CHAPTER ONE

 INTRODUCTION

1.1            Background of The Study.

The introduction of banking system emerged in 1891 but actually

Started in 1892. The ACB bank, but when the bank was managed by colonial masters there was a lot of disparity in employment given out loans to Nigeria indigenes and also having their head office in London. The Nigeria citizen objected to that and formed their own bank which was ruined by poor management, fraud, inadequate capital and other problems.

            Bank distress has always being the case, in 1950’s we have 25 banks got distressed. In 1980’s the IBB Babangida Administration introduced SAP to reduce the over dependence on oil sector to Agricultural sector and bank deregulation. Many banks also got distressed, because of these, in march 1988, the Nigeria government thought of establishing Deposit insurance scheme as obtainable in other countries of the world like in America it was introduced in 1933 to regulate and monitor banks failure and distress because of this, the Nigeria deposit insurance scheme was into operation in June 1989 to regulate