This research work examined the “Effects of Bank distress on the saving habit of the rural dwellers”. It investigated the causes and characteristics of bank distress in the Nigerian economy.

It is believed that these problems that hinder smooth banking habits in the rural areas will be evaluated to ensure safe and sound banking system.

Many related literature were reviewed as the researchers collected data for this work. In remote communities where banking habit was poorly developed in the exercise of changing bank notes in 1984 forced people to travel sources of miles to change their money and also made them realize that they need banks around incessant call for extension of bank branches to their areas.

Each chapter is designed in such a way as to portray the unique qualities and forms of this research work.

In conclusion, the effects of bank distress on the economy on the otherhand include the erosion of public confidence mostly to the rural dwellers in putting their money in banks.

TABLE OF CONTENT

Title Page

Approval Page

Dedication

Acknowledgement

Proposal

CHAPTER ONE

1.0 Introduction

1.1 Background of study

1.2 Statement of Problem

1.3 Purpose /Objective of Study

1.4 Significance of Study

1.5 Limitation of Study

CHAPTER TWO

2.0 Review of related literature

CHAPTER THREE

3.0 Research design and Methodology

3.1 Sources of data (Secondary data only)

3.2 Location of data

3.3 Methods of data collection (literature work only)

CHAPTER FOUR

4.0 Findings

CHAPTER FIVE

5.1 Recommendations and conclusions

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF STUDY

A bank can be defined as an organization whose principal operation are concerned with the accumulation f temporarily idle money of the general public for the purpose of advancing it to others for expenditures

John Paget defined a bank as “A corporation or person defined a bank as “A corporation or person(s) who accepts money on current account, pays cheques on such account on demand and collects cheque for customers”.

Oxford Advanced Learners Dictionary defines a bank as organization or a place that provides a financial service or a place where something a financial service or a place where something is stored ready for use.

The establishment of modern banking Nigeria dates back to the colonial era when the African Banking Corporation was formed in 1892 to distribute currency notes of Bank of England for the British Treasury subsequent developments were encouraged by colonial trade in the bid to address the credit needs of indigenous entrepreneurs, Nigerian later ventured into the banking business, initially through private initiatives and later through deliberate government policy.

The problem of distress in the financial sector, including the outright bank failure, has been observed in Nigeria as far back as 1930 when the first bank failure was reported indeed, between 1930 and 1958 when the Central Bank of Nigeria(CBN) was established, over 21 bank failure were recorded. However, the degree of intensity and scope of the distress has never been as serious as it has been observed since June, 1989 when the government directive to withdraw deposits of government and other public sector institutions from bank to the CBN exposed the weak financial condition of most financial institutions and severity of problem has progressively increased.

The distress condition has been traced to a wide range of causes, some of which are listed on literature review. Eventually, when distress came into the scene, fears of loosing funds to the banks influence negatively, the banking habit of the rural dwellers.