DOWNLOAD THE COMPLETE PROJECT

1312 Users found this project useful

CHAPTER ONE
INTRODUCTION
1.1  BACKGROUND OF THE STUDY
Banking is defined in the 1969 Act as “the business of receiving monies from outside sources as deposits irrespective of the payment of interest and the granting of loans and acceptance of credits, of the purchase and sale of securities for account of others, or the incurring of the obligation to acquire claims in respect of loans prior to their maturity or the assumption of guarantees and other warranties for others, or the effecting of transfer and clearings and such other transactions as the commissioner may, on the recommendation of the central bank, by order publish in the Federal Gazette designate as banking business. The Nigerian banking system is made up of the central bank, commercial banks, merchant banks and development banks. However, in the most recent past, the federal military government established the community and people’s banks, with broad based programmes to enhance the welfare of the citizens. In Nigeria, the banks are closely monitored and regulated by the government through its agency, the Central Bank of Nigeria (CBN). The need for this close marking is to ensure that banks render services to their customers in a manner consistent with safe banking operations and government financial policy. Due to the direct need to effectively and efficiently manage depositors’ fund, the task of managing is entrusted to reputable and diligent personnel. This is due to the various functions involved in the art of bank management. The management personnel of banks usually establish internal control procedures for the effective discharge of the major functions in order to attain their corporate objectives.
In doing this, special attention is always given to communication problems. The organizational structures of banks usually have a lineend-sta form so that there will be free flow of information vertically. Similarly, the lower level management can also advise top-level management. This free flow of information will make those below the top management to be fully aware of the bank’s policy and their own individual and group responsibilities toward the bank. It also provides a basis for effective decision making. This is followed by planning which deals with mapping out strategies to implement decision. There is therefore a need to establish a follow-up mechanism so that performances can be monitored to know whether actions are going according to plan and policies. If not, then adjustments can be made. It is in the light of these factors that the management function of controlling becomes very desirable. A good combination of the basic functions of management planning, organizing, controlling and co-ordinating leads to overall efficiency and effectiveness. In order to enhance proper management and ensure this efficiency, the bank’s management usually establishes internal control units known as the inspectorate division. This division carries out daily and periodic supervision and inspection of all operations of the bank. In the entire banking sector, the inspectorate is a household name, as it exists in all banks though under different names. The setting up of the inspectorate divisions is aimed at stopping any form of financial distress in the Nigerian banking industry as well as other undesirables to both the bankers and customers.
Despite the establishment of this division, there seems to be lapses all over, Nigerian banks are characterized by persistent liquidity, slow loan recovery rate, inefficiency, and so on. The expectation of an ideal banking system was remained a dream yet far to come true. The situation is further worsened by the state of financial distress presently claiming the lives of many banks in the country. The Nigerian Deposit and Insurance Corporation NDIC (1996) in its annual report declared fiy-one Nigerian banks distressed. However, some banks like the UBA Plc have continued to survive – playing their major roles in the Nigerian Financial Market, despite all difficulties. These roles are particularly important considering the fact that the extent of contribution of every sector accounts for national growth and development to Based on the above factors, the researcher is moved to examine the extent to which the supervision techniques put in place in banks contribute to the efficient and effective management of the banks resources with reference to the United Bank for Africa Plc, Station Road, Enugu.
1.2  STATEMENT OF THE PROBLEM
Banking is in the service industry. The quality of services rendered by our banks have not been so encouraging. The government functionaries, businessmen, the media and the general public are all very critical of banking services. The complaints usually made and include:
i. Inefficiency
ii. Poor treasury management
iii. Cases of bad debts
iv. Frequent rationalization and retrenchment of sta. For instance, in December 1998, about three thousand sta of UBA Plc nationwide was laid o. Even the nation’s apex bank, the Central Bank of Nigeria (CBN) was not le out in this ugly trend. This created job insecurity and workers may tend to indulge in fraudulent acts in order to survive. Are the various criticisms about the banking industry from people of all works of life a mere run down of the industry? These and more are what the researcher intends to find out.
1.3  OBJECTIVES OF THE STUDY
From all that had been written earlier, it is the aim of this study to:-
a. Examine the supervision techniques put in place in banks.
b. Ascertain the extent of bad debts in banks.
c. Identify the provisions made for the prevention of bad debts and how such provisions are applied.
d. Find out the extend of computer fraud and associated evils in banks, with a view to solving them.
e. Determine the degree of job security provisions and workers satisfaction in banks as it relates to proper accountability by the banking staff.
1.4   RESEARCH HYPOTHESIS
H0:- Control measures against occurrence of bad debts in banks are not achieved.
Hi:- Control measures against occurrence of bad debts in bank are achieved.
H0:- Banks’ provisions against computer fraud are not being implemental
Hi:- Banks’ provisions against computer fraud are being implemented.
1.5  RESEARCH QUESTIONS/HYPOTHESIS
To guide this study, four research questions are formulated.
i. Are the human and non- human resources in U.B.A PLC, main branch, station Road, Enugu, adequate for effective and efficient supervision in the bank?
ii. How much are the control measures against the occurrence of bad debt in the bank achieved?
iii. How fully has the bank’s provisions against computer fraud been implemented and what is the rate of occurrence?
iv. What is the level of job security and satisfaction with regards to the employees of U.B.A, PLC, main Branch, Enugu?

1.6  SIGNIFICANCE OF THE STUDY
The result of this work will help to create the much needed awareness of the procedures and need for efficient and effective supervision of banks on a regular basis. It is further expected that banks will take advantage of the suggestions and recommendations of this study to embrace commitment to duty and objective reporting for accurate record keeping. Furthermore, it is hoped that the outcome of this study will help to restore confidence amongst banks’ customers and rebuild their cordial relationships. Also, this work might help employees in the banking sector to strictly observe the policies and procedures of the banking ethics. This will strengthen the job security of sta for eicient growth and national development structure. Generally, the suggestions of this study, if applied will attract more clients for banks, generate maximum co-operation among sta thereby creating a conducive atmospheric condition for the achievement of the objectives of the banking industry.
1.7  SCOPE OF THE STUDY
The researcher will like to concentrate on the United Bank for Africa Plc, main brand, station road, Enugu, with focus on the impact of supervision on the effective and efficient management of banks.
1.8  LIMITATION OF THE STUDY
The researcher has not got enough resources (money, time, materials) to carry out this study in all banks, therefore it is restricted U.B.A PLC, man branch, Enugu. The findings may not reflect the entire situation in all the banks as a whole, but averagely, what happens in U.B.A PLC, can be applicable to other banks.
1.9  DEFINITION OF TERMS
Uncommon terms used in this study are briefly explained thus:-
BAD DEBTS:- These are un recovered debts resulting from loans given to customers.
DEPOSITORS’ FUND:- These are amounts kept in banks by customers.
FINANCIAL MARKETS:- These are avenues for the purchase and sale of funds. They are made up of institutions, which deal in buying and selling of securities.
FINANCIAL POLICY:- This is a plan of action by a government on how to regulate monetary translations in an economy.

ILLIQUIDITY:- The inability of banks to pay cash immediately when called upon to do so.
INSPECTORATE:- These are internal control units set up by banks to carryout supervision on all operations of the banks, in various departments.
TREASURY MANAGEMENT:- The control of money, especially one that has to do with the public.
 

  DOWNLOAD THE COMPLETE PROJECT