Covenant Journal of Business & Social Sciences (CJBSS) Vol. 8 No.1, June 2017 An Open Access Journal Available Online Altman’s Z-Score Discriminant Analysis and Bankruptcy Assessment of Banks in Nigeria Nwidobie Barine Michael Department of Accounting and Finance Caleb University Lagos Barikem@yahoo.com Abstract: This study aims to determine the distress level subsisting in the bridge banks set up by the Central Bank of Nigeria in 2011 to take over the nationalized banks; and the 2011-classified unsound banks using the Altman‟s discriminant analysis model. Secondary data from four sampled classified distressed and unsound banks from the declared six for two years preceding their nationalization and two years after using the stratified sampling technique were analysed using the Alman Z-score discriminant analysis. Results shows that there are marginal improvements in the financial status of the sampled banks between 2010-2013 but they are still in a bankrupt position with Union Bank Plc, Wema Bank Plc, Keystone Bank Ltd and Mainstreet Bank Ltd having a Z- score of -0.56, 0.417, 1.5 and 0.45 respectively at 2013, all below the minimum threshold of 2.675 for classification of a bank as sound and non-bankrupt. This implies that the general broad-based monetary policy measures introduced by the CBN for the financially distressed bank are not much effective in resolving their financial crises in general, making necessary the introduction of bank- specific monetary and financial policies to solve identified bank-specific problems, and the CBN directly supervising these banks with daily monitoring of their operations. Key words: Bankruptcy, discriminant analysis, failed banks, financial crises, Z- score 1.0 Introduction Prediction of corporate failures is rife in foreign literature, but non-existent in Nigeria except that by the Central Bank of Nigeria carried out in the course of performing its statutory functions. To Yildiz and Akkoc (2009), repeated global financial crises have increased corporate bankruptcies necessitating its prediction. Erdogan (2008) noted that moves by a country at the liberalising its financial market (as witnessed during the recent bank consolidation exercise in Nigeria) opens such economies, increasing its fragility; making it vulnerable to further global economic crises. Yildiz and Akkoc (2009) b contended that monitoring and 1