Distress in the Banking Industry Causes, Effects and Prevention

Abstract

The spate of bank distress in Nigeria in recent times has given great concern to many Nigerians including the researcher. Hence this study is carried out to - 1. Examine in details through a review of developments in the banking industry particularly Since 1986 the extent of distress In the banking .industry. 2. Determine the causes and effects of distress in the banking industry and 3. On the basis of the findings propose effective management and preventive measures for distress in banks. The researcher after a review of available literature on the subject, interviewed relevant bank personnel and customers, administered questionnaires and carried library research . Through the analysis and interpretation of the data thereof, the following relevant findings were made: 1. Both internal and external factors were responsible for bank distress in Nigeria.