that this situation does not hinder the completion and quality of the research work.

 1.8 Study Plan

This study will be presented in five chapters. The first chapter is the introduction which includes background, statement of the problem, aim and objectives, significance, research questions, scope, limitations, study plan and definition of key terms.
The second chapter focuses on the review of related literature on the meaning of fraud, management control measures on fraud, types of fraud, causes of fraud, method of preventing frauds, current fraud practices in Nigeria, cheque frauds, fraud control variables and prudential guidelines for banks.
Chapter three constitutes discussion on research methodology that is, historical profile of Nigerian banking industry, research hypotheses, data specification, method of data collection and method of data analysis.
Chapter four is made up of data presentation and analysis.
Chapter five comprised of summary, conclusion and recommendations.

1.9     Definition of Key Terms
1.       Financial Intermediaries: They are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector (government, business enterprises) by mobilizing the surplus sector to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate.
2.       Depositors: Someone who deposits money in a bank or building society especially in a deposit account.
3.       Financial Institution: Banks, insurance companies, savings and loans.
4.       Customer: Someone who uses the services of a business.
5.       Bank: Financial organization which keeps money in accounts
for its client, lends money and exchanges currency.
6.       Bankrupt: Someone who deposits money in a bank or building society especially in a deposit account.
7.       Management: The skill or practice of controlling, directing or planning something especially a commercial enterprises or activity.
8.       Money Transfer Fraud: They are money transfer service in which funds are moved to or from a bank to a beneficiary account at any banking point nationwide in accordance with the instructions from the bank’s customer.
9.       Letter of Credit: It’s a credit instrument given by a bank whereby it undertakes to make payment or assures the beneficiary that payment will be made subject to the term of the credit.

10.     Cheque Kiting Fraud: It is the building up a large apparent balance in one or more bank account based on uncollected cheques drawn against similar accounts in other sometimes distant banks.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

TABLE OF CONTENTS    

CHAPTER ONE
INTRODUCTION
1.1     Background to the Study                                   1
1.2     Statement of the problem                                             5
1.3     Aim and Objectives of the Study                                  6
1.4     Significance of the Study                                            7
1.5     Research Questions                                                   8
1.6     Scope of the Study                                            8
1.7     Limitations of the Study                                               9
1.8     Study Plan                                                                 10
1.9     Definition of Key Terms                                             11
CHAPTER TWO
LITERATURE REVIEW

• Meaning of Fraud                                                      13
• Management Control  Measures on Fraud                   16
• Types of Fraud                                                          18
• Causes of Fraud                                                       22

2.5     Method of Preventing Fraud                                      28
2.6     Current Fraud Practices in Nigeria                              30
2.7     Cheque Frauds                                                         33
2.8     Fraud Control Variables                                              37
2.9     Prudential Guidelines for Banks                                  43

CHAPTER THREE
RESEARCH METHODOLOGY

• Historical Profile of Nigerian Banking Industry           45
• Research Hypotheses                                               50
• Data Specification                                                    52
• Method of Data Collection                                         52
• Method of Data Analysis                                  53

CHAPTER FOUR:   DATA PRESENTATION AND ANALYSIS

• 4.1 Total Amount involved in Fraud and Forgeries           54
• 4.2 Total Expected loss in Fraud and Forgeries               56

4.3     Total Cases in Fraud and Forgeries                           57
4.4     Staff Involvements in Fraud and Forgeries                 58
4.5     Test of Hypotheses                                                  59

CHAPTER FIVE: SUMMARY, CONCLUSION AND  RECOMMENDATIONS

• Summary                                                                68
• Conclusion                                                              70
• Recommendations                                                   71

References                                                                      74

CHAPTER ONE

INTRODUCTION
1.1 Background to the Study
The level of fraud in the present day Nigeria has assumed an epidemic dimension. It has eaten deep into every aspect of our life to the extent that a three old child talks about yahoo mail or 419, newly discovered sobriquet for advanced free fraud that is hunting our banking industry. Nigeria, with all of its natural and human resources tethers on the brink of destruction because of fraud. Much of what we do is “cutting leaves” instead of dealing with the root problem.
Generally, fraud takes its roots from the human heart. It is an axiom that the heart is deceitful above all things and is desperately wicked. Fraud is the number one enemy of the business world, no company is immune to it and it is in all works of life, Nwankwo (1991). The fear is now rife that the increasing wave of fraud in the financial institutions in recent years, if not arrested might pose certain threats to stability and the survival of individual financial institution and the performance of the industry as a whole and no area of the economy is immune from fraudsters and even the banking system. Fraud if not checked might cause run on in the banking sector.
        

  The existence of financial intermediaries automatically takes care of the sizes of fund existing in the economy. Financial intermediaries are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector of the economy (government, business enterprise) by mobilizing the surplus sector of the economy to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate. Examples of financial institutions we have in Nigeria are: Banks, Insurance companies, savings and loans.
The major problems confronting the financial institution today is “fraud”, which has sent many of them out of business and is making the industry customers to loose confidence in them since, since they have not been able to curb the ugly event called “fraud”.

The annual report of the Nigeria Deposit Insurance Corporation (NDIC) over the year indicates that bank fraud remains unabated and this still threatens the well-being of the banking industry. NDIC warns the nation year after year about dangers posed to the banking sector by fraud and also explained to the players in the industry that the sad and unfortunate incidence of increasing frauds and forgeries in the industry will not only deplete the banks capital but will contribute to the erosion of depositors confidence in the system. Before 1986, banks reporting cases on fraud were of no consequence. Returns were very low or just moderate, the number of banks was few and salary levels were low compared to other sectors of the economy.
By and after 1986, with the introduction of Structural Adjustment Programme (SAP) profits rose to high levels returns on investment rose, salaries became more attractive and public attention to banking increased.

By 1989, some banks recorded 3105 million frauds with commercial banks having 392.2 million and merchant banks having 37 million, (References to Business Times of 20th August, 1990).
Fraud as defined by Olufidipe (1994) as “Deceit or trickery deliberately practiced in other to gain some advantage dishonestly”. Fraud is a hydra headed phenomenon that displays its presence in different forms. Such various form includes: money transfers fraud, fraudulent lending, cheque kitting, transaction fraud, letter of credit fraud, borrowing from the till, Anti-money laundering, credit and debit card fraud, first party fraud, internet fraud to mention but a few.

Fraud does not just happen, but perpetrate by human beings with reasons or motivations. The two main causes of fraud are both external and internal factors. Bank fraud and robbery are manifestations of deviant social behaviour. Today, the rising trend in bank fraud and robbery can be traced to certain antecedents of the contemporary society. In Nigeria of recent years and today, there is prevalent moral decadence reflecting fast weakening and debased value system. For example, wealth, irrespective of its source now commands a high premium in Nigerian society.
The internal cause of fraud today in the banking industry can be traced to the following internal environmental factors: corrupt or weak management, ineffective control system, poor personnel practices, shortage of experienced and expertised staff, because the installation and day-to-day implementation of a bank are the responsibilities of the top management of the bank. Infact, as affirmed by Comer (1985), “the scale of fraud in an organization is a reflection of the ability of its managers to manage”, i.e. in a bank where the top management is known to engage in corrupt banking practices, fraud will be common among the junior staff.

