Financial Distress In Source Commercial Bank Reasons, Consequences And Solution
A descriptive study was made about financial distress 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 source commercial banks, the banks involved.
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 Country.
BACKGROUND OF
THE STUDY
In Nigerian Banking system considering the last decade the Commercial Banking to be praise had undergone a rapid expansion both in terms of the number of Institution and the scope of financial services rendered.
As bank increasing was liberalized so was the scared of instability sown in these banking system at the sometime.
As these expansion trend continuous, a sign of lacked vision among the investors and the directs motive of quick return to satisfy liquidity operation. The word distress had been in assistance 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 the financial structure, exposed and undermine the economic system which impact development of the economy. Therefore, distress places a great burden on regulation, authority, depress 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 know as retail banking which accept deposit and makes payment to his customers.
But the financial condition of source of these Commercial Banking due to the political instablility/lactory campaign that wad 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.
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.
1.4 SIGNIFICANCE OF THE STUDY
The importance of a health banking system cannot be over emphasized for so many reasons, ranging from the vital economic importance of the longe deposit at state to public confidence jobs and carear of people and the key role these banks plays in economic development.
Also the benefit of finding solution of how to get a solution ofthe crisis will be found useful to invest or 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 Enugu State due to insufficient t6ime to carryout the work.
Apart from these factor the inability of accessing all distress Commercial Banks, financial contains also cause 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, Insolence. Poor Management, Inliquidity, Lack of deposits. e.t.c.
1.8 COMMERCIAL BANK
This are Financial Institution referred to as retail bank. They accept and make payment on demand to their customers.
i Title Page
ii Approval Page
iii Dedication
iv Acknowledgement
v Abstract
vi Table of Content
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
The Title Page should be the first section of your project “Financial Distress In Source Commercial Bank Reasons, Consequences And Solution”, providing essential details like the project title, your name, your supervisor’s name, the institution, and the submission date. After that, the Abstract offers a brief summary of your project, touching on its purpose, methods, results, and conclusions in 150-300 words. The Acknowledgments section is where you can thank those who supported your research, such as your supervisor, peers, or organizations that provided resources.
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The main body of the Financial Distress In Source Commercial Bank Reasons, Consequences And Solution should start with the Introduction, which provides background information, outlines the research problem, states your objectives, and gives a brief overview of your research methods. Following that, the Literature Review offers an in-depth look at previous research relevant to your project, identifying gaps your study aims to address. The Methodology section then explains the research design, tools, and data collection methods you used to conduct the project and analyze the data.
In the Results and Discussion section, you present your findings and discuss them in relation to the Financial Distress In Source Commercial Bank Reasons, Consequences And Solution research questions or objectives, often using tables or charts to help explain the data. The Conclusion summarizes the key results, discusses their implications, and suggests possible directions for future research. You may also include recommendations based on your findings, offering practical advice for improvements or applications. Finally, the Financial Distress In Source Commercial Bank Reasons, Consequences And Solution project should include a References or Bibliography section to list all the sources you cited, as well as Appendices for any additional material. A Statement of Originality is often included to confirm the authenticity of your work