ABSTRACT
This research work examined the “Effect of Bank distress on the saving habit of the rural dwellers” it investigated the causes and characteristic of bank distress in the Nigerian economy. Many related literature were reviewed as the researchers collected data for this work. In remote communities where banking habit was poorly developed the exercise of changing bank notes in 1984 forced people to travel scores of mills to change their money and also made them realize that they need banks around incessant call for extension of bank branches to their areas. The effect of bank distress on the economy on the other hand included the erosion of public confidence mostly to the rural dwellers in putting their money in the banks.
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