The banking industry of the Nigerian economy is today passing through what might seem the roughest phase in its history. The wave of insolvency or distress in the sector is very unprecedented comparable only to what happened during the 1st era of bank failure in Nigeria 91953-1957) and the era of free banking (1892-1952) was such that generated under stand able apprehensive among the banking public.
Because of the prominent and sensitive role the banking industry plays in the determination of the buoyancy of any economy, its present state has agitated the government and people of Nigeria. In a bid to correct this unhealthy development the regulatory authorities ie. the central bank of Nigeria (CBN) and the Nigerian Deposit Insurance Corporation (NDIC) have devised and implemented many novel policies to check this drift. Yet the cankerworm continues to eat deeper into our banking system.
The issue of problems banks and management crisis in the banking industry has become a disturbing one in Niger.
Given the consequences of bank failure, the problems has become a major source of concern to the government the regulators of financial institution and to the general public.
Unfortunately, the problem has caught up with us gain in the Nigerian financial system. In the last ten years, sevens banks have failed some have been acquired by the central bank of Nigeria and the management of many other has been taken over by the central bank of Nigeria.
Currently, over 40 banks are adjudged technically insolvent by both the CBN and NSIC. The government of Nigeria has understandably taken stringent measure to address the situation. One of such measures is the enacted failed banks (Recovery of debts) and financial malpractices in banks decree No 18 of 1994.
The adequacy or effectiveness of these measures is yet to be completely ascertained. However, the effective resolution of the problem requires a thorough investigation of the whole issue of bank distress in Nigeria. There is the need to conduct and in-depth research into the nature, the cause, the consequences and the remedies of failing banks. This project on management crisis in the banking industry is a bold attempt to provide detailed information on the various facets of bank failure and distress in Nigeria.
It has also appraised the existing policies and regulations as well as highlighted the merits and demerits of such policies in line with check further bank failure in Nigeria. Management crisis in the banking industry has also put into proper perspective the major cause of bank insolvency and failure.
The project is thoroughly researched; it is based on copious data quoted from actual case materials on the subject. The research also presented a well-researched performance rating or analysis of the banks in Nigeria today to guide prospective investors and customers