To minimize or control the alarming rate of fraud in the banking industry, there ought to be need for the players in the industry to set up and implement an effective and efficient control system that will adequately monitor the daily activities of the industry without leaving any gap. Consequently, appropriate personnel policies and practices should be put in place since fraud is committed by people of moral decadence.

1.2     Statement of the Problem
The problem which militates against fraud management in the banking industry which this study seeks to profer solution to are:

• Lack of efficient and effective internal control system in the banks.
• Inability of the bank officials to consistently follow the established banks procedures in the course of their operation.
• Inadequate training opportunities to the bank officials on fraud detection.
• Non availability of developed process of identifying fraud, related control designed to minimize the risk involved constantly, review and update.
• Lastly, ineffective physical control system of operation.

1.3     Aim and objectives of Study
The aim of the study is to examine fraud management in Nigerian banking industry. The objectives of the study includes the following:

• To explain what is meant by the term fraud.
• To describe the various types of fraud.
• To identify and explain causes of fraud in Nigerian banking industry.
• To examine fraud and forgeries cases in Nigeria.
• To make recommendations as to how fraud and forgeries can be drastically reduced if not totally eradicated in Nigerian banking industry.

1.4     Significance of the Study
This research work will educate the general public as to the following:

• Meaning of fraud
• The causes of fraud
• The types of fraud
• The role of auditors and other measures to minimize the cause, preventing and control of fraud.

Through this study, bank customers would be sensitized and be caution in dealing with the bank as to the occurrence of fraud.
Also, the officials of the bank would be educated to be cautious when rendering their services and help their customers against fraud.
It is essential to note that fraud can erode the assets of the banks thereby causing the untimely death of the bank, if not controlled or minimized. Hence, this study will be relevant to the banking industry to help check fraud.

1.5 Research Questions

To guide the conduct of this research, the following questions are raised:

• What is meant by the term fraud and forgeries?
• What are the various types of fraud in Nigerian banking industry?
• What are the causes of fraud on the Nigeria economy?
• What are the various method of fraud prevention?

1.6     Scope of the Study
The scope of the study is to examine critically fraud management in the Nigerian banking industry (2000-2008). The study also covers nature of fraud, types, causes, management control measures and effects of fraud on Nigerian economy.

1.7     Limitations of the Study
The major problems encountered in carrying out this research work are:

1.       Due to annual upgrade of SPSS package, it took the researcher a lot of time and effort to get the recent, compatible and suitable version for the research work
2.       Negative attitude of the government officials in given out needed data.
3.       Due to the hectic nature of CBN, NDIC officials, the researcher have to pay several visits to these places which cost time and money.
4.       Also, some information were being coded by the organisations’ which was not released to the researcher.
However, effort has been made to ensure that this situation does not hinder the completion and quality of the research work.

 1.8 Study Plan

This study will be presented in five chapters. The first chapter is the introduction which includes background, statement of the problem, aim and objectives, significance, research questions, scope, limitations, study plan and definition of key terms.
The second chapter focuses on the review of related literature on the meaning of fraud, management control measures on fraud, types of fraud, causes of fraud, method of preventing frauds, current fraud practices in Nigeria, cheque frauds, fraud control variables and prudential guidelines for banks.
Chapter three constitutes discussion on research methodology that is, historical profile of Nigerian banking industry, research hypotheses, data specification, method of data collection and method of data analysis.
Chapter four is made up of data presentation and analysis.
Chapter five comprised of summary, conclusion and recommendations.

1.9     Definition of Key Terms
1.       Financial Intermediaries: They are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector (government, business enterprises) by mobilizing the surplus sector to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate.
2.       Depositors: Someone who deposits money in a bank or building society especially in a deposit account.
3.       Financial Institution: Banks, insurance companies, savings and loans.
4.       Customer: Someone who uses the services of a business.
5.       Bank: Financial organization which keeps money in accounts
for its client, lends money and exchanges currency.
6.       Bankrupt: Someone who deposits money in a bank or building society especially in a deposit account.
7.       Management: The skill or practice of controlling, directing or planning something especially a commercial enterprises or activity.
8.       Money Transfer Fraud: They are money transfer service in which funds are moved to or from a bank to a beneficiary account at any banking point nationwide in accordance with the instructions from the bank’s customer.
9.       Letter of Credit: It’s a credit instrument given by a bank whereby it undertakes to make payment or assures the beneficiary that payment will be made subject to the term of the credit.

10.     Cheque Kiting Fraud: It is the building up a large apparent balance in one or more bank account based on uncollected cheques drawn against similar accounts in other sometimes distant banks.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

TABLE OF CONTENTS    

CHAPTER ONE
INTRODUCTION
1.1     Background to the Study                                   1
1.2     Statement of the problem                                             5
1.3     Aim and Objectives of the Study                                  6
1.4     Significance of the Study                                            7
1.5     Research Questions                                                   8
1.6     Scope of the Study                                            8
1.7     Limitations of the Study                                               9
1.8     Study Plan                                                                 10
1.9     Definition of Key Terms                                             11
CHAPTER TWO
LITERATURE REVIEW

• Meaning of Fraud                                                      13
• Management Control  Measures on Fraud                   16
• Types of Fraud                                                          18
• Causes of Fraud                                                       22

2.5     Method of Preventing Fraud                                      28
2.6     Current Fraud Practices in Nigeria                              30
2.7     Cheque Frauds                                                         33
2.8     Fraud Control Variables                                              37
2.9     Prudential Guidelines for Banks                                  43

CHAPTER THREE
RESEARCH METHODOLOGY

• Historical Profile of Nigerian Banking Industry           45
• Research Hypotheses                                               50
• Data Specification                                                    52
• Method of Data Collection                                         52
• Method of Data Analysis                                  53

CHAPTER FOUR:   DATA PRESENTATION AND ANALYSIS

• 4.1 Total Amount involved in Fraud and Forgeries           54
• 4.2 Total Expected loss in Fraud and Forgeries               56

4.3     Total Cases in Fraud and Forgeries                           57
4.4     Staff Involvements in Fraud and Forgeries                 58
4.5     Test of Hypotheses                                                  59

CHAPTER FIVE: SUMMARY, CONCLUSION AND  RECOMMENDATIONS

• Summary                                                                68
• Conclusion                                                              70
• Recommendations                                                   71

References                                                                      74

CHAPTER ONE

INTRODUCTION
1.1 Background to the Study
The level of fraud in the present day Nigeria has assumed an epidemic dimension. It has eaten deep into every aspect of our life to the extent that a three old child talks about yahoo mail or 419, newly discovered sobriquet for advanced free fraud that is hunting our banking industry. Nigeria, with all of its natural and human resources tethers on the brink of destruction because of fraud. Much of what we do is “cutting leaves” instead of dealing with the root problem.
Generally, fraud takes its roots from the human heart. It is an axiom that the heart is deceitful above all things and is desperately wicked. Fraud is the number one enemy of the business world, no company is immune to it and it is in all works of life, Nwankwo (1991). The fear is now rife that the increasing wave of fraud in the financial institutions in recent years, if not arrested might pose certain threats to stability and the survival of individual financial institution and the performance of the industry as a whole and no area of the economy is immune from fraudsters and even the banking system. Fraud if not checked might cause run on in the banking sector.
        

