Abstract:
The Study was motivated by the need to establish whether banks in Nigeria are actually distressed.
The customers and personnel of Savannah Bank Plc, and two other banks were surveyed in the study.
The research instruments used for data collection were mainly questionnaire and interview guide. Data collected were organized and analysed by putting them into tables, frequencies and percentages, the test of hypothesis was based on the chi-square.
Data analysis and interpretation produced the following findings.
1. Institutional factors, political and economic crisis constituted the lead causes of distress in Nigerian banking system.
2. Impossible collateral requirements constitute the largest barrier in obtaining loan from banks which represent 60 %.
3. Computer services in the banking sector is satisfactory with minimal negations occasionally (wither as a result of internet or power failure).
4. Bahaviour and actions of bank personnel shows that they are sensitive to and work towards the satisfaction of customers.
Based on the finding the following recommendations were put up to forestall further banking distress in Nigeria.
1. The roles of the regulator, Government and the society to be strictly complied with in the banking sector.
2. The roles of the Board of Directors in ensuring solvency should be upheld strictly without compromise.
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