ABSTRACT
The history of banking development in Nigeria has been punctuated by periods of
distress in the sector. The earliest is in the 1950s. Another wave of distress is
followed in the 1990s, which elicited the use of corporate restructuring as a
strategy in addressing the problem. In the light of the overall implications and
effects of the distress factor on business survival, this research examined the
influence of corporate restructuring as embarked upon by banks in tackling the
problems with particular emphasis on the just concluded restructuring exercise of
Union Bank.
In conducting the research, the views of various authors in relevant
fields were examined to establish the historical background of the problem and to
definite key concepts relevant to its resolution. Data for analysis were also
sourced from published materials as well as from a field survey of the customers
of Garden avenue Branch of Union Bank. The staff of the bank were also
interviewed/. Collected data were presented in tabular forms. From the analysis of
the generated data, it was observed that the introduction of new innovations in the
areas of new bank products manpower development and the on-line real time
computer network has led to improved customers service of the restructured
banks. The positive effect of this on business survival is seen in the steady rise in
the bank customers, growth in the assets base, increase in profitability, capital
adequacy, growth in the share market prices and the overall good health of the
restructured banks. However, these could not have been achieved without some
negative social impacts as observed in the displacement of human labour by the
computer technology resulting in the increased rate of unemployment in the
society. A major highlight of the research was that banks did not show enough
concern for operating with setout guidelines and regulations unsecured borrowing
by bank die directors which later turned out to be bad debts remains the greatest
treat to the banks. The researcher thus recommended that banks should always
comply fully with operating guidelines. The regulatory authorities should, on their
part, become more vigilant to their regulatory roles and impose strict sanctions
for contraventions. A detailed study was also recommended on the social impact
of labour displacement by the computer technology. The research concluded that
corporate restructuring has led to improved performance in the Nigerian sector
