The aim of writing this project is to explain the problem and difficulties being face by banks as a result of bank failure with specific reference to banks.
To achieve this aim the research work has been classified under five chapters.
The first chapter deals with the introduction statement of problems, objectives of the study, purpose of study, significance of the study delimitation and limitation of the study.
The second chapter, deals with the literature review or review of literature/related.
The third chapter deals with the bad debt in banks.
The fourth chapter deals with statistical analysis of data and discussion of the result.
The last chapter deals with recommendations and conclusion.
One of Nigeria’s economic peculiarities is financial dualism. There is a formal financial sector made up of the ministry of finance, the Central Bank of Nigeria (CBN), banks, other financial institutions, Nigerian Stock Exchange (NSE), etc. Beside this formal sector exists an informal financial sector with people lending and borrowing directly from each other through methods like esusu, daily contributions and through cooperatives. The presence of a large informal finance sector in Nigeria had been blamed on several factors, some of which are; population concentration in rural areas most of which are unbanked, low literary level, loss of confidence in the banking system due to distress, elitist banking practices and absence of other financial institutions in the rural areas.
A major consequence of a large informal sector is difficulty in economic management. The experience of Nigeria in this regard is not different as the monetary authorities have had to watch impotently as their monetary policy measures fall short of desired objectives,.