Banks are generally recognized and accepted to be a body that play a catalytic role in the process of economic growth and development. In any society, they are the

The brain of economic stimulation and growth. When there is bank failure in any economy, such economy is terribly affected. 

    Bank are the holders of the bulk of the nations monetary supply. This is becoming increasingly so as the public awareness of the services of banks increase and as the physical presence of banks rises throughout the country. Because of the supply of money and credit needs, banks no doubt occupy of any country.

    According to Alashi S.O (1991). Empirical evidence exists which suggest a positive correlation between real economic growth and bank assets, and between money supply, bank assets and economic development.

    Banks failure and associated run on banks limit the ability of banks to create. Money, jeopardize the payment mechanisms and disrupt bank-lending activities (Nyong 1995).