Bankruptcy prediction through financial strength analysis, a case study of trade bank Plc
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Date
2006
Authors
Journal Title
Journal ISSN
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Publisher
Department of Business Administration, University of Ilorin, Ilorin.
Abstract
Loss of depositors’ funds, loss of jobs, insecurity of property and investment as well as consequential loss of confidence coupled with other concomitant effects of bank failure had reduced the value of Nigerian banks as the live-wire on which the payment system relies.
This study measures the bankruptcy status of Nigerian banks with a view to determining their potential of failure of using Trade Bank Plc; as a case study.
The study however, made use of secondary data only which were obtained from the published annual financial statements over a period of five years ended 2002, while the analysis was carried out through the use of Altmans Multiple Discriminant Analysis model (Z Scores).
It was concluded that the bank has a high potential of failure as evidenced by poor operational performance, low Zeta score and recommends a drastic redress in terms of profitability, liquidity and effective credit management.
Description
Keywords
Bankrupty, Financial stregth, bank, depositors confidence
Citation
Bankruptcy prediction through financial strength analysis, a case study of trade bank Plc; Advances in Management. 5(1); 105- 110,