ABSTRACT
This project is aimed at
finding out how commercial banks control their customers accounts, which
actually means the way the commercial banks safeguard their customers accounts
and how they carry out their duties as the custodians of their customers
accounts.
Apart from the study
guard at looking of the general activities of the banks with regards to
customers accounts this study more specifically involves finding out the rules
and procedures set down by these banks for the proper control of their
customers accounts, the staff in charge of their customers accounts, the staff
in charge of carrying them out in accordance with the policies and objectives
of the banks, and also with statutory regulation.
The researcher delved
into all these in order to enlighten the customers, and any other individual
reading this project on the extent to which the banks go so as to satisfy their
customers. Also certain aspects of banking which have been misunderstood
by people over the years were clearly sorted out.
The information I
obtained in the cures of my writing this project has helped me to established
the face that commercial banks places a lot of emphasis on the good control of
customers accounts, this is because these accounts make up the livewire of the
existence of these commercial banks.
Finally, the findings
were summarized and thereafter several suggestions and recommendation have been
made to commercial banks in general so as to improve the over all efficiency
and effectiveness of the control of their customers accounts.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
1.2
Statement of the study
1.3
Objective of the study
1.4
Significance of the study
1.5
Limitation of the study
1.6
Definition of the terms
Reference
CHAPTER TWO
2.1
Review of related literature
CHAPTER THREE
Research design and methodology
3.1
Source of data
3.2
Location of data
3.3
Method of data collection (literature work only)
CHAPTER FOUR
4.1
Findings
CHAPTER FIVE
5.1
Conclusion
5.2
Recommendation
Reference
CHAPTER ONE
1.1 BACKGROUND
OF STUDY
The control of
customer’s accounts by commercial banks dates back to a very long time and the
genesis can be said to be of a very humble nature. Long before there were
any banks, people kept money and valuables with the goldsmith for safe custody
because the goldsmith in those days were highly respectable members of the
society who could be trusted because they had strong sets where they kept
valuable. As time went on, the goldsmith observed that the depositors
needed and therefore collected only a little amount of their money at any
particular time.
The goldsmith then
formulated a system thereby he would control and safeguard the money deposited
with him properly in such a way that while he traded with the depositors money,
he had enough cash to meet any depositors needs at any time, that is, this
carefully designed system of control enabled the goldsmith to always ensure
that he was never short of cash when any depositor needed some or all of his
money. This trend continued, but as the years went by, different changes
occurred until banks came into existence.
According to the Oxford
Advanced Learners Dictionary of Current English, a bank is an establishment for
keeping money and valuables safely the money being paid out on the customers
order. “A commercial bank is described as a bank whose business includes
the acceptance of deposits withdrawable by cheque.
In Nigeria, the Central
Bank of Nigeria hereafter referred to as “CBN” is the apex regulatory authority
of the financial system. The banking system of various countries vary
considerably, however, they all tend towards the central banking system.
The systems that are tendable in Nigeria fall into the following parts: CBN,
Commercial Banks, Merchant Banks, Mortgage Banks, Community Banks, Urban
Development Banks and a Peoples Bank. However, these distinction are
merely evident by their names. In terms of operations, this is because,
they have long abandoned their traditional roles and gone into finance
distributive trade, but essentially, their main business is to lend and borrow
money.
Commercial Bank are very
important in the economy because without their operation business activities
will be at a standstill and normal transactions will handicapped. These
commercial banks are also the traditional “department stores” of finance, they
serve a wide variety of savers and those with needs for finds.
Commercial Banks are the
center of focus in this project. In any commercial bank; the basic
activity is the accounts kept by customers, this is to say that a commercial
bank cannot exist without any customer’s accounts so the proper control of these
customers’ account is beneficial to both the customers and the bankers.
Control refers to the methods and mechanisms used to ensure that behaviours and
performance confirm to an organizations objectives plans and standards.
Incidentally, the
control of customer’s accounts has a very high relevance to the growth of a
commercial bank. Some bankers (especially the management of some
commercial banks) are not proper and efficient control of customers accounts to
the growth of the commercial banks, and as a result, they tend to lose
customers, which affect the commercial banks adversely.
In view of all the
aforementioned the purpose of this project is to identify the methods of
control of customers accounts used by commercial banks, and then to make
recommendations and suggestions so as to ameliorate the existing problems and
to improve the overall control of customers accounts by commercial banks.
