PROPOSAL: My main focus of writing this project goes this way, the importance of the managing and liquidating distress banks in sense that she carried out her study on who intend to ascertain how the assets of the distress banks should be disposed as a result of recovering in full the money deposited by the customers during the banking operation. The reason while this study brings out a lot of problem especially at the banking sector today in Nigeria. In recent time, some of the commercial banks has gone distress as a result of fraudulent and poor management. The role of accountant in managing and liquidating distress banks should be given a serious attention so as to see that all the necessary factors are followed accordingly in order to see the successful completion and execution of the system without incurring more lost any longer.
TABLES OF CONTENT
CHAPTER ONE:
INTRODUCTION
1.1 BACKGROUD OF THE STUDY
1.2 STATEMENT OF PROBLEM
1.3 OBJECTIVE OF THE STUDY
1.3 LIMITATION OF THE STUDY
1.4 SIGNIFICANCE OF STUDY
1.6 RESEARCH QUESTION
CHAPTER TWO
CHAPTER THREE
CHAPTER ONE
INTRODUCTION
Banks plays crucial roles in the process of economic development by mobilizing funds from the surplus spending units into the economy, and by on. Lending such funds to the deficit spending units fro investment, banks increase I the process. The quantum of national savings and investments through an appropriate investments multiplier, the volume of goods and services produced in an economy increases overtimes as a result of the investment projects embarked upon through banks funds.
Also through banks direct and indirect contributions towards the growth of the national economy, they (banks) succeed in promoting an efficient payment system, and in creating banking habits and in developing the society at large.
I intend to look at the possible reasons for bank distress and the effects of such failures on the rest of us before looking at “The Role of Accountant in Managing and Liquidating a Distress banks”.
A various times over the past five years of the structural adjustment programme (SAP) the banking industry had to cope with different types and forms of difficulties, all in a bid to record and sustain what one may call impressive performance we have for instance been at different times, the removal and late re-introduction of selling on interest rates.
The seemingly nectarous and dreaded stabilization securities have also become one source of treasury management policy devotement that banks have learnt to live with.
The term “distress” means great pains discomfort or serious sufferings caused by wants of money or mismanagement of money by bank officials which as we know is a complete relation of the trust reposed I them by innocent investors.
The role of accountant in managing and liquidating a distress banks are too much and cannot be over emphasized when liquidating a distress banks.
Accountants has to see that all the assets and liabilities of distress banks are being valued by expert values.
The accountant has to be fully involved in appointing an expert liquidator who would then sell the assets and liabilities of the distressed bank by means of auction to the general public.
In this case, it is not only that the property of the bank is being liquidated but also, the property of the debtors of the distressed bank. The liquidator has to fall back on the assets which the debtors of the bank used as their collateral when borrowing money from the bank.
The money being recovered from the proceed should be used to settle the creditors of the distressed banks. This is so because the bank has been turned “DISTRESS” by the Central Bank of Nigeria (CBN) as a result of its inability to meet up with the stipulated guidelines of having of capital and non-marketable assets base.
There are many problems which could eventually lead to bank
distress just as there are many possible causes of death of a human being.
Some of the problems are stated here but they are in no way exhaustive.
The researcher is precisely focusing mainly on the objective
of the managing and liquidating a distress bank in the sense that she carried out her study which intend to ascertained how the property of the distress bank should be disposed as a way of recovering in full or part of the money deposited by the customers during the banking operation.
The study is also designed to highlight the consequences of liquidating a distress bank which include how exactly the asset should be valued to make sure that the auctioneer does not pay less or making a pledge of paying later.
In order further, this course of study the following aims are being considered as some of the objectives of managing and liquidating a distress bank:
As a mater of fact, time posed a serious problem to the
research work because of the time constraint, the researcher was not able to visit all necessary places to undertake a general stuffy of the role of accountants in managing and liquidating a distressed banks. In order that the work could be finished within the specified time period, the researcher conspicuously avoided some procedures that are time consuming.
In as much as this research I study is concerned it is not a case study of any particular bank but rather it would serve as a general guide to the banking industry in Nigeria and other developing nations. It would aid management of most bank in taking certain decision relating to distress in banks.
Nigeria is facing a lot of problems today especially at the
banking sector. In recent time, some of the commercial and specialized banks gone distress as a result of fraudulent and poor management. Bank failure, and its inability to meet liquidating capability as from time to time is a good sign of it being turned distress in a short distant time. The role of accountant in managing and liquidating distress banks should be given a serious attention so as to see that all the necessary actors successful completion and execution of the system without incurring more lost any longer.
HYPOTHESIS
The study will test the following hypothesis
a. Ho: Whether this is any relationship between the increase in distress bank and the low recovering of debt from debtors by the distressed banks.
b. Hi: Whether this is a relationship between increased credit facilities by the distress banks to its customers and its loan recovering during liquidation as a result of auction seller.
In order to successfully carryout this project some research
questions were formulated as follows: -
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