  The existence of financial intermediaries automatically takes care of the sizes of fund existing in the economy. Financial intermediaries are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector of the economy (government, business enterprise) by mobilizing the surplus sector of the economy to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate. Examples of financial institutions we have in Nigeria are: Banks, Insurance companies, savings and loans.
The major problems confronting the financial institution today is “fraud”, which has sent many of them out of business and is making the industry customers to loose confidence in them since, since they have not been able to curb the ugly event called “fraud”.

The annual report of the Nigeria Deposit Insurance Corporation (NDIC) over the year indicates that bank fraud remains unabated and this still threatens the well-being of the banking industry. NDIC warns the nation year after year about dangers posed to the banking sector by fraud and also explained to the players in the industry that the sad and unfortunate incidence of increasing frauds and forgeries in the industry will not only deplete the banks capital but will contribute to the erosion of depositors confidence in the system. Before 1986, banks reporting cases on fraud were of no consequence. Returns were very low or just moderate, the number of banks was few and salary levels were low compared to other sectors of the economy.
By and after 1986, with the introduction of Structural Adjustment Programme (SAP) profits rose to high levels returns on investment rose, salaries became more attractive and public attention to banking increased.

By 1989, some banks recorded 3105 million frauds with commercial banks having 392.2 million and merchant banks having 37 million, (References to Business Times of 20th August, 1990).
Fraud as defined by Olufidipe (1994) as “Deceit or trickery deliberately practiced in other to gain some advantage dishonestly”. Fraud is a hydra headed phenomenon that displays its presence in different forms. Such various form includes: money transfers fraud, fraudulent lending, cheque kitting, transaction fraud, letter of credit fraud, borrowing from the till, Anti-money laundering, credit and debit card fraud, first party fraud, internet fraud to mention but a few.

Fraud does not just happen, but perpetrate by human beings with reasons or motivations. The two main causes of fraud are both external and internal factors. Bank fraud and robbery are manifestations of deviant social behaviour. Today, the rising trend in bank fraud and robbery can be traced to certain antecedents of the contemporary society. In Nigeria of recent years and today, there is prevalent moral decadence reflecting fast weakening and debased value system. For example, wealth, irrespective of its source now commands a high premium in Nigerian society.
The internal cause of fraud today in the banking industry can be traced to the following internal environmental factors: corrupt or weak management, ineffective control system, poor personnel practices, shortage of experienced and expertised staff, because the installation and day-to-day implementation of a bank are the responsibilities of the top management of the bank. Infact, as affirmed by Comer (1985), “the scale of fraud in an organization is a reflection of the ability of its managers to manage”, i.e. in a bank where the top management is known to engage in corrupt banking practices, fraud will be common among the junior staff.

To minimize or control the alarming rate of fraud in the banking industry, there ought to be need for the players in the industry to set up and implement an effective and efficient control system that will adequately monitor the daily activities of the industry without leaving any gap. Consequently, appropriate personnel policies and practices should be put in place since fraud is committed by people of moral decadence.

1.2     Statement of the Problem
The problem which militates against fraud management in the banking industry which this study seeks to profer solution to are:

• Lack of efficient and effective internal control system in the banks.
• Inability of the bank officials to consistently follow the established banks procedures in the course of their operation.
• Inadequate training opportunities to the bank officials on fraud detection.
• Non availability of developed process of identifying fraud, related control designed to minimize the risk involved constantly, review and update.
• Lastly, ineffective physical control system of operation.

1.3     Aim and objectives of Study
The aim of the study is to examine fraud management in Nigerian banking industry. The objectives of the study includes the following:

• To explain what is meant by the term fraud.
• To describe the various types of fraud.
• To identify and explain causes of fraud in Nigerian banking industry.
• To examine fraud and forgeries cases in Nigeria.
• To make recommendations as to how fraud and forgeries can be drastically reduced if not totally eradicated in Nigerian banking industry.

1.4     Significance of the Study
This research work will educate the general public as to the following:

• Meaning of fraud
• The causes of fraud
• The types of fraud
• The role of auditors and other measures to minimize the cause, preventing and control of fraud.

Through this study, bank customers would be sensitized and be caution in dealing with the bank as to the occurrence of fraud.
Also, the officials of the bank would be educated to be cautious when rendering their services and help their customers against fraud.
It is essential to note that fraud can erode the assets of the banks thereby causing the untimely death of the bank, if not controlled or minimized. Hence, this study will be relevant to the banking industry to help check fraud.

1.5 Research Questions

To guide the conduct of this research, the following questions are raised:

• What is meant by the term fraud and forgeries?
• What are the various types of fraud in Nigerian banking industry?
• What are the causes of fraud on the Nigeria economy?
• What are the various method of fraud prevention?

1.6     Scope of the Study
The scope of the study is to examine critically fraud management in the Nigerian banking industry (2000-2008). The study also covers nature of fraud, types, causes, management control measures and effects of fraud on Nigerian economy.

1.7     Limitations of the Study
The major problems encountered in carrying out this research work are:

1.       Due to annual upgrade of SPSS package, it took the researcher a lot of time and effort to get the recent, compatible and suitable version for the research work
2.       Negative attitude of the government officials in given out needed data.
3.       Due to the hectic nature of CBN, NDIC officials, the researcher have to pay several visits to these places which cost time and money.
4.       Also, some information were being coded by the organisations’ which was not released to the researcher.
However, effort has been made to ensure that this situation does not hinder the completion and quality of the research work.

 1.8 Study Plan

This study will be presented in five chapters. The first chapter is the introduction which includes background, statement of the problem, aim and objectives, significance, research questions, scope, limitations, study plan and definition of key terms.
The second chapter focuses on the review of related literature on the meaning of fraud, management control measures on fraud, types of fraud, causes of fraud, method of preventing frauds, current fraud practices in Nigeria, cheque frauds, fraud control variables and prudential guidelines for banks.
Chapter three constitutes discussion on research methodology that is, historical profile of Nigerian banking industry, research hypotheses, data specification, method of data collection and method of data analysis.
Chapter four is made up of data presentation and analysis.
Chapter five comprised of summary, conclusion and recommendations.

1.9     Definition of Key Terms
1.       Financial Intermediaries: They are financial institutions that intermediate between the surplus sector of the economy (household) and the deficit sector (government, business enterprises) by mobilizing the surplus sector to save part of their income that are not consumed and repackage it for lending to the deficit unit at a considerable interest rate.
2.       Depositors: Someone who deposits money in a bank or building society especially in a deposit account.
3.       Financial Institution: Banks, insurance companies, savings and loans.
4.       Customer: Someone who uses the services of a business.
5.       Bank: Financial organization which keeps money in accounts
for its client, lends money and exchanges currency.
6.       Bankrupt: Someone who deposits money in a bank or building society especially in a deposit account.
7.       Management: The skill or practice of controlling, directing or planning something especially a commercial enterprises or activity.
8.       Money Transfer Fraud: They are money transfer service in which funds are moved to or from a bank to a beneficiary account at any banking point nationwide in accordance with the instructions from the bank’s customer.
9.       Letter of Credit: It’s a credit instrument given by a bank whereby it undertakes to make payment or assures the beneficiary that payment will be made subject to the term of the credit.

10.     Cheque Kiting Fraud: It is the building up a large apparent balance in one or more bank account based on uncollected cheques drawn against similar accounts in other sometimes distant banks.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: FRAUD MANAGEMENT IN THE NIGERIAN BANKING INDUSTRY

THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA:CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

                                      ABSTRACT

A descriptive study was made about financial distress and resolution options in some commercial banks using secondary statistics.