1.2 STATEMENT
OF THE PROBLEM
The livewire of
commercial banks is the accounts of their customers keep with them. These
customers make deposits into their various accounts as often as it is
possible. Hence, the significance of deposits cannot be overemphasized
this is because it is a crucial factor in determining the strength and
capability of the commercial bank. It is expected that the management of
commercial banks will ensure that they erect a firm, effective and adequate
control system over the customers accounts.
This study seek to
address and explain how commercial banks control their customers accounts, the
procedures used, the formalities that have to be undergone and the bank staff
that are responsible for these jobs at the different stages. To achieve
these in this project, the following will be sought.
The extent to which
management monitor and control those in charge of the operation of the
customers accounts.
Which arm of management
is responsible for it control of customers accounts?
An investigation into
the problems which management undertake to ensure that proper accounting
entries are made for the transaction each customer makes on behalf of his
account.
The processes that
management undertake to ensure proper and effective control of the customer’s
accounts.
Are there any rules and
guideline laid out by the management of commercial banks for the control and
operation of the customer’s accounts?
Could the processes the
control of customers accounts undergo determine the profitability and viability
of the commercial banks?
In summary, the most
essential problem this study seeks to investigate is the extent or degree to
which the commercial banks understand have installed an adequate system of
control over customer’s accounts as a means of satisfying the customer and to
guarantee their trust and constant patronage.
1.3 OBJECTIVES
OF STUDY
The main research
objectives of this project is to study the way commercial bank control the
customer’s accounts, more specifically, the objective of this study are:-
i.
To find out the aim of management of the commercial bank responsible for the
control of customers account.
ii.
To find out ways through which commercial banks generally operates their
customer’s
account.
iii.
To find out how the proper control of customers accounts contribute to the
profitability of the commercial bank.
iv.
To find out whether the staff undergoes proper training qualifying them to
handle the account of customers.
v.
To find out whether customers spend so much time in the banks.
1.4 SIGNIFICANCE
OF STUDY
It is obvious that there
is no way the system of control of customers accounts in any commercial bank
can be water light. But if management set up a good and firm method of
controlling customers account it will be an indispensable aid to efficient
management in that it will ensure the management and staff incharge of the
control of customers accounts that the rules laid down are strictly adhered
to. It also assures them that the objectives of the banks will be achieved
in future.
The significance of this
study is that it will bring to light the importance of having an adequate
system of control of customer’s accounts by commercial banks (especially the
new breed banks). It will also show these banks some important activities,
which they have taken for, granted in the control of customer’s accounts and
this may make them do their work more diligently. The recommendations
made by the project writer, should be useful to the management of some
commercial banks because it will help them fill be loop holes present in their
own methods of control of customer’s accounts. As a result of this, they
will be able to satisfy their existing customers and as well be able to attract
more customers.
These days, many banks
are becoming distressed because of lack of proper control of their customers
accounts and subsequently decreased deposits and increased withdrawals by
customers, this study, shows the proper processes of safeguarding and
controlling the customer’s accounts and other suggestions with regards to this
which these new breed banks can adopt. This study therefore has a lot of
significance to the banking industry. Other individual and holders of
accounts in banks will benefit from his study because they will now be able to
understand the extent to which the banks go to take care of their money and
accounts and they will also understand why spend so much time in the banks.
Also, students will
benefit from this study as they can read up some information they may seek in
commercial banks and customer’s accounts.
Finally, the entire work
will no doubts be useful to other researchers who would wish to conduct a
research on the same topic, and even for research in fields outside the scope
covered, this research will serve as a useful source of background information.
1.5 DEFINITION
OF TERMS
We want to look at some
terms relevant to the banking practice. These are the changes:
i. Drawer:
He is the person who writes and signs the cheques.
Usually he is the
current account holder or has agent.
ii. Drawee:
This is the banker on whom the cheque is drawn and to whom the order to make
payment is given.
iii.
Payee: This is the
beneficiary of the cheque or the person to whom the cheque is payable.
iv.
Commission: This are charges
the bank makes from the customers as regarding services rendered to their
current accounts.
v.
Dormant account:
A dormant account is one which has not been operated by the customer for a
considerable length of time ranging from three months to two
years.
vi. Bank
statement: This is a statement
showing transactions of the customer with the bank for a specific period and
these statements are sent to the account holder periodically.
vii. Endorsee:
The person to whom the title on a cheque is passed by endorsement.
viii. Endorser:
The person who passes on the title on a cheque to another by placing his
signature on the back of the cheque.
ix. Capital:
This is amount used in the starting of a project.
Department | Banking and Finance |
Project ID Code | BFN0035 |
Chapters | 5 Chapters |
No of Pages | 54 pages |
Methodology | Descriptive |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |