AN EXAMINATION OF THE IMPACT OF FAILED BANKS ON NIGERIA ECONOMY (1995-2005)
ABSTRACT
This research work in failed banker is with a view to examine its impact one the Nigerian economy.  The statement of problem in this research work aimed at finding if there are reductions in the flow of inventible resources that could be channeled to the productive sector of the economy.
Section II showed how the researcher made a random selection of 100 respondents from 3 selection banks arrived at a sample size of 50 which implies that 50 questionnaires were distributed and all were returned.
This is followed by identifying the forms and causes of bank failure in Nigeria banks in section III; this section was what the researcher was able to do which other researcher failed to do.
Section IV the major finding was summed up in just one sentence which is “Bank failure has almost crippled Nigerian economy and this implies that bank failure retards the economy’s rate of capital formations and ultimately the face of economic growth concluding with section V the researcher suggests that further researcher should research on the role of monetary authorities in bank failure prevention.
TABLE OF CONTENT
CHAPTER ONE
1.0      Introduction
1.1       Background of the study
1.2              Statement of the problem
1.3              Objective of the study
1.4              Research questions
1.5              Research hypothesis
1.6              Scope of the study
1.7              Limitation of the study
1.8              Definition of terms
References  
CHAPTER TWO (Literature Review)
2.0    Review of related literature
2.1       Definition of failed banks (via bank failures)
2.2              Review of the evolving patterns of bank structure and failure
2.3              Extent of bank failure in Nigeria
2.4              The impact of bank failure on Nigeria economy
2.5              Factors behind bank failure in Nigeria
2.6              Efforts to address bank failure in Nigeria
References
CHAPTER THREE  (Research Methodology)
3.0       Research design and methodology
3.1              Research design
3.2              Area of study
3.3              Population
3.4              Sample and sampling procedure
3.5              Instrument of data collection
3.6              Methods of data presentation
3.7              Methods of data analysis
References
CHAPTER FOUR (Date Presentation)
4.0       Date presentation and analysis
4.1              Date presentation
4.2              Data analysis (test of hypotheses )
Reference
CHAPTER FIVE (Conclusion)
Finding conclusions and recommendation  
5.1              Summary        
5.2              Conclusions
5.3              Recommendation
Bibliography
 CHAPTER ONE
 INTRODUCTIN
1.1              BACKGROUND OF THE STUDY
The importance of the banking section in any economy is derived from its roles of financial intermediation provision of an efficient payment system and facilitating the implantation of monetary policies.  In intermediation, banks mobilize saving from the surplus limits of the economy and channel these funds to the deficit units particularly private business enterprises for the purpose of expanding their productive capacity.  In operating the payment mechanism, the banking systems liabilities serve as the medium of exchange.  In the execution of monetary policies, bank serve as agents through which there policies are implemented.  Hence, an efficient and effective banking sector is essential not only for the promotion of efficient intermediation but also for the protection of depositors encouragement of healthy competition maintenance of confidence in, and stability of the system and protection against systematic risk and collapse. For the banking in industry of any economy to achieve there objective the industry must be stable safe and sound.
In Nigeria, there has been a rapid increase in the number of bank failure and the magnitude of the problem has reached an unprecedented level.
 Currently, the problem has assumed a generalized dimension thereby making it an issue of concern to the government, the regulatory authorities the bankers the general public and the international financial institutions such as the world banks and international monetary fund (IMF).
The purpose of this research work is to evaluate the consequences of banks failure on the Nigerian economy.  Bank failure means different things to different people.
To some people, a bank fails only when it ceases operation even if it has not been declared liquidated officially. In a wider bank which is unable to meet  its obligations to its stakeholder as at when due arising form weakness in its financial operational and managerial conclusion which could has rendered it either illiquid and/or in solve (CBN/NDIC, 1995)
The relevant stakeholder to a bank will include the depositors, the owners of the bank and the economy at large.  From the foregoing, it will be clear that failed banks will not only include the liquidated banks but also the problem banks that have exhibited some form of weakness in their financial operational and managerial conditions which have rendered them either illiquid and/or insolvent                
1.2              STATEMENT OF THE PROBLEM
In Nigeria, there has been a rapid increase in the number of failed banks and the magnitude of the problem has reached an unprecedented level. Bank failures in Nigerian banking industry is a problem that has of late assumed an intractable dimension.  The situation is such that regulatory authorities appear to be fighting  a losing battle in their bid to sanitize the system. This has of course resulted in the erosion of public confidence in the banking system and therefore the reduction in the flow of inventible resources that could be channeled to the productive sectors of the economy.
Therefore, that is why the researcher deemed it fit to examine the impact of there failed banks on Nigerian economy.     
1.3              OBJECTIVE OF THE STUDY
Because of the central role which the banking system plays on the growth and development of any economy the objectives of this study are therefore.
1.                  To find out if there is loss of confidence in the banking system
2.                  To find out if there is reduction in bank deposits
3.                  To identify if there is any reduction in foreign investments.
4.                  To find out if bank failure can lead to devaluation of the Nigerian currency.
5.                  To find out if bank failure can lead to unemployment through retrenchment  of workers.
1.4              RESEARCH QUESTIONS
                    The researcher intends to make a critical and empirical evaluation fo the impact of failed banks on Nigerian economy.
Towards this end appropriate answers to the following research questions become  necessary.
1.                  Is there loss of confidence in the banking system due to bank failure?
2.                  Is there any reduction in bank deposits due to bank failure?
3.                  Does bank failure lead to reduction in foreign investment?
4.                  To what extent can bank failure lead to devaluation of Nigerian currency?
5.                  Does bank failure lead to unemployment?    
1.5              RESEARCH HYPOTHESES  
1.         Ho:       Bank failure cannot to caused by poor portfolio management
            Hi:       Bank failure can be caused by poor portfolio management
2.         Ho:       Government’s debts owed to banks cannot lead to bank failure
            Hi:       Government’s debts owed to banks can lead to bank failure
3.         Ho:       Monetary authorities has no significant role to play in controlling
bank failure
Hi:       Monetary authorities have significant role to play in controlling
bank failure.
1.6              SCOPE OF THE STUDY
This research work is limited to Nigeria economy only. One to time, financial constraints and others, the researcher was unable to cover much ground.
  DEFINITION OF TERMS
1.         Insolvent:       Inability of bank to meet the claims of its creditors as and when they fall due.
2.         Stakeholders: Defined as people who have invested some amount of money in the bank.
3.         Bank failure: Defined and use here as the inability of banks to meet its obligations as and when due from weakness in its financial, operational and managerial conditions
4.         Depositors: Those who deposit money with the bank
5.         C.B.N:            Defined as the Central Bank of Nigeria
6.         NDIC:            Defined as Nigeria deposit insurance corporation