Affiliation:
1. Central Bank of Nigeria, Abuja, Nigeria
Abstract
Many bank failures have occurred in history. The lessons learnt from past bank failures remind us that any bank can fail, and they fail for different reasons. The first step to avoid the failure of a strong bank is to identify the factors that cause the failure of a strong bank. This paper focus on strong banks and identifies the reasons why strong banks might fail. The reasons why a strong bank might fail are numerous. The insights offered in the article can help existing banks to avoid a bank failure in the future. The insights also have financial stability implications which need to be taken seriously.