This research work designed to describe the financial distress in some Commercial Bank in Nigeria.

The study also took at the follow objective such as; nature and types of financial distress facing some commercial banks, the banks involved are commercial banks bailed in 2009.

It was also discovered that distress is caused is a result of poor management, insolvency, low asset base inadequacy of capital e.t.c.

Therefore, commendation such as: Inadequate, Funding, Increased assets base, provisions for adequate liquidity.

Also such research should be done to other non-financial banking institution and other West African Countries.

CHAPTER ONE

Background of the Study

Statement of Problem

Objective of the Study

Significant of the Study

Delimitation/Limitation of the Study

Delimitation of Terms

CHAPTER TWO

Literature Review

CHAPTER THREE
Research Design/Methodology

Sources of Data, Primary and Secondary Location Data.

CHAPTER FOUR
Summary and findings

CHAPTER FIVE

Recommendation

Conclusion

Biography

PROPOSAL

The basic objective situation under this study was the valuation of financial distress in some commercial banks reasons, issues the consequences and solution. It also deals deeply on the resolution options of the distress.

This study has been structured into five (5) Chapters to make for easy reading and understanding

Chapter One dealt with the background of the study, the statement of problem, the objective of the study, the research questions, the scope of study, the limitation if study, the significance, rational, definition of terms and assumption of the study base on the country’s economy.

It also gives an insight into the causes of financial distress in Commercial banks and other Financial Institution.

From this, other four Chapters deserved that base from the chapter one in order to confirm the managing of distress in Nigerian Banks, the assessment of tackling financial distress, measure laxtant of distress in Nigeria. More also the sources of data and its limitation and findings.

In view of the findings above, recommendations have been made to help tackle the financial distress in some Commercial Banks in Nigeria.

CHAPTER ONE

1.1    BACKGROUND OF THE STUDY

In Nigerian Banking system considering the last decade, the Commercial Banking system which is worthy of praise had undergone a rapid expansion both in terms of the number of Institution and the scope of financial services rendered.

As banks were increasingly liberalized, so was the scare of instability sown in these banking system at the sometime.

As these expansion trend contined, a sign of lacked vision among the investors and the direct motive of quick return to satisfy liquidity operation emerged.. The word distress had been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive withdrawal of deposits by government agencies and other public sectors from these banks.

The development trend in the financial structure, exposed and undermine the economic system which impact development of the economy. Therefore, distress places a great burden on regulation authority. Depression in the economy undermine the payment system and discourage savings.

1.2           STATEMENT OF THE PROBLEM

Some Commercial banks have been divided to assist in loans and advance to various sectors of the economy.

And the Commercial banking is known as retail banking which accept deposit and makes payment to his customers.

But the financial condition of some of these Commercial Banking due to the political instablility campaign that was on. Political analyst describes the allocation to be one of the brutal crises that was to come. Therefore, there was price withdrawal of fund by these bank customers. These Institutes is now bogged down by distress, insolvency, poor liquidity due to deadline in deposit and the confidence. The crisis has been averted and the urgency prompted the study. This research work is disquiet to describe the financial distress in some Commercial Banking System in Nigeria.

1.3           OBJECTIVE OF THE STUDY

The objective of the study are:

1. To describe the nature and types of financial distress.
2. To identify some of the Commercial Banks involved in the distress in Nigeria in 2009.
3. To identify the causes of financial distress in these Commercial Banks.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.
6. To identify possible distress resolution options that could be used in commercial banks in Nigeria
7. To identify the effects of such options on the profitability of some commercial banks in Nigeria

1.4           SIGNIFICANCE OF THE STUDY

The importance of a healthy banking system cannot be over emphasized for so many reasons, ranging from the vital economic importance of the long deposit at state to public confidence jobs and career of people and the key role these banks play in economic development.

Also the benefit of finding solution of how to get a solution of the crisis will be found useful to invest by customers of these banks, the regulatory and supervisory authority and even the Government. The solution will also be useful to the managers in general of these banks.

1.5           LIMITATION OF THE STUDY

The study is limited within  some banks due to insufficient time to carry out the work.

Apart from these factors, the inability of accessing all distressed Commercial Banks also caused the limitation e.t.c.

Other possible limitation to the study could be lack of transparency among the distressed banks to the researchers to avoid exposing their image.

1.6           DEDICATION OF TERMS DISTESS.

As been defined by Hornby, it is the state of backing in difficult and needing help Smith and Wall 199:Ologun, 1994 defined distress as “Unhealthy”, Situation” or a state of inability or weakness which prevent the achievement of set goal and objective

1.7           FINANCIAL DISTRESS

This is when Financial Institute can no longer cope with their financial structure and require help. This could take various firms like, Insolvence, Poor Management, Illiquidity, Lack of deposits. e.t.c.

1.8           COMMERCIAL BANK

These are Financial Institutions referred to as retail banks. They accept and make payments on demand to their customers.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

                                      ABSTRACT

A descriptive study was made about financial distress and resolution options in some commercial banks using secondary statistics.

This research work designed to describe the financial distress in some Commercial Bank in Nigeria.

The study also took at the follow objective such as; nature and types of financial distress facing some commercial banks, the banks involved are commercial banks bailed in 2009.

It was also discovered that distress is caused is a result of poor management, insolvency, low asset base inadequacy of capital e.t.c.

Therefore, commendation such as: Inadequate, Funding, Increased assets base, provisions for adequate liquidity.

Also such research should be done to other non-financial banking institution and other West African Countries.

CHAPTER ONE

Background of the Study

Statement of Problem

Objective of the Study

Significant of the Study

Delimitation/Limitation of the Study

Delimitation of Terms

CHAPTER TWO

Literature Review

CHAPTER THREE
Research Design/Methodology

Sources of Data, Primary and Secondary Location Data.

CHAPTER FOUR
Summary and findings

CHAPTER FIVE

Recommendation

Conclusion

Biography

PROPOSAL

The basic objective situation under this study was the valuation of financial distress in some commercial banks reasons, issues the consequences and solution. It also deals deeply on the resolution options of the distress.

This study has been structured into five (5) Chapters to make for easy reading and understanding

Chapter One dealt with the background of the study, the statement of problem, the objective of the study, the research questions, the scope of study, the limitation if study, the significance, rational, definition of terms and assumption of the study base on the country’s economy.

It also gives an insight into the causes of financial distress in Commercial banks and other Financial Institution.

From this, other four Chapters deserved that base from the chapter one in order to confirm the managing of distress in Nigerian Banks, the assessment of tackling financial distress, measure laxtant of distress in Nigeria. More also the sources of data and its limitation and findings.

In view of the findings above, recommendations have been made to help tackle the financial distress in some Commercial Banks in Nigeria.

CHAPTER ONE

1.1    BACKGROUND OF THE STUDY

In Nigerian Banking system considering the last decade, the Commercial Banking system which is worthy of praise had undergone a rapid expansion both in terms of the number of Institution and the scope of financial services rendered.

As banks were increasingly liberalized, so was the scare of instability sown in these banking system at the sometime.

As these expansion trend contined, a sign of lacked vision among the investors and the direct motive of quick return to satisfy liquidity operation emerged.. The word distress had been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive withdrawal of deposits by government agencies and other public sectors from these banks.

