1.0 Introduction
CHAPTER TWO
2.0 Literature review
CHAPTER THREE
Design of the study
CHAPTER FOUR
4.0 Presentation and Analysis of data
CHAPTER FIVE
5.0 Summary of findings, Discussion and Recommendation
References
Appendices.
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Banking Act (1969) defined banking as the business of receiving monies from outside sources as deposits irrespective of the payment of interest, and the granting of loan and acceptance of credits or the purchase and sales of securities for accounts of others or incurring in respect of loans prior to the maturity or the assumption of guarantees and other warrantees for others or the effecting of transfer and clearing. And such other transactions as the minister may, on the recommendation of the central bank, by order published in the federal bank gazette designated as banking business.
The Nigeria banking system is made up of the central, commercial, merchant and Development Banks. There are also the people ‘s bank and community bank recently developed or established by decree of the federal military government. Banking as a profession has been existing for many decade now. But unfortunately there was a no generally accepted statutory definition of a bank until 1969.
Hart (1982) described bank as a person or company carrying on the business of receiving monies and collection draft for customers subjected to the obligation honouring cheque drawn upon them from time to time by customers to the extent of the amount available on their current account.
The banks are closely monitored and regulates by the government through its agencies, the central bank of Nigeria. This is to ensure that they render services to their customer in a manner consistent with safe banking operations and government financial policy.
Owning to the need to effectively and efficiently manage depositors fund the task of managing a bank is entrusted with honours, reputable and hardworking personnel. Amongst various functions of bank management is decision – making, the rational selection from among alternatives of a course or action. It is at the core of planning, a plan cannot be said to exist unless decision has been reached (Koontz 1984).
The management personnel of the bank establish internal control procedure for the effective discharge of the major functions in order to attain their corporate objectives. In doing this, a special attention must be given to communication problem. The structure if the bank organization should have a line and staff structure so that there will be flow of information from the top management and vice versa. Also the lower level will give advise to the top level who might accept it or not. This will make people below the top management level to be aware of the bank policy and their own responsibilities towards the bank, with a free flow of information there will be real basis of effective decision- making.
There is therefore, a need to establish a follow up mechanism so the performance will be monitored to know whether actions are going according to plans and policies. If it is not they corrections can be made before it is too late. It is in the light of the above factors that the management function of controlling becomes very desirable.
In order to ensure that efficient and effective policies and procedures are maintained, the bank management has established the internal control unit or the inspectorate division. The inspection itself is an important organ for internal control system. But our teething problem is that despite the establishment of this division, there seem to be lapses here and there.
Based on the above factors, the researcher was motivated to examine the extent to which inspectorate unit of the bank are contributing to the efficient management of the bank resource with reference to United Bank for Africa PLC, Agbani Road Enugu.
1.2 STATEMENT OF THE PROBLEM
Despite the creation of inspectorate unit in the bank for internal control, it is not clear on the adequacy of human and non-human resources for efficient operation of banking industry.
This is because managers still grant credits (loans) beyond their power limit without collateral security with obvious effect.
Secondly, there are cases of bad debt debts resulting from loan given to customers that has not been recovered. Hence the central bank (1990), prudential guideline has not been obeyed and the effect is reported losses or minimal profit.
Thirdly, there have been cases of computer frauds, defalcation and misrepresentation of fraud and outright removal of physical cash by employees and outsiders. This has created unbalanced book and records with obvious effect of huge loses.
Another problem is the of frequent rationalization and retrenchment in the banking industry.
This creates jobs insecurity and workers may tend to indulge in any act for survival in case of even dualities
1.3 PURPOSE OF THE STUDY
The purpose of this study include the following:
DELIMITATION OF THE STUDY
The scope of this work is limited to united bank for Africa PLC, Agbani Road within the metropolis.
1.5 RESEARCH QUESTION
To guide this study four research questions were formulated as follows:
The result of this work may help create the awareness required for effective and efficient auditing of the bank on the regular basis.
It is also hoped that banks will take advantages of the suggestions from this work to embrace commitment and objectives reporting for accurate record keeping.
It is hoped that reports from this work may help to create confidence to bank customers and facilitate tighter co-operation among banks and banks and customers.
The result of this work may help workers to observe policies, and procedures of banking ethnics to strengthen the job security of staff for efficient growth and development.
Moreso, an application of the suggestions made may earn the bank more customer, co-operation among staff, trust, to achieve the set objective of the banking of the banking industry.
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