Effect of bank failure in nigerian economy”

Thesis Overview

<p> </p><p><strong>2.0 REVIEW OF RELATED LIBERATION</strong></p><p>This chapter reviews relevant texts or iterative of the contributions of scholars and researcher on bank and bank related issues. Such issues that are contained here are concepts of banking the role of banks in Nigeria economic development causes of bank in Nigeria economic development, causes of bank failure of the regulatory authorities to prevent failure of banks.</p><p><strong>2.1 CONCEPT OF BANKING</strong></p><p>Any realistic appraisal of banking related issues must start by taking into cognizance the concept or meaning of banking. This brings about the question of what is bank? What function role do banks perform in any economy?.</p><p>Oxford advanced learner dictionary of current English.</p><p>“Bank” mean the establishment for keeping money and valuable safely” the money being paid out on the customer’s order (by means of cheque)</p><p>Funk and Wagnauti’s (new encyclopedia) define a bank as a “term applied to describe a variety of institution established for one or more purposes the purpose according to them include making loan and extending credit to facilitate the transmission of founds by cheques and by bills of exchange and hold money on deposit and to disburse it, to exchange the currency for that of another and issue money.</p><p><strong>2.2 THE ROLE OF BANK IN NIGERIA ECONOMIC DEVELOPMENT</strong></p><p>Bank have numerous roles in the economic development of any nation this depends on the objective for setting up such bank example of bank are commercial banks merchants band development banks to mention a few.</p><p>Cardose (1979) commenting on the role and contribution of commercial bank to Nigeria’s economic development he emphasized “commercial bank are dual intermediates in the domestic and international spheres. He stressed that at the domestic level the bank mobilize funds from the “surplus” sector to the deficit sector of the economy. While at the international level they provide the channel through which foreign exchange is transferred to or received from other countries in settlements of international transactions commercial bank has been emphasized on due on due to the special serve which they render which other bank might not render which includes; acceptance of saving and current</p> <br><p></p>