The development trend in the financial structure, exposed and undermine the economic system which impact development of the economy. Therefore, distress places a great burden on regulation authority. Depression in the economy undermine the payment system and discourage savings.

1.2           STATEMENT OF THE PROBLEM

Some Commercial banks have been divided to assist in loans and advance to various sectors of the economy.

And the Commercial banking is known as retail banking which accept deposit and makes payment to his customers.

But the financial condition of some of these Commercial Banking due to the political instablility campaign that was on. Political analyst describes the allocation to be one of the brutal crises that was to come. Therefore, there was price withdrawal of fund by these bank customers. These Institutes is now bogged down by distress, insolvency, poor liquidity due to deadline in deposit and the confidence. The crisis has been averted and the urgency prompted the study. This research work is disquiet to describe the financial distress in some Commercial Banking System in Nigeria.

1.3           OBJECTIVE OF THE STUDY

The objective of the study are:

1. To describe the nature and types of financial distress.
2. To identify some of the Commercial Banks involved in the distress in Nigeria in 2009.
3. To identify the causes of financial distress in these Commercial Banks.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.
6. To identify possible distress resolution options that could be used in commercial banks in Nigeria
7. To identify the effects of such options on the profitability of some commercial banks in Nigeria

1.4           SIGNIFICANCE OF THE STUDY

The importance of a healthy banking system cannot be over emphasized for so many reasons, ranging from the vital economic importance of the long deposit at state to public confidence jobs and career of people and the key role these banks play in economic development.

Also the benefit of finding solution of how to get a solution of the crisis will be found useful to invest by customers of these banks, the regulatory and supervisory authority and even the Government. The solution will also be useful to the managers in general of these banks.

1.5           LIMITATION OF THE STUDY

The study is limited within  some banks due to insufficient time to carry out the work.

Apart from these factors, the inability of accessing all distressed Commercial Banks also caused the limitation e.t.c.

Other possible limitation to the study could be lack of transparency among the distressed banks to the researchers to avoid exposing their image.

1.6           DEDICATION OF TERMS DISTESS.

As been defined by Hornby, it is the state of backing in difficult and needing help Smith and Wall 199:Ologun, 1994 defined distress as “Unhealthy”, Situation” or a state of inability or weakness which prevent the achievement of set goal and objective

1.7           FINANCIAL DISTRESS

This is when Financial Institute can no longer cope with their financial structure and require help. This could take various firms like, Insolvence, Poor Management, Illiquidity, Lack of deposits. e.t.c.

1.8           COMMERCIAL BANK

These are Financial Institutions referred to as retail banks. They accept and make payments on demand to their customers.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

                                      ABSTRACT

A descriptive study was made about financial distress and resolution options in some commercial banks using secondary statistics.

This research work designed to describe the financial distress in some Commercial Bank in Nigeria.

The study also took at the follow objective such as; nature and types of financial distress facing some commercial banks, the banks involved are commercial banks bailed in 2009.

It was also discovered that distress is caused is a result of poor management, insolvency, low asset base inadequacy of capital e.t.c.

Therefore, commendation such as: Inadequate, Funding, Increased assets base, provisions for adequate liquidity.

Also such research should be done to other non-financial banking institution and other West African Countries.

CHAPTER ONE

Background of the Study

Statement of Problem

Objective of the Study

Significant of the Study

Delimitation/Limitation of the Study

Delimitation of Terms

CHAPTER TWO

Literature Review

CHAPTER THREE
Research Design/Methodology

Sources of Data, Primary and Secondary Location Data.

CHAPTER FOUR
Summary and findings

CHAPTER FIVE

Recommendation

Conclusion

Biography

PROPOSAL

The basic objective situation under this study was the valuation of financial distress in some commercial banks reasons, issues the consequences and solution. It also deals deeply on the resolution options of the distress.

This study has been structured into five (5) Chapters to make for easy reading and understanding

Chapter One dealt with the background of the study, the statement of problem, the objective of the study, the research questions, the scope of study, the limitation if study, the significance, rational, definition of terms and assumption of the study base on the country’s economy.

It also gives an insight into the causes of financial distress in Commercial banks and other Financial Institution.

From this, other four Chapters deserved that base from the chapter one in order to confirm the managing of distress in Nigerian Banks, the assessment of tackling financial distress, measure laxtant of distress in Nigeria. More also the sources of data and its limitation and findings.

In view of the findings above, recommendations have been made to help tackle the financial distress in some Commercial Banks in Nigeria.

CHAPTER ONE

1.1    BACKGROUND OF THE STUDY

In Nigerian Banking system considering the last decade, the Commercial Banking system which is worthy of praise had undergone a rapid expansion both in terms of the number of Institution and the scope of financial services rendered.

As banks were increasingly liberalized, so was the scare of instability sown in these banking system at the sometime.

As these expansion trend contined, a sign of lacked vision among the investors and the direct motive of quick return to satisfy liquidity operation emerged.. The word distress had been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive withdrawal of deposits by government agencies and other public sectors from these banks.

The development trend in the financial structure, exposed and undermine the economic system which impact development of the economy. Therefore, distress places a great burden on regulation authority. Depression in the economy undermine the payment system and discourage savings.

1.2           STATEMENT OF THE PROBLEM

Some Commercial banks have been divided to assist in loans and advance to various sectors of the economy.

And the Commercial banking is known as retail banking which accept deposit and makes payment to his customers.

But the financial condition of some of these Commercial Banking due to the political instablility campaign that was on. Political analyst describes the allocation to be one of the brutal crises that was to come. Therefore, there was price withdrawal of fund by these bank customers. These Institutes is now bogged down by distress, insolvency, poor liquidity due to deadline in deposit and the confidence. The crisis has been averted and the urgency prompted the study. This research work is disquiet to describe the financial distress in some Commercial Banking System in Nigeria.

1.3           OBJECTIVE OF THE STUDY

The objective of the study are:

1. To describe the nature and types of financial distress.
2. To identify some of the Commercial Banks involved in the distress in Nigeria in 2009.
3. To identify the causes of financial distress in these Commercial Banks.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.
6. To identify possible distress resolution options that could be used in commercial banks in Nigeria
7. To identify the effects of such options on the profitability of some commercial banks in Nigeria

1.4           SIGNIFICANCE OF THE STUDY

The importance of a healthy banking system cannot be over emphasized for so many reasons, ranging from the vital economic importance of the long deposit at state to public confidence jobs and career of people and the key role these banks play in economic development.

Also the benefit of finding solution of how to get a solution of the crisis will be found useful to invest by customers of these banks, the regulatory and supervisory authority and even the Government. The solution will also be useful to the managers in general of these banks.

1.5           LIMITATION OF THE STUDY

The study is limited within  some banks due to insufficient time to carry out the work.

Apart from these factors, the inability of accessing all distressed Commercial Banks also caused the limitation e.t.c.

Other possible limitation to the study could be lack of transparency among the distressed banks to the researchers to avoid exposing their image.

1.6           DEDICATION OF TERMS DISTESS.

As been defined by Hornby, it is the state of backing in difficult and needing help Smith and Wall 199:Ologun, 1994 defined distress as “Unhealthy”, Situation” or a state of inability or weakness which prevent the achievement of set goal and objective

1.7           FINANCIAL DISTRESS

This is when Financial Institute can no longer cope with their financial structure and require help. This could take various firms like, Insolvence, Poor Management, Illiquidity, Lack of deposits. e.t.c.

