International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

An Appraisal of the Impact of Bank Distress on Nigerian Economy, 1986-2010: An Empirical Investigation
Mayuku, Gbubemi John; Ogude, Benedicta Adaeze; Ibeh, Soni E.; Ohwofasa, Bright Onoriode

The study attempts to evaluate the impact of bank distress on the Nigerian economy as well as the determinants of bank distress in Nigeria from 1986-2010. Two linear regression models were estimated in which impact of interest rate, inflation rate and back crises was negative on economic performance while that of exchange rate, domestic credit and past value of real GDP were positive. Similarly, the study found that inflation rate, exchange rate, broad money supply and corruption in the banking industry were potent sources of bank distress in Nigeria. The paper recommended that to ensure a sustained growth for the Nigerian economy, the various macroeconomic variables that constituted impediments to growth should be well managed while corruption at all levels in the industry must be dealt with

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