ASSESSMENT OF CENTRAL BANK ROLE IN THE PREVENTION OF BANK DISTRESS IN THE BANKING INDUSTRY (2012-2022)

This project was been focused on the assessment of Central bank role in the prevention of bank distress in the banking industry from 2012 to 2022. The study examines the services of central bank in the view to the objective of this study to the Nigerian economy. The data collected from the respondents were analyzed using descriptive statistic to answer the researcher questions. The study adopts the quasi-experimental research design. The chi-square \chi^2 statistical was employed in testing hypothesis. The study reveals that the distress that occurred in the banking sector had affected the flow of the business in the country thereby cause economic challenges; findings show that increasing minimum capital requirement by the central bank has helped to improve bank liquidity and prevent bank distress. The research also reveals that bank capitalization has proven to be effective in managing bank distress. The study recommends amongst others that measures should be taken to improve the asset quality, expand the capital base and enhance the liquidity position; and cashless policy should be enforced by the commercial banks so as to reduce the movement of cash.