The Relationship between Liquidation and Banking Industry Stability in Nigeria (Published)
The relationship between liquidation and banking industry stability has helped to sustain public confidence in the solvency of the bank. The purpose of this project work was to investigate the relationship between liquidation and banking industry stability in Nigeria. The study used quantitative time series data and special package for social sciences (SPSS) method during analysis. The result of the test indicates long run relationship between dependent and independent variables. The result of our analysis shows that there is long run relationship between the level of bank failure and stability of Nigerian banking industry. The study also found that efficient management of non-performing loan is necessary for the stability of Nigerian banking industry. The implication of this is that if the policy makers did not control the level of non-performing loan, it will continue to bring about bank failure. We therefore recommend that, there is an urgent need for effective monitoring of the level of bank failure in Nigeria to allow for acceleration of banking industry stability. This is necessary for its positive effect on the bank stability
Keywords: Bank Failure, Banking Industry, Liquidation, Non-performing Loan., Stability