EFFECTS OF BANK DISTRESS ON THE SAVING HABITS OF THE RURAL DWELLERS

ABSTRACT
This research work examined the “Effect of Bank distress on the saving habit of the rural dwellers” it investigated the causes and characteristic of bank distress in the Nigerian economy.
Many related literature were reviewed as the researchers collected data for this work. In remote communities where banking habit was poorly developed the exercise of changing bank notes in 1984 forced people to travel scores of mills to change their money and also made them realize that they need banks around incessant call for extension of bank branches to their areas. The effect of bank distress on the economy on the other hand included the erosion of public confidence mostly to the rural dwellers in putting their money in the banks.

Table Of Contents
Title Page
Approval Page 
Dedication
Acknowledgement 
Abstract
Table Of Content

Chapter One 
1.0 Introduction
1.1 Background Of Study 
1.2 Statement Of Problems 
1.3 Purpose Of Study 
1.4 Research Question
1.5 Significance Of The Study 
1.6 Delimitation Scope And Limitation
1.7 Definition Of Terms

Chapter Two 
2.0 Review Of Related Literature 
2.1 Meaning And Characteristic Of Distress 
2.2 Cause Of Bank Distress In Nigeria 
2.3 Factors Hindering Smooth Saving Habits Of The Rural Dwellers,

Chapter Three 
3.0 Research Designs And Methodology 
3.1 Sources Of Data 
3.2 Location Of Data 
3.3 Method Of Investigation

Chapter Four 
3.0 Summary And Finding

Chapter Five 
5.0 Recommendation
5.1 Conclusion
References And Bibliography 

CHAPTER ONE

1.1 BACKGROUND OF STUDY
A bank can be defined as an organization whose principal operation are concerned with the accumulation of temporarily idle money of the general public from the purpose of advancing to others for expenditures. 
John page defined a bank “A corporation or person(s) who accept money on current account, pays cheques on such account on demand and collects cheque for customers” 
Oxfords advanced learners Dictionary define a bank as an organization or a place that provides a financial services or a place where something is stored ready for use.
The establishment of modern banking in Nigeria dates back to the colonial 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 enterprises, Nigerian late ventured into the banking business, initially through private individual initiatives and later through deliberate government policy.
The problem of distress in the financial sector, including outright bank failure, has been observed in Nigeria as back as 1930 when the first bank failure was reported indeed, between 1930 and 1958 when the central bank of Nigeria (CBN) was establishment over 21 bank failure were recorded.
However, the degree of intensity and scope of the distress has never been as serious as has been observed since June 1989 when government directive to withdraw deposits of government and other public sector institution from bank to the CBN exposed the weak financial condition of most financial institution and the severity of problem has progressively here used.
The distressed condition has been traced to a wide range of causes, some of which are listed on literature review. Eventually, when distress came to into the scene, fears of loosing fund to the banks influenced negatively, the banking habit of the rural dwellers.

1.2 statement of problems 
with the wave of distress spreading in the finance companies, community banks and primary mortgage institutions, a total of 24 banks were distressed in 1933, ad against 10 in 1992, 31 finance house were in default of malures obligations 456 complaints against 156 finance companies for non resumption of matured funds, however, total assets and liabilities of 395 finance firms stood at N13.38 billion in 1993 as against N2.44 billion reported for the proceeding year (1992).

THE SATIATION WAS ATTRIBUTED TO THE FOLLOWINGS 
1. Prevailing economic recession, policy induced hock 
poor and detonating asset quality arising from large portfolio of non-performing credits non-maintenance of assets and liability.
2. Poor management bothering on sharp practice and lack of experience which is the most serious problem, associated with bank distress in the rural area.
3. Ineffective, inefficient and poor performance of the financial sector on the role of promoting and supporting economic development in the rural areas. 
The problem in focus above, triggered off the interest of the researchers to carry out study in the area.

1.3 PURPOSE OF STUDY 
Under the purpose of study, which in other words, is the objectives of study the researcher will try to ascertain the following 
1. What bank distress is all about 
2. How it has affected the banking habit of the rural dwellers. 
3. The causes of bank distress.
4. To enlighten the rural dwellers on the need you putting their money in banks.
5. To ascertain the percentage of commercial banks is the rural areas.
6. To encourage and ensure effective rural savings.