1.8           COMMERCIAL BANK

These are Financial Institutions referred to as retail banks. They accept and make payments on demand to their customers.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

                                      ABSTRACT

A descriptive study was made about financial distress and resolution options in some commercial banks using secondary statistics.

This research work designed to describe the financial distress in some Commercial Bank in Nigeria.

The study also took at the follow objective such as; nature and types of financial distress facing some commercial banks, the banks involved are commercial banks bailed in 2009.

It was also discovered that distress is caused is a result of poor management, insolvency, low asset base inadequacy of capital e.t.c.

Therefore, commendation such as: Inadequate, Funding, Increased assets base, provisions for adequate liquidity.

Also such research should be done to other non-financial banking institution and other West African Countries.

CHAPTER ONE

Background of the Study

Statement of Problem

Objective of the Study

Significant of the Study

Delimitation/Limitation of the Study

Delimitation of Terms

CHAPTER TWO

Literature Review

CHAPTER THREE
Research Design/Methodology

Sources of Data, Primary and Secondary Location Data.

CHAPTER FOUR
Summary and findings

CHAPTER FIVE

Recommendation

Conclusion

Biography

PROPOSAL

The basic objective situation under this study was the valuation of financial distress in some commercial banks reasons, issues the consequences and solution. It also deals deeply on the resolution options of the distress.

This study has been structured into five (5) Chapters to make for easy reading and understanding

Chapter One dealt with the background of the study, the statement of problem, the objective of the study, the research questions, the scope of study, the limitation if study, the significance, rational, definition of terms and assumption of the study base on the country’s economy.

It also gives an insight into the causes of financial distress in Commercial banks and other Financial Institution.

From this, other four Chapters deserved that base from the chapter one in order to confirm the managing of distress in Nigerian Banks, the assessment of tackling financial distress, measure laxtant of distress in Nigeria. More also the sources of data and its limitation and findings.

In view of the findings above, recommendations have been made to help tackle the financial distress in some Commercial Banks in Nigeria.

CHAPTER ONE

1.1    BACKGROUND OF THE STUDY

In Nigerian Banking system considering the last decade, the Commercial Banking system which is worthy of praise had undergone a rapid expansion both in terms of the number of Institution and the scope of financial services rendered.

As banks were increasingly liberalized, so was the scare of instability sown in these banking system at the sometime.

As these expansion trend contined, a sign of lacked vision among the investors and the direct motive of quick return to satisfy liquidity operation emerged.. The word distress had been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive withdrawal of deposits by government agencies and other public sectors from these banks.

The development trend in the financial structure, exposed and undermine the economic system which impact development of the economy. Therefore, distress places a great burden on regulation authority. Depression in the economy undermine the payment system and discourage savings.

1.2           STATEMENT OF THE PROBLEM

Some Commercial banks have been divided to assist in loans and advance to various sectors of the economy.

And the Commercial banking is known as retail banking which accept deposit and makes payment to his customers.

But the financial condition of some of these Commercial Banking due to the political instablility campaign that was on. Political analyst describes the allocation to be one of the brutal crises that was to come. Therefore, there was price withdrawal of fund by these bank customers. These Institutes is now bogged down by distress, insolvency, poor liquidity due to deadline in deposit and the confidence. The crisis has been averted and the urgency prompted the study. This research work is disquiet to describe the financial distress in some Commercial Banking System in Nigeria.

1.3           OBJECTIVE OF THE STUDY

The objective of the study are:

1. To describe the nature and types of financial distress.
2. To identify some of the Commercial Banks involved in the distress in Nigeria in 2009.
3. To identify the causes of financial distress in these Commercial Banks.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.
6. To identify possible distress resolution options that could be used in commercial banks in Nigeria
7. To identify the effects of such options on the profitability of some commercial banks in Nigeria

1.4           SIGNIFICANCE OF THE STUDY

The importance of a healthy banking system cannot be over emphasized for so many reasons, ranging from the vital economic importance of the long deposit at state to public confidence jobs and career of people and the key role these banks play in economic development.

Also the benefit of finding solution of how to get a solution of the crisis will be found useful to invest by customers of these banks, the regulatory and supervisory authority and even the Government. The solution will also be useful to the managers in general of these banks.

1.5           LIMITATION OF THE STUDY

The study is limited within  some banks due to insufficient time to carry out the work.

Apart from these factors, the inability of accessing all distressed Commercial Banks also caused the limitation e.t.c.

Other possible limitation to the study could be lack of transparency among the distressed banks to the researchers to avoid exposing their image.

1.6           DEDICATION OF TERMS DISTESS.

As been defined by Hornby, it is the state of backing in difficult and needing help Smith and Wall 199:Ologun, 1994 defined distress as “Unhealthy”, Situation” or a state of inability or weakness which prevent the achievement of set goal and objective

1.7           FINANCIAL DISTRESS

This is when Financial Institute can no longer cope with their financial structure and require help. This could take various firms like, Insolvence, Poor Management, Illiquidity, Lack of deposits. e.t.c.

1.8           COMMERCIAL BANK

These are Financial Institutions referred to as retail banks. They accept and make payments on demand to their customers.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#5000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: THE EFFECT OF DISTRESS RESOLUTION OPTIONS ON THE PROFITABILITY OF COMMERCIAL BANKS IN NIGERIA: CASE STUDY OF ANY COMMERCIAL BANK BAILED IN 2009.

FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, REASONS, ISSUES, CONSEQUENCES AND SOLUTION

ABSTRACT

A descriptive study was made about financial distress in some Commercial Banks using secondary statistics.

This research work was designed to describe the Financial distress in some Commercial Bank in Nigeria.  Also the causative factor as it affects Commercial Banks with the limited area of coverage.

The study also look at the following objectives such as nature and type of financial distress facing some Commercial Banks, banks involved in the distress, causes of distress, level of distress and to know if poor management also cause distress.

The study also answers the five (5) research questions.  It was also discovered that distress is caused as a result of poor management, insolvency loss asset base, inadequacy of capital etc.

Therefore, recommendation such as: proper management, adequate funding, increased asset base provisions and adequate liquidity were made for the study.  Also such research work should be done to other non-financial Banking Institution and other West African Country.

