"The study attempted to characterize the nature and determinants of bank distress in Nigeria, as well as the approaches adopted by the supervisory agencies to ensure that banks operate safe and sound practices. In doing this, it combined a non-normative (positive) model of supervisory action with a normative study of the CAMEL2 model that examiners use. Specifically, the objectives of this study are to: characterize the nature and extent of bank distress. Identify and evaluate determinants of bank distress. Describe and evaluate the early warning system (EWS) being used by the regulatory authorities in Nigeria to predict bank distress. Suggest and evaluate alternative approaches for assessing the health status of banks. Proffer policy recommendations for improving the efficacy of bank supervision in Nigeria. Section 3 describes the extent of bank regulation and supervision in Nigeria, while an analysis of the characteristics of bank distress in Nigeria is presented in Section 4. Determinants of bank condition are discussed in Section 5. We construct and evaluate alternative EWS models in Section 6,evaluate the effectiveness of bank supervision in Section 7 and draw conclusions in Section 8."