ABSTRACT
In this work the researcher worked into different ways of preventing banking distress.
The work is divided into two chapters. Chapter one heated the permute encapsulating the general overview, statement of problem etc chapter two review related literature while chapter three handle the research methodology utilized in writing this project.
Chapter four is concerned with the presentation and analysis of findings, while chapter five the researcher summarized her findings made recommendation and concluded her work.
      It was discovered that bank should adhere strictly to the rates of the game, the regulatory/supervisory authorities should enhance the supervisory capacity.
CHAPTER ONE
- INTRODUCTION
1.1 GENERAL OVERVIEW OF THE STUDY
Financial sector distress is neither new nor peculiar to Nigeria. in fact, the phenomenon is almost as old as the industry. In spite of their best endeavors, financial sector distresses still occur in older banking societies like Britain, America, Spain, Indonesia and many others even all the moment (Cologun 1993 313. this assertion is the giving the fact that financial sector distress especially in banks occurred in Nigeria in the mid 50s when a total of 185 banks were reportedly established between 1947 and 1952 of which many of them failed (Nwankwo 1982 pg 47-48) the celebrated failure of Baccl-bank of credit and commerce international of U.S.A. In 1992 and the collapse of Britain’s 233 old barring bank in 1995 after a loss of $ 1billion (about N100 billion) are evidences that financial sector distress is rather new peculiar to Nigeria service.
      The last few years been both traumatic and revolutionary for the Nigeria banking industry accustomed to steady profits and little or no problems since 1959 when the CBN was established, the industry has in recent lines produced the largest number of technically insolvent and under capitalized banks. Currently, the magnitude of distress in the nations banking industry has reached an unperceived level thereby making it an issue of concern to the government, the regulatory authorities, the banker and general public service.
It should be noted that the banking system already in distress by the line the NDIC was established by then, about seven banks were known to be technically insolvent. The government at that time, did not embark upon a creasing exercise that would have removed the distress institution from the system because it was faired that such an action would lead to loss of public confidence and flight of foreign capital more which was no deposit insurance institution to expeditiously manage such bank.
- STATEMENT OF PROBLEM
This project is entitled distress management and prevention strategies for the Nigerian banking system. The last few years, no doubt Nigerian banking industry as a result of the harsh economic environment.
Although some level of success could be said to have been recorded in the last one of half years, especially in the area of macro economic stability, available records, however, have continued to show that the economic environment in which insured banks have been operating is very difficult one.
- OBJECTIVE OF THE STUDY
It should be noted that no matter the number of banks established without effective supervisory financial control, the objective would be deflated and subsequence bank winds up.
The aim of this study is to prevent distressed bank management of Nigerian banking system. In realizing these objectives should be.
1.1 Change of management
1.2 Assumption of control and management
1.3 Liquidation of distressed banks
1.4 Suspension of banking license
- SCOPE OF STUDY
      The study will occur a general review of the distress and management prevention strategies for the Nigerian banking system. And it will be elaborated in a way that one will understand it.