TABLE OF CONTENTS

TITLE PAGE                                                    II

APPROVAL PAGE                                           III

DEDICATION                                                   IV

ACKNOWLEDGEMENT                                   V

ABSTRACTS                                                   VI

LIST OF TABLES                                            VIII

TABLE OF CONTENTS                                   IX

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY                     1

1.2      STATEMENT OF PROBLEM                   2

1.3      OBJECTIVE OF THE STUDY                  3

1.4      RESEARCH QUESTIONS                               4

1.5      SCOPE OF STUDY                                 5

1.6      LIMITATION OF STUDY                          5

1.7      SIGNIFICANCE OF THE STUDY                     6

1.8      RATIONALE/JUSTIFICATION FOR THE STUDY6

1.9      DEFINITION OF TERMS                         7

1.10  ASSUMPTION OF THE STUDY                      8

CHAPTER TWO

LITERATURE REVIEW                                   9

2.1      FINANCIAL DISTRESS                           13

2.2      MANAGING DISTRESS IN NIGERIAN BANKS       14

2.3      ASSESSMENT OF THE RESOLUTION FRAMEWORK

IN NIGERIA AND PROBLEMS                21

2.4      ACTION TO TACKLE FINANCIAL DISTRESS

2.5      CAUSES OF FINANCIAL DISTRESS

2.6      MEASURE/EXTENT OF DISTRESS IN NIGERIA

CHAPTER THREE

RESEARCH METHODOLOGY

3.1      SOURCE OF DATA                                 39

3.2      LIMITATION OF SOURCE OF DATA              41

CHAPTER FOUR

FINDINGS                                                               43

CHAPTER FIVE

SUMMARY, CONCLUSION AND SUGGESTION FOR

FURTHER RESEARCH

5.1      SUMMARY OF FINDINGS                               47

5.2      CONCLUSION                                         48

5.3      SUGGESTION FOR FURTHER RESEARCH   49

BIBLIOGRAPHY                                              50

CHAPTER ONE

INTRODUCTION

1.1                        BACKGROUND OF THE STUDY

In the Nigerian Banking system considering the last decade the Commercial Banking to be precise had under gone a rapid expansion both in terms of the number of Institution and the scope of Financial services rendered.  As bank licensing was liberalized so was the seed of instability sown in these banking system at the same time.

As these expansion trend continuous, a sign of lacked vision among the investors and the directors motive of quick returns to satisfy the liquidity operation.  The word distress has been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive with drawal of deposit by government agencies and other public sectors from these bank.

The development threatened the Financial structure, expose and undermine the economic system which impede development of the economy.

Therefore, distress places a great burden on regulatory authority, depress the economy, undermine the payment system and discourage savings.

1.2   STATEMENT OF THE PROBLEM

Some Commercial Banks have been diverted to assist in loans and advances to various sectors of the economy.  And the Commercial Banking is known as refall banking which accept deposit and make payment to his customers.  But the Financial condition of some of these Commercial Banking due to the political instability/electoral campaign that is on.  Political analyst describe this on coming election to be one of the  brutal crisis that is to come.  Therefore, there is panic with drawal of fund by these bank customers.  This institution is now bogged down by distress, insolvency, poor liquidity due to decline in deposit, and loss of confidence.  The crisis has to be averted and the urgency prompted the study.  This research work is designed to describe the financial distress in some Commercial Banking system in Nigeria.

1.3   OBJECTIVE OF THE STUDY

The objectives of the study are:

1. To describe the nature and type of Financial distress facing some Commercial Banks in Nigeria.
2. To identify some of the Commercial Banks involved in distress in Nigeria.
3. To identify the causes of financial distress in Nigeria.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.

1.4   RESEARCH QUESTIONS

For the purposes of this study, the following question is addressed.

1. What is the nature and type of financial distress in Commercial Banks in Nigeria?
2. What are the causes of Financial distress among some Commercial Banks in Nigeria?
3. What Nigerian Commercial Banks are involved in Financial distress?
4. What is the level of distress in some Commercial Banks?
5. Is poor management responsible for Financial distress?

1.5               SCOPE OF THE STUDY

The study examines distress and causative factors as it affects some Commercial Banks.

However, it was not possible to carryout the research in the country as a whole, but with the available range covered it made possible for the project to be unbiased.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#3000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: CONSEQUENCES AND SOLUTION, FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, ISSUES, REASONS

FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, REASONS, ISSUES, CONSEQUENCES AND SOLUTION

ABSTRACT

        A descriptive study was made about financial distress in some Commercial Banks using secondary statistics.

This research work was designed to describe the Financial distress in some Commercial Bank in Nigeria.  Also the causative factor as it affects Commercial Banks with the limited area of coverage.

The study also look at the following objectives such as nature and type of financial distress facing some Commercial Banks, banks involved in the distress, causes of distress, level of distress and to know if poor management also cause distress.

The study also answers the five (5) research questions.  It was also discovered that distress is caused as a result of poor management, insolvency loss asset base, inadequacy of capital etc.

Therefore, recommendation such as: proper management, adequate funding, increased asset base provisions and adequate liquidity were made for the study.  Also such research work should be done to other non-financial Banking Institution and other West African Country.

TABLE OF CONTENTS

TITLE PAGE                                                    II

APPROVAL PAGE                                           III

DEDICATION                                                   IV

ACKNOWLEDGEMENT                                   V

ABSTRACTS                                                   VI

LIST OF TABLES                                            VIII

TABLE OF CONTENTS                                   IX

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY                     1

1.2      STATEMENT OF PROBLEM                   2

1.3      OBJECTIVE OF THE STUDY                  3

1.4      RESEARCH QUESTIONS                               4

1.5      SCOPE OF STUDY                                 5

1.6      LIMITATION OF STUDY                          5

1.7      SIGNIFICANCE OF THE STUDY                     6

1.8      RATIONALE/JUSTIFICATION FOR THE STUDY6

1.9      DEFINITION OF TERMS                         7

1.10  ASSUMPTION OF THE STUDY                      8

CHAPTER TWO

LITERATURE REVIEW                                   9

2.1      FINANCIAL DISTRESS                           13

2.2      MANAGING DISTRESS IN NIGERIAN BANKS       14

2.3      ASSESSMENT OF THE RESOLUTION FRAMEWORK

IN NIGERIA AND PROBLEMS                21

2.4      ACTION TO TACKLE FINANCIAL DISTRESS

2.5      CAUSES OF FINANCIAL DISTRESS

2.6      MEASURE/EXTENT OF DISTRESS IN NIGERIA

CHAPTER THREE

RESEARCH METHODOLOGY

3.1      SOURCE OF DATA                                 39

3.2      LIMITATION OF SOURCE OF DATA              41

CHAPTER FOUR

FINDINGS                                                               43

CHAPTER FIVE

SUMMARY, CONCLUSION AND SUGGESTION FOR

FURTHER RESEARCH

5.1      SUMMARY OF FINDINGS                               47

5.2      CONCLUSION                                         48

5.3      SUGGESTION FOR FURTHER RESEARCH   49

BIBLIOGRAPHY                                              50

CHAPTER ONE

INTRODUCTION

1.1                        BACKGROUND OF THE STUDY

In the Nigerian Banking system considering the last decade the Commercial Banking to be precise had under gone a rapid expansion both in terms of the number of Institution and the scope of Financial services rendered.  As bank licensing was liberalized so was the seed of instability sown in these banking system at the same time.

As these expansion trend continuous, a sign of lacked vision among the investors and the directors motive of quick returns to satisfy the liquidity operation.  The word distress has been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive with drawal of deposit by government agencies and other public sectors from these bank.

The development threatened the Financial structure, expose and undermine the economic system which impede development of the economy.

Therefore, distress places a great burden on regulatory authority, depress the economy, undermine the payment system and discourage savings.

1.2   STATEMENT OF THE PROBLEM

Some Commercial Banks have been diverted to assist in loans and advances to various sectors of the economy.  And the Commercial Banking is known as refall banking which accept deposit and make payment to his customers.  But the Financial condition of some of these Commercial Banking due to the political instability/electoral campaign that is on.  Political analyst describe this on coming election to be one of the  brutal crisis that is to come.  Therefore, there is panic with drawal of fund by these bank customers.  This institution is now bogged down by distress, insolvency, poor liquidity due to decline in deposit, and loss of confidence.  The crisis has to be averted and the urgency prompted the study.  This research work is designed to describe the financial distress in some Commercial Banking system in Nigeria.

