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Critical Analysis Of Causes And Problem Of Financial Distress In Nigeria Banking Sector
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1.5 STATEMENT OF HYPOTHESIS
To come out with a reliable result, the following hypothesis were formulated and tested statistically.
1. Ho: Low capital base has not contributed to the financial distress in Nigerian banking sector.
Hi: Low capital base has contributed to the financial distress in Nigerian banking sector.
2. Ho: Inefficient management has not contributed to the financial distress in Nigerian banking sector.
Hi: Inefficient management has contributed to the financial distress in Nigerian banking sector.
3. Ho: Fraudulent practices have not contributed to the financial distress in Nigerian banking sector.
Hi: Fraudulent practices have contributed to the financial distress in Nigerian banking sector.
1.6 SCOPE AND LIMITATIONS OF THE STUDY
This
research work covers the causes and problems of financial distress in
Nigerian banking sector with reference to AFEX Bank Plc. In the cause of
this study, the researcher could not carry out the work extensively due
to the following constraints.
TIME CONSTRAINTS: Time was my
greatest enemy as I had to cope with my class work, assignments, home
work, and the project work at the same time, and more over, most of the
materials for the project work are not located in one place.
FINANCIAL
CONSTRAINTS: Finance was my major constraints since I don’t have enough
fund for running around and this hindered the full coverage of the
work.
1.7 DEFINITION OF TERMS
BANKS: Banks are financial
institutions, which hold themselves out to the public (individuals,
firms, organization, and governments) by accepting deposits and giving
out advances as well as performing other customers.
FRAUDS: Fraud is
intentional distorting twisting or changing of financial statement or
using criminal deception to deceive someone in order to achieve illegal
advantage
LIQUIDITY: Liquidity is inability of a bank to meet its liabilities as they mature for payment.
INSOLVENCY: Insolvency is when the value of realizable assets of a bank is less than the total value of its liabilities.
CAPITAL
ADEQUACY: Capital adequacy is when banks through proper fund management
has enough capital to serve as a fall back and at course, shock
absorber in the event of losses resulting from business transactions.
SHAREHOLDERS:
shareholders are the owners of the bank, whose names were described to
the memorandum of the bank when the bank is registered. This is done
through the purchase of the bank’s shares.
PAID UP CAPITAL: This refers to that part of the issued capital, which has been paid-up.
DISTRESS: This means great pains; discomfort or sorrow caused by wants money or other necessary things.
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ABSRACT - [ Total Page(s): 1 ]Based on the presentation and analysis of data on the topic CRITICAL ANALYSIS OF CAUSES AND PROBLEMS OF FINANCIAL DISTRESS IN NIGERIA BANKING SECTOR†the following are the major findings.Inefficient management has contributed significantly to the financial distress in Nigeria banking sector. This was approved statistically with the chi-square test techniques. It was also discovered that fraudulent practices are a big causes of financial distress in Nigeria banking sector. Based on the pres ... Continue reading---
