ABSTRACT
A research project was carried out as an opinion survey to determine the role of Nigerian Monetary Authorities in Bank Distress prevention from 1990 to 2005.A sample size of ‘68’ was arrived at using ‘204 randomly selected staff from CBN. NDIC and First Bank of Nigeria Plc Uwani branch as the population size.The research works consist of five chapters, which will be discoursed one by one.Chapter one includes the introduction, statement of problem, objectives of the study, the research questions, statement of hypothesis, the significance of the study, limitations of the study and definition of operational terms.
Chapter two is the review of related literature. This chapter discussed the nature of Nigerian deposit insurance company, and also discussed the causes and implications of distress on the economy the chapter also discussed the roles which the monetary authorities play to prevent bank distress and its effectiveness.Chapter three which is the research methodology includes the research design, the area of study, the population, sampling technique, the instrument of data collection and the method of data analysis.Chapter four of the study includes the presentation, analysis and interpretation of data.
The sixty eight (68) questionnaires which were distributed was analysed through the use of table. The statistical method, which is used in analyzing the result of the information, are the simple percentage and chi-square (X2).Chapter five of the study consists of the summary of findings, conclusion and recommendation.
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The deteriorating condition of financial institutions particularly banks has remained a problem of great concern to policy makers. It is now a well know fact that there is wide spread distress in the banking system and despite the measures recently taken by the government as well as bank regulators and supervisors, there remain fear that the problem is not over yet and is being suppressed and not being suppressed and not being dealt with decisively.Banking crisis is not limited in Nigeria, it is also present in other parts of African, latin America, Asia, Europe and North America.
In fact, it is a development that has come to be associated in particular with economic in which financial liberalization is being or has been implemented.There is wide spread belief that banks occupy unique positions in most economics, both developed and developing countries, as creators of money, the principal depository of savings, major allocator of credit, and the manager of the country’s payment mechanism. Consequently, the government often deem it necessary to formulate policies, for the soundness, efficiency and safety of the bank industry. The monetary authority has the responsibility for the supervisor of the banking system.
This responsibility is discharged by undertaking both of site and on-set examination of the books of the banks. The provisions among other things cover minimum capital requirements, returns to be submitted to the CBN Central Bank of Nigeria by banks, power of the CBN to conduct routine and special examination and power of the CBN to revoke a bank’s license.