BANK INSPECTION IN EXAMINE AS AN EFFECTIVE TOOL IN BANK MANAGEMENT

PROPOSAL

Any  institution without effective inspectorate and  examination department is bound to operate below expectations

            However this research work in a study of bank  inspection in Examine as an effective tool in bank management

The  researcher intends  to explove the background study  of this of project topic by examining the  statement of problem from where she will raise the objectives and research questions.

            The research also examined a galaxy  of existing literature on this topic the research as well used

            Secondary data  to  reinforce its funding.

The funding  and recommendations on this  work were drain  based on the analysis of the secondary data collated.

                                                            TABLE OF  CONTENT

1.1              introduction

Back ground of the study

 Statement of H₁ problem

Purpose & objective of  the study limitation of the study

CHAPTER TWO

Review of related literature

CHAPTER THERR

3.1              Sources of data secondary source only  location of Data method of  data collection (literature work )

CHAPTER FOUR

Finding

CHAPTER FIVE

Recommendation and conclusion

                                                            CHAPTER ONE

1.1              INTRODUCTION

The role of banking sector in a develop economy such as ours can not be over emphasized.  Banking sector forms the life wire of  economic growth of any nation.   According  to recent publication by an international magazine banking sector contributed about 55% of the total economic development of Nigeria.  Also  the development of small and medium scale enterprise cannot be  ruled out in this huge success curtained by the banking indicatory.

1.2       BACKGROUND OF THE STUDY

            The  banking  sector in Enugu metropolis  comprises the central commercial merchant and  development  banks etc.  also inclusive are the community banks which  were  introduced the feel govt  budget of  1990.  The  origin of banking sector dated  back to the early 18^th century even through its definition was given in the later part of the 60^s  and     thus  definition has to do with the business of  receiving movies from outside sources as deposit with the agreed interstate  granting of deposit with  the agreed interstate granting of loans and acceptance of credits or the  purchase of loans and checks or the purchase and sales of securities for accounts  of  others or the uncurling    of the obligations to acquire claims in respect of loans prior to their maturity or the assumption  of guarantor and other warrantees for  others or the effecting  of transfers and  clearing  and such other transaction as the commission may on recommendation of the central bank by order published the federal gazelle  designated as banking business.  The central  bank of  Nigeria  which is government  charged with the responsibility  of closely monitoring and regulation of the activities of other banks to ensure  that they render service to  their customer in a  manners that is consistent with government  stipulated  rules  and financial policies.

            The  ensure that these laid down rules and standard are maintained among  other bank and to guarantee  that  depositors  monies are effectively managed  there is the need for inspection and  examination for effective discharge of these functions the inspectorate division of the central bank has adopted an effective internal control procedures in order to  give adequate coverage thorough inspection and examination this defined objective this is enhanced by selecting adequate man-power needs for  this purpose.  In the recent time the comparization and digitalization of  various function of banks has helped  in a no small measure to curb down the excesses of bank.  Also bank have established internal audit unit  (inspectorate divisions ) charged  with the responsibility of overacting any anomaly  transaction based on through inspection and examination of its account on short term basis.

1.3       STATEMENT OF PROBLEMS

            In Enugu metropolis which is my case study some problems have been identified to have invaded the banking sector and these problem have limited the output of banks thus preventing them from reeling its desired objective..

a.                   The incident of fraud is prevalent in almost all the bank in Enugu metropolis as well as other state.  These metpracties are now detectable through adequate supervision and examination.

b.                  The cases of bad and doubt full debt are now very rampant among many commercial banks.  This problem is not easily nautical by bank of finical but through effective suppression and examination such evil in the banking sector can be detected easily and arrested.  

c.                   There  is very reoccurring problems  of bank managers granting loans  above their discretion’s  and power without adequate collateral’s  and this has  resulted in huge losses  to banks and some are the courage of liquidation.  But adequate inspection and examination has provided in elating solution to this ugly trend.

d.                  The fear of liquidation and frequent rationalization and or retrenchment in banking sector has created fear anxiety and job insecurity workers in the banking sector tend to indulge in many despicable acts to survive these rang days.  But  through inspection and through examination the problem  can be take of some banks within Enugu metropolis had save several embossing situation emanating from franduienl practice.

1.4       OBJECTIVE OF STUDY

            The purpose and objective for which thus study was designed to achieve are here under stated as follows.

a.                   To identify how inspection and examination can be of assistance towards effectuation management of banking sector within Enugu metropolis.

b.                  To determine the magnitude of bad debts resulting from loans issued to customers which have not been recovered and also whether adequate provisions for bad debt are made for such bad debts etc.     

c.                   To inform bank management though inspection and examination ill efficacy of their banking system and operations and recommend possible areas of change.

d.                  To cheek and   examine how bank management grant loans over their power limit or discretion.

Limit as approved by the management.

DEFINITION OF TERMS

1.                  Loan: this is a sum of money tent to the government domestic and foreign lending or being lent.

2.                  Budget estimate of problem future income and expenditure that made by a government similar estimate made by a business company.

3.                  Gazette:  official periodicals with legal notices news of appointment promotions of   officers and officials.

4.                  Cheques: is an order in writings drawn on a bank and payable on demand.

5.                  Examination:  it examining or being examined it was found that the signature was not genuine the prisoner is still under being examined.