Performance evaluation of the regulatory institutions in the management of distress in Nigerian banking system
European Journal of Social Sciences
Department of Management and Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-ife, Nigeria
This paper presents a performance evaluation of the regulatory institutions in the management of distress in Nigerian banking system. Data were generated through a survey conducted among 480 workers from banking and financial institutions. The research identified some endogenous and exogenous factors as causes of distress in the banking sector. There was a significant association between bank fraud and distress, deceitful annual report and ineffective monitoring of the banks by the regulatory institutions. Distress in the banking industry was associated mainly with mismanagement and board squabbles. There was general consensus that a well-regulated banking system is the major antidote towards prevention of distress.