Effect of Bank Failure in Nigerian Economy

Effect of Bank Failure in Nigerian Economy

Effect of Bank Failure in Nigerian Economy


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Abstract on Effect of Bank Failure in Nigerian Economy

The aim of the project is to provide information to the public on the “effect of bank failure in Nigeria” it is geared towards bringing to light some of the activities or services rendered by the banking industry bank failure causes and the effect to it.  The project is made up of five chapters.

The chapter deal with the interaction, this takes about the background information about the evolution of the banking system and bank failure.

The seconding chapter deals with review of related literature in this topic high lighting different writing opinion concerning bank failure causes and bank depositors it also discusses the roles of banks in Nigeria economic development.

More so the third chapter deals with the procedure and sources include background information population and sample construction of instrument the statistical method used in the analysis of the various data etc.

The further chapter discusses the date analysis and interpretation it also spiffed the responses of the respondents from the various research questions.

Finally chapter five provides the summary of the whole study recommendation conclusions and also area of further research.   


Chapter Two of Effect of Bank Failure in Nigerian Economy


This chapter reviews relevant texts or iterative of the contributions of scholars and researcher on bank and bank related issues.  Such issues that are contained here are concepts of banking the role of banks in Nigeria economic development causes of bank in Nigeria economic development, causes of bank failure of the regulatory authorities to prevent failure of banks.


Any realistic appraisal of banking related issues must start by taking into cognizance the concept or meaning of banking.  This brings about the question of what is bank? What function role do banks perform in any economy?.

Oxford advanced learner dictionary of current English.

“Bank” mean the establishment for keeping money and valuable safely” the money being paid out on the customer’s order (by means of cheque)

Funk and Wagnauti’s (new encyclopedia) define a bank as a “term applied to describe a variety of institution established for one or more purposes the purpose according to them include making loan and extending credit to facilitate the transmission   of founds by cheques and by bills of exchange and hold money on deposit and to disburse it, to exchange the currency for that of another and issue money.      


Bank have numerous roles in the economic development of any nation this depends on the objective for setting up such bank example of bank are commercial banks merchants band development banks to mention a few.

Cardose (1979) commenting on the role and contribution of commercial bank to Nigeria’s economic development he emphasized “commercial bank are dual intermediates in the domestic and international spheres.   He stressed that at the domestic level the bank mobilize funds from the “surplus” sector to the deficit sector of the economy. While at the international level they provide the channel through which foreign exchange is transferred to or received from other countries in settlements of international transactions commercial bank has been emphasized on due on due to the special serve which they render which other bank might not render which includes; acceptance of saving and current




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