1.4 RESEARCH QUESTION 
1. What is bank distress 
2. What are the causes of bank distress 
3. How does bank distress affects the saving habit of the rural dwellers? 
4. What can be done to prevent bank distress? 
5. How should rural dwellers be enlightened on the need of putting money in bank.

1.5 SIGNIFICANCE OF STUDY 
In discussing the effect of bank distress on the saving habit of the rural dwellers the researcher have some important beneficiaries which include the following:
a. THE BANKING SECTION:- From the work the management should know the damages, distress in causing the conceptions of the bank dwellers towards savings in the bank. This will make the management seat up an enunciate managerial policies that are capable phasing out cases of distress in banks.

b. THE RURAL DWELLERS: Their benefit is indirect, it doesn’t appeal to them directly since distress is the effects on their saving habit.
Distress in bank will be eradicated to enable bank flourish well, so it is that benefit (such as rehabilitating the management so as to restore confidence and safely and area) that the banks get that will influence them directly. They will see it themselves, people in the rural area will save their money in banks and get them anytime they want. They will allay the fear in the rural dweller and energies their spirit of putting their money in banks. This is a result of powerful recommendations and suggestion made in this work.
c. ACADEMIC INSTITUTION:- This work is relevant to the institution and the students in the field of management sciences. Especially those in banking and finance in the sense that it will improve their literate review purposes, some copies of this work will be kept in the institution library for subsequent researchers for further research references.
d. THE GENERAL PUBLIC:- It is also significant to everybody these include mostly the investors, pubic libraries and research institution, where copies of this work will be kept and the general public can go and get copies, read and now known what is going on at the rural areas pertaining their banking habits.
e. INVESTOR: The study exonerates fears the investors have from saving in the bank due for distress because the investors would not like to dump the little they have with the bank.
f. PUBLIC LIBRARIES:- This work will increase their stock of books for research purposes by researcher. 
g. RESEARCH INSTITUTES:- It is significant to the researcher institutes, because they keep those research work for further research by researchers.

1.6 DELIMITATION SCOPE AND LIMITATIONS 
Delimitation: This work is delimited to the effects of distress to the general economy the use of primary data questionnaire method and interview methods are also delimited in this project work.
SCOPE: This study covers the effects of bank distress in the saving habit of the rural dwellers. 
LIMITATIONS: The following problems, were encountered during the project work.
a. TIME FACTOR: No time is specifically given for the term paper work, one will be attending lectures and at the same time researching from the work there is not time to go to the library. Achievers etc for the project work or even market survey as the need may be.
b. LACK OF RESEARCH FACTORIES:- lack of text books or reference materials which contains the effect of have distress on the saving habits of the rural dwellers were hardly seen or found which made it difficult for the researcher to get enough facts.
c. SHORT OF FINANCE:- back of money or financial problem at time limit researcher from group to the villages to get facts as a man be needed for the works.

1.7 DEFINITION OF TERMS 
1. Collateral:- Stocks or bound pledged as security for repayment of a loan.
2. Unscrupulous not doing guided by coincidence not held back from dong wrong.
3. Amity: Friendship is friendly relations between persons or countries.
4. Financial intermediaries: Like finance companies primary mortgages institution etc who serve as a go-between o. link in the financial institutions.
5. Malase: feeling of badly discomfort, but without clear signs of a particular illness.
6. Parlance: use or choice of words, ways of speaking.
7. Default: Fail to p[perform a duty or to pay a debt.
8. Allay: make something (e.g) pain, trouble, excitement fears less.

REFERENCES
Ebhodaghe J.D. (1994) Boardroom /management practice 
and distress in the banking system, Ndic quarterly, vol4, No 2, pp1525.
Okafor F.O (1992) fiscal and monetary policies in 
deregulated banking environment the Nigeria banking and finance industry in future Lagos FITC, PP 126-186. 
Ade wunmi wole (1992)” Distress in the financial system the 
Niger banking and finance industry in transition banking finance industry in transition industry in transition shaping the future the future Lagos FITC pp. 99-113.
Okafor F.O. (1992) Implication of de-regulation of the
financial system on financial intermediation by banks paper delivered at the 1994 animal banking seminar of the Hared institution of bankers at Nike lake resort Hotel, Enugu.
The Bullin a publication of the CBN vol. 14 No 3 July, 
September. 1990 p. 35.