ATTENTION:
BEFORE YOU READ THE
PROJECT WORK, PLEASE READ THE INFORMATION BELOW. THANK YOU!
TO GET THE FULL
PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953,
08168759420
TO GET MORE PROJECT
TOPICS IN YOUR DEPARTMENT, PLEASE VISIT:
BANK DISTRESS AND BANKING HABIT IN
DELTA-STATE: A CASE STUDY OF UGHELLI-SOUTH LOCAL GOVERNMENT AREA
ABSTRACT
The purpose of this study was to ascertain the bank distress and banking habit
of people in Ughelli south local government area. Seven banks were used for the
study. Questionnaires containing 18 items was administered. The main areas of
the questionnaire relate to: loss of confidence, reduction of saving,
unwillingness to patronize Nigerian banks, formation of negative opinion about
banks, device alternative method of saving their money.
Hence simple percentage method is the main statistical techniques applied in
the analysis of data collected. After the analysis of data and the testing of
hypothesis generated in the study, it was discovered the loss of confidence,
reduction of saving and formation of negative opinion about banks, can be the
consequence of bank distress and banking habit of people in Ughelli south local
government areas.
Consequence, it was recommended that, reconstruction of banks management with
matured, experienced and qualified people, owners to be quite distinct from the
banks, also recapitalization of the capital lease of the banks, prosecution of
unscrupulous customers to curb other people from defrauding the banks.
Furthermore, employment of qualified staff to the service of the banks and
financial assistance by the central bank.
TABLE
OF CONTENT
CHAPTER ONE
Introduction
1.1 Background of study
1.2 Purpose of the study
1.3 Statement of the problems
1.4 Research question
1.5 Specific objectives
1.6 Hypothesis
1.7 Significance of the study
1.8 Scope of the study
1.9 Limitation of the study
CHAPTER
TWO
Literature review
2.1 The history of bank in Ughelli-south LGA
2.2 Functions of bank
2.3 The role of banks in Economics Development of Nigeria
2.4 Problems of banking in Nigeria
2.5 Concept and nature of distress
2.6 How to determine and access bank distress.
CHAPTER THREE
Methodology
3.1 Research methodology
3.2 Population
3.3 Sample
3.4 Development of instrument
3.5 Method of data collection
3.6 Method of data analysis
CHAPTER FOUR
Presentation and
analysis of data
4.1 Data analysis
CHAPTER FIVE
Summary of findings,
conclusion and recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
5.4 Implication of this study
REFERENCES
APPENDIX
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The
place of bank in the life of any nation cannot be over emphasized for instant,
commercial bank started in Nigeria sometimes in 1891, the early generation
banks contributed tremendously towards the economic development of the country.
However, with the advent of second and third generation banks, there were sign
of distress. Indeed distress in banks became a big source of concern of the
entire financial system even though the scale was generally midst until 1989.
Before this time, serious incidents of distress were relatively few and
generally amendable to control by the monetary authorities. In the banking
industry for example, the number of banks adjusted technically distressed rose
steadily from 8 in 1990 to 42 in 1994 and 51 by the end of 1995 etc. As a
result of the central position of banks in the financial sector, it would be
safe to assume that issues as the relate to banks is to a large extent,
effectively of the financial industry.
The
banks in financial distress between 1994 to 1999 accounted for about N16.7
billion or 10.3 percent of the deposit liabilities of the banking system and
N15.6 billion or 15 percent of the systems outstanding loans and advances. More
than two thirds of the aggregate loans of such banks were non-performing while
their aggregate adjusted capital stood at N4.7 billion. The extent of distress
in the primary mortgage institution, community banks and financial companies is
not different from that of the conventional banks invariably, a good number of
these institutions have been closed down while cases of breach of contractual
obligation to depositors abound. Therefore, this study aimed at identifying the
banks distress and banking habit of potential customers using the situation in
Ughelli south Local Government Delta State.
1.2 PURPOSE OF THE STUDY
This
project work intends to know the meaning of banks distress and banking habit
consequently, the purpose of this study was to determine the effect of banks
distress and banking habit of Ughelli south people.
1.3 STATEMENT OF THE PROBLEMS
The
problem of the study relate to find out the effect of banks distress and
banking habit of Ughelli south local government area. In the late 1990s and
early part of the 2000, the country suffered greatly from a stagnated and crumbling
economy. The banking sector which forms a part of the nations economy was
adversely affected to the extend that, its effectiveness or efficiency became
questionable as many banks went into liquidation and folded up. During this
period, the country witnessed a trend of “failed banks”.
Many other economic issues contributed in this aspect, there was high level of
inflation in the economy due to ever increasing prices of goods and service in
the market, this in the long run affects savings. Since the banking sector
deals mainly with money, for some time now, the value of the naira has fallen
in the international market. This devaluation of the nations currency has
generally affected monetary transactions. Apart from these, the issue of high
rate of unemployment and poor standard of living have reduced the purchasing
power of the people. That is why income per capital is low in the country. This
again is reflected in the people’s savings capacity.
In addition to these problems, there was also an instruction from the apex bank
governor Prof. Charles Soludo in continuation to the economic reform programmes
of the present democratic dispensation to define a particular shareholders fun
to be met by the 89 commercial banks in Nigeria in which case December 2005 was
given as an ultimatum or deadline to meet up with the N25 billion naira
capitalization fund. But only 25 banks out of the 89 banks in the country met
this requirement while the remaining became distressed or folded
up.
1.4 RESEARCH QUESTION
The
following research question were generated in this study:
1. Does banks distress discourage customers from patronizing
banks?
2. Does banks distress make customers to loss confident in
Nigeria banks?
3. Does banks distress lead to reduction in the amount being
deposited by customers?
4. Does banks distress make customers to device alternative
methods of savings their money?
5. Does banks distress make customers to form negative opinion about
banks in general?
1.5 SPECIFIC OBJECTIVE
The
following specific objectives were achieved in this study:
1. To find out whether distress in banks discourage customers
from patronizing banks
2. To ascertain whether distress in banks lead to the reduction
in the amount being deposited by customers
3. To find out whether distress in banks make customers to lose
confidence in Nigeria banks.
4. To find out whether distress in banks made customers to
device alternative method of saving their monies.
5. To ascertain whether distress in banks make customers to
form negative opinion about banks in general.
1.6 HYPOTHESIS
The
following hypotheses were tested in this study.
1. Distress in banks does not significantly discourage
customers from patronizing banks.
2. Distress in banks does not significantly lead to the
reduction I the amount being deposited by customers.
3. Distress in banks does not significantly make customers to
device alternative method of saving their money.
4. Distress in banks does not significantly make customers to
form negative opinion about banks in general.
5. Distress in bank does not significantly make customers to
loose confidence in Nigeria banks.
1.7 SIGNIFICANCE OF THE STUDY
This
study in that:
1. The study will allow government and people in general to
know more about the bank distress and banking habit.
2. The study will serve as a key or forum for manager’s on how
to improve the technical on banking habit.
3. In addition, the study will serve as a precedent for other
people who may wish to make a research on the banks distress and banking habit
of Ughelli south people.
1.8 SCOPE OF THE STUDY
The
study is designed primarily to ascertain the bank distress and banking habit of
people in Ughelli south local government area. In doing this, the researchers
limited themselves to finding out whether bank distress lead to:
Discouragement,
I loss of confidence, reduction of deposit, alternative method of saving money
and negative opinion on the part of customers.
AFFILIATE LINKS:
Comments
Post a Comment