ROLE OF CENTRAL BANK OF NIGERIA IN PREVENTING BANK FAILURE IN NIGERIA
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ROLE OF CENTRAL BANK OF NIGERIA IN PREVENTING BANK FAILURE IN NIGERIA
CHAPTER ONE
1.1 STATEMENT OF THE PROBLEM AND PURPOSE OF THE STUDY
The goal of this study is to learn about the roles that the Central Bank of Nigeria would play in preventing bank failures in Nigeria, because people are concerned about the problem of bank failure in Nigeria.
Bank failures in Nigeria have caused numerous problems for our country’s economic growth. As a result, we want to know how the Central Bank of Nigeria will prevent it through its agents (C.B.N. and N.D.I.C.).
Problem: Because of the banking industry’s repeated failure, consumers have lost faith in keeping their money in banks.
The Objectives of the research
The primary goal of this research is to determine the functions of the Central Bank of Nigeria in controlling bank failure in the Nigerian economy.
1.2 THE REASON FOR THE STUDY
The primary goal of this research is to ensure that the banking business continues to grow. Bank failures must be controlled in an effective and efficient manner. Some banks failed because they were unable to meet the banking ordinance’s minimum capital requirement.
There is sufficient evidence to suggest that perceived stability in the business has resulted from monetary authorities’ protection since the last banking failure in the 1990s.
As a result, the primary goal of doing this research is to define the function of the C.B.N in preventing bank failures in Nigeria.
1.3 SIGNIFICANCE OF THE STUDY
Many parties will benefit from the writing, including bank management, shareholders, insurance firms, and customers.
Bank managers will profit from this article since it will help them understand how to implement the C.B.N’s measures and suggestions in order to succeed in their fight against bank failures.
Customers would profit from this article as well because it exposes the problem of bank failure in Nigeria.
The entire society will be aware that they are monitoring and supervising their funds as a result of this writing. They will also learn whether C.B.N. is involved in bank collapses.
1.4 BACKGROUND OF THE STUDY
Our current bank’s success or failure is determined on the quantity and effectiveness of our banking system. On the expertise, integrity, and effectiveness of our banking and finance directors. C.B.N. carries out bank supervision by preventing bank collapses,
and they collaborate with the Nigeria Deposit Insurance Corporation (NDIC).C.B.N. plays a significant role in insuring banks in the event of failure through moral suasion and other rules.
Again, the incapacity of both the CBN and the NDIC to function efficiently has been cited as one of the causes of distress in the Nigerian financial system, which leads to bank failure.
Bank failure is an issue in our economic growth and development of banks; so, the purpose of this research is to identify the key causes of bank failures in Nigeria and their consequences for the Nigerian economy and individuals.
These are the reasons for bank failure.
v The colonialist’s attitude
v An insufficient legal framework
v Possession
v Ineffective management
v Societal issues
v Political insecurity
v Extensive experience
1.5 DEFINITION OF TERMS
What exactly is bank failure?
Bank failure refers to a bank’s inability to meet its obligations to its clients, owners, and the economy as a result of a flaw that rendered it insolvent.
Furthermore, several other issues arose during the research process.
Financial: As is customary, there is insufficient capital to invest in investigating and fact-finding the problem of bank failure, which has aided in the preparation of his research work.
Management constraint: the respondent, particularly the bank branch manager, did not participate as expected, and the work as other departments visited were also hesitant to answer some of the questions given.
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