Project Topic:

BANK FAILURE IN NIGERIA AND MORDERN SYSTEM OF COMPUTER BANKING TO BRING INPROVEMENT.

Project Information:

 Format: MS WORD ::   Chapters: 1 - 5 ::   Pages: 66 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   1,532 people found this useful

Project Department:

ACCOUNTING UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

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CHAPTER ONE

BACKGROUND OF THE STUDY

Bank has been defined in various ways by different people. It is basically a service industry operated by people for the general interest of the public providing a mechanism for the mobilization of finds from surplus units in the economy and channeling them to the deficit units through extension of credits. The link between this surplus and deficit is actually vital because it facilitate business transaction and economic development. As an economic unit. The business enterprises acquires organizes and transforms factors of production in the activity of producing goods and services, the way in which these goods and services or input factors are combined and transformed units an output flow may be considered as problem of maximizing an output from a given input. As a result, the advent of banking institution and its scope limitation was to that business activities findings their expressions in monetary terms.

The banking institution is defined in section 61 of the bank and financial institution decree sub-section 21 of 1991 as a business of receiving cheques, deposits on current accounts saving accounts or other account like paying or collecting cheques drawn by or paid in by customers, provision of finance or such other business or services for the government and the entire economy

1.1     SCHEDULE OF BANKS IN NIGERIA

The banking system in Nigeria is controlled by one body known as the Central Bank of Nigeria (CBN) which serves as a clearing house fro economic purpose. It veins of control in the naming include Commercial Bank, merchant banks, special banks like mortgaged bank, development banks such as Nigeria banks for commerce and industry, Nigeria agricultural and cooperate banks, peoples bank and community banks.

The banking system is a regulated sector of government and we could understand that its nature of activities spelt out the position it occupy in the economy since the funds they lend to deficit units are owned by third parties, therefore prudence on accounting theories and principle4s demands that such funds should be managed properly to sustain the confidence of the depositors. As a result of this prudential requirement, the authorities would want to interven in the operation and control of the banking system to correct all the short coming of the price fixing mechanism in ensuring that what is commercially reserve for an individual bank also approximate social

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