1.3   OBJECTIVE OF THE STUDY

The objectives of the study are:

1. To describe the nature and type of Financial distress facing some Commercial Banks in Nigeria.
2. To identify some of the Commercial Banks involved in distress in Nigeria.
3. To identify the causes of financial distress in Nigeria.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.

1.4   RESEARCH QUESTIONS

For the purposes of this study, the following question is addressed.

1. What is the nature and type of financial distress in Commercial Banks in Nigeria?
2. What are the causes of Financial distress among some Commercial Banks in Nigeria?
3. What Nigerian Commercial Banks are involved in Financial distress?
4. What is the level of distress in some Commercial Banks?
5. Is poor management responsible for Financial distress?

1.5               SCOPE OF THE STUDY

The study examines distress and causative factors as it affects some Commercial Banks.

However, it was not possible to carryout the research in the country as a whole, but with the available range covered it made possible for the project to be unbiased.

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)

After paying the appropriate amount (#10000) into our bank Account below, send the following information to

08139462710 or 08137701720

(1)    Your project topics

(2)     Email Address

(3)     Payment Name

(4)    Teller Number

We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 0046579864

Bank: GTBank.

OR

Account Name: AMUTAH DANIEL CHUKWUDI

Account Number: 2023350498

Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD

As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING

Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.

FOR MORE INFORMATION, CALL:

08139462710 or 08137701720

YOU CAN ALSO CALL:

08068231953, 08168759420

Visit any of our project websites below:

www.easyprojectmaterials.com

www.easyprojectmaterials.com.ng

www.easyprojectmaterial.net

www.easyprojectmaterial.net.ng

www.easyprojectsolutions.com

www.worldofnolimit.com

www.worldofnolimit.com

Tags: CONSEQUENCES AND SOLUTION, FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, ISSUES, REASONS

FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, REASONS, ISSUES, CONSEQUENCES AND SOLUTION

ABSTRACT

        A descriptive study was made about financial distress in some Commercial Banks using secondary statistics.

This research work was designed to describe the Financial distress in some Commercial Bank in Nigeria.  Also the causative factor as it affects Commercial Banks with the limited area of coverage.

The study also look at the following objectives such as nature and type of financial distress facing some Commercial Banks, banks involved in the distress, causes of distress, level of distress and to know if poor management also cause distress.

The study also answers the five (5) research questions.  It was also discovered that distress is caused as a result of poor management, insolvency loss asset base, inadequacy of capital etc.

Therefore, recommendation such as: proper management, adequate funding, increased asset base provisions and adequate liquidity were made for the study.  Also such research work should be done to other non-financial Banking Institution and other West African Country.

TABLE OF CONTENTS

TITLE PAGE                                                    II

APPROVAL PAGE                                           III

DEDICATION                                                   IV

ACKNOWLEDGEMENT                                   V

ABSTRACTS                                                   VI

LIST OF TABLES                                            VIII

TABLE OF CONTENTS                                   IX

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY                     1

1.2      STATEMENT OF PROBLEM                   2

1.3      OBJECTIVE OF THE STUDY                  3

1.4      RESEARCH QUESTIONS                               4

1.5      SCOPE OF STUDY                                 5

1.6      LIMITATION OF STUDY                          5

1.7      SIGNIFICANCE OF THE STUDY                     6

1.8      RATIONALE/JUSTIFICATION FOR THE STUDY6

1.9      DEFINITION OF TERMS                         7

1.10  ASSUMPTION OF THE STUDY                      8

CHAPTER TWO

LITERATURE REVIEW                                   9

2.1      FINANCIAL DISTRESS                           13

2.2      MANAGING DISTRESS IN NIGERIAN BANKS       14

2.3      ASSESSMENT OF THE RESOLUTION FRAMEWORK

IN NIGERIA AND PROBLEMS                21

2.4      ACTION TO TACKLE FINANCIAL DISTRESS

2.5      CAUSES OF FINANCIAL DISTRESS

2.6      MEASURE/EXTENT OF DISTRESS IN NIGERIA

CHAPTER THREE

RESEARCH METHODOLOGY

3.1      SOURCE OF DATA                                 39

3.2      LIMITATION OF SOURCE OF DATA              41

CHAPTER FOUR

FINDINGS                                                               43

CHAPTER FIVE

SUMMARY, CONCLUSION AND SUGGESTION FOR

FURTHER RESEARCH

5.1      SUMMARY OF FINDINGS                               47

5.2      CONCLUSION                                         48

5.3      SUGGESTION FOR FURTHER RESEARCH   49

BIBLIOGRAPHY                                              50

CHAPTER ONE

INTRODUCTION

1.1                        BACKGROUND OF THE STUDY

In the Nigerian Banking system considering the last decade the Commercial Banking to be precise had under gone a rapid expansion both in terms of the number of Institution and the scope of Financial services rendered.  As bank licensing was liberalized so was the seed of instability sown in these banking system at the same time.

As these expansion trend continuous, a sign of lacked vision among the investors and the directors motive of quick returns to satisfy the liquidity operation.  The word distress has been in existence but increased promptly as these institution increased due to acute shortage of resources and the massive with drawal of deposit by government agencies and other public sectors from these bank.

The development threatened the Financial structure, expose and undermine the economic system which impede development of the economy.

Therefore, distress places a great burden on regulatory authority, depress the economy, undermine the payment system and discourage savings.

1.2   STATEMENT OF THE PROBLEM

Some Commercial Banks have been diverted to assist in loans and advances to various sectors of the economy.  And the Commercial Banking is known as refall banking which accept deposit and make payment to his customers.  But the Financial condition of some of these Commercial Banking due to the political instability/electoral campaign that is on.  Political analyst describe this on coming election to be one of the  brutal crisis that is to come.  Therefore, there is panic with drawal of fund by these bank customers.  This institution is now bogged down by distress, insolvency, poor liquidity due to decline in deposit, and loss of confidence.  The crisis has to be averted and the urgency prompted the study.  This research work is designed to describe the financial distress in some Commercial Banking system in Nigeria.

1.3   OBJECTIVE OF THE STUDY

The objectives of the study are:

1. To describe the nature and type of Financial distress facing some Commercial Banks in Nigeria.
2. To identify some of the Commercial Banks involved in distress in Nigeria.
3. To identify the causes of financial distress in Nigeria.
4. To determine the level of distress in these Commercial Banks.
5. To find out if the distress is caused by poor management.

1.4   RESEARCH QUESTIONS

For the purposes of this study, the following question is addressed.

1. What is the nature and type of financial distress in Commercial Banks in Nigeria?
2. What are the causes of Financial distress among some Commercial Banks in Nigeria?
3. What Nigerian Commercial Banks are involved in Financial distress?
4. What is the level of distress in some Commercial Banks?
5. Is poor management responsible for Financial distress?

1.5               SCOPE OF THE STUDY

The study examines distress and causative factors as it affects some Commercial Banks.

However, it was not possible to carryout the research in the country as a whole, but with the available range covered it made possible for the project to be unbiased.

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Tags: CONSEQUENCES AND SOLUTION, FINANCIAL DISTRESS IN SOME COMMERCIAL BANKS, ISSUES, REASONS