THE ROLE OF ACCOUNTANTS IN MANAGING AND LIQUIDATING DISTRESSED BANKS

INTRODUCTION 1.0BACKGROUND OF THE STUDY Accountant is a person who undergo a training in accounting system. He has to obtain a certificate as an evidence that he has concepts of accounting efficiently A banker is any person carrying out the business of banking which includes accepting of deposits from customers, accepting and keeping others valuables from their customers etc. Management can either be persons vested with the responsibility of directing the affairs of an organisation or an act of doing such. Liquidation is then that process and work which the appointed liquidation should do. 1.1OBJECTIVES OF THE STUDY: This research work studies the role of accountants in managing and liquidating distressed banks. More especially the objective of these study are:   To find out the roles which the accountant can play in managing and liquidating distress banks. To find out the roles which the ways that the banks can liquidated. To find out the problems being encountered by the management during this period.
2.0: THE NIGERIAN BANKING SYSTEM/HOW IT OPERATE.Sen S.N in his work caption “Central Bank in under developed money market” defined Central Bank as the apex financial Institution which is charged with the availability and direction of money and credit in an economy with a view to achieving some desired economic objectives.Dr Orjih stated in element of banking that there become with the need for a monetary control authority in Nigeria with the Introduction of international and expansion of internal trade. It should be noted that as the apex financial institution, Central Bank of Nigeria according to “ the Guardian Vol.14 August 1997 that thee Central Bank issues guideline is a sort of control imposed by Central Bank through the use of the following: Bank rate, open market operations (O.M.O),legal reserve ratio, liquidation, special deposits, directives and moral sensation.In as much as these guidelines have issued by the C.BN., the commercial and other banks in Nigeria are obligated to function in accordance to this guidelines, failures on their part, will result to contravention of CBN Act of 1958.Commercial and other banks renders some functions to the public as, deposit acceptance, granting of loans and over draft facilities agency services, safe custody facilities, providing states report, standing order services, cash credit facilities, providing night safe facilities, executory functions, buying and selling of shares tyo customers, loans syndication, security under writing, private placing of securities,  investment advice and portfolio management, mergers and acquisition,. Medium and long term loans, equipment leasing, acceptance credit, wholesales, banking , feasibilities studies, export promotion scheme, hire purchases.
2.1DISTRESSED IN BANKSICAN News Vol.2 1997 reported that incidental distress is a function of banking behaviour, it shows that banks like natural human beings can also show signs of ill- health and would need the services of a medical team of management specialist, financial and investment analysis, accountant, marketing specialist, technocrats and human resource psychologist and trainers.Group by the assessment report of NDC, bank s seem to become distressed on daily basis for instance , between march and December 1994, 16 banks were distressed.Another remarkable failure is the ratio of non – performing loans, advance and total loans advances and lease which is 63.5%