ABSTRACT
This work “Evaluating the impact of Bank Distress on the profit growth of commercial banks†has the objective of showing the effect of distress on the profit growth of commercial banks. The causes of bank distress in Nigeria and the possible prevention strategies or failure resolution options of bank distress. The review of related literature was done to give an in depth knowledge of the topic to the researchers. Both primary and secondary sources of data were used by the researchers.
Simple statistical tools like T-test, least square (B) and tables were used to analyse the data collected. The following findings were made; Banks made lower profit during distress period and higher profit during distress period and higher profit after distress period. Meanwhile, banks generally made lower profit during distress period. We recommended that the supervisory arsenals to ensure minimum distress with little or no effect when it occurs.
PROPOSAL
The topic “Evaluating the Impact of Bank Distress on the profit Growth of Commercial Bank, (A case study of selected Commercial banks)
The Topic “Evaluating the impact of Bank Distress on the Profit Growth of Commercial Banks†is posed to appraise the effect of distress on the profit growth of commercial banks. It measures the way in which distress affects the profit of commercial banks negatively or otherwise.
For effective execution of this work a ten year profit trend of some selected banks will be evaluated. This ten year profit will cover the period of distress and after distress for a proper appraisal of the work.
Meanwhile the profit of these banks will be collected using a primary data source (Annual Report) and secondary sources of information and there primary data will be analysed using the most appropriate statistical tools for an accurate result.
However, there will also be a formulation of hypothesis which is based on the known negative implication of distress. Though, this hypothesis and also there will be a formulation of research questions which will be sample in relative to the objective of the work for the best result.
After all, an inference will be drawn based on the outcome of our statistical test. Based on the results obtained in our tests there will be a recommendation thereof.
The distress in a bank made the banks to have lower profit during distress period and higher profit after distress permit, meanwhile, generally, banks made lower profit during distress period, due to the insufficient cover of losses from the profit generate internally was unable to generate internally positive capital.
The bank or some banks also experience illiquidity or insolvency, this is resulting in a situation whereby the banks could no longer met its liabilities and all there brings about illiquid. These is also insolvent in the bank when the value of its realizable assets is less than the total value of its liabilities.
Furthermore, the inability of a financial institutions to bridge its primary obligation of creating credit and loss of liquidity or the liability of the bank to turn assets into cash to meet any abnormal demand for cash by their customers.
TABLE OF CONTENT
Title page
Approval page
Dedication
Acknowledgement
Abstract
PROPOSAL
Table of Content
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose/Objectives of the study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope, Limitations and Delimitations
1.8 Definitions of Terms
CHAPTER TWO
2.0 Review of Related Literature
2.1 Definition of Distress in Banking Industry
2.2 Symptoms of Distressed Banks in Nigeria
2.3 Causes of Banking Distress
2.3.1Capital Inadequacy
2.3.2Inept Management
2.3.3Ownership Structure/Political Interference in Management of Banks
2.4 Distress Management and Failure Resolution Option
2.5 The Role of Banks in an Economic System
Reference
CHAPTER THREE
3.0 Research Design and Methodology
3.1 Research Design
3.2 Area of Study
3.3 Population
3.4 Sample and Sampling Techniques
3.5 Instruments of Data Collection
3.6 Methods of Data Presentation
3.7 Methods of Data Analysis
Reference
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Graphical Illustration of Banks Profit
CHAPTER FIVE
5.0 Findings, Recommendation and Conclusion
5.1 Findings
5.2 Recommendation
5.3 Conclusion
Bibliography
Appendix
