Sequel to the growing rare of
economic activities and the consequent need to meet up with the expanding roles
of financial institutions, the equally increased rate of management crisis has
equally generated an alarming level of disturbance to the global financial
world. The issue of increased level of production and the resultant
nationalization of the economy gave room for the level of management crisis
being experienced today in our financial institutions.
The promise under which these
factors are persuasive are examined by the investigation. These inherent crisis
will no doubt continue to contribute to management crisis in our financial
institution if not checked.
The second premise is that of
technological advancement, which came with it, computer, electronic transfer
and so on.
The fraudulent premise, which
is an age-long system of grand, still contributed substantially to the level of
management crisis in financial institutions in Nigeria.
It is however the opinion of
the investigator that the understanding of the dynamics of the crisis is
lacking in the financial institutions system the obvious discovery of this
research is that the authorities and managers of financial institutions
including the stake holders in this sector are involved in the management of
crisis rather than being involved in crisis management.
With the increasing rate of
closure of banks and financial institutions in Nigeria, I continue that there
is no effective tool and machinery for crisis management in financial
In this direction, the
excessive involvement in rivalry, competition instead of comprehensive total
growth of all financial institution in Nigeria make their engage in smatter
ways of out wetting the others.
This is very unhealthy to the
sustainable growth of the institutions.
Moreover a careful study of
that the NDIC (Nigeria Deposit and Insurance Corporation) has done were X-rayed
and the discovery recommended for better financial institutions system.
United Bank of Africa (UBA) as
a fiancial institution has been chosen as a proper representation of financial
institutions administration in the country as this is case study of this
Most outstanding crisis
situations will be identified by this research and those are peculiar to UBA in
addition to all other general situations in the financial institutions will be
identified what has led to the discontinuity and constant instability in the
banking sector in Nigeria is not unconnected with the spate management crisis
and fraudulent crisis in this important sector.
TABLE OF CONTENTS
Background of the study
Statement of the problem
Objective of the study
Statement of hypothesis
Significance of study
Scope of the study
Limitation of the study
Definition of terms
Review of related literature
The consequences of management crisis in Nigeria Financial Institutions.
Remote and manifest causes of management crisis in Nigeria Financial
RESEARCH DESIGN AND METHODOLOGY
Method of data presentation
DATA PRESENTATION AND ANALYSIS
Management crisis characterize the Nigeria banking including, Many financial
development institutions the imperativeness of management crisis in the Nigeria
development financial institutions cannot be therefore be over emphasized.
Suffice this to say that the enormity of growth in this sector and the need to
meet up with the changing roles of financial institutions have made the
Management crisis are bound to
be experienced when one examines the changing roles like banking operations and
processes, commercial banking, corporate banking, public sector, consumer
banking, treasury and financial institutions, credit risks management and so
Due to the heavy loss being
experienced in most financial institutions a study of the management crisis is
apt. Some notable banks have had their license withdrawn, savanna bank plc.
Being the most recent. The 2002 annual financial report of one of the biggest
banks first bank plc narrated the loss of over 10 million naira. These and more
are management crisis dangerously affecting the Nigerian development of
financial institutions through the prevalence of management crisis.
BACKGROUND OF THE STUDY
Financial institutions play pivotal roles in the evaluating of sustainable
development anywhere in the world. The need for the study of the subject matter
becomes more imperative in the banking industry in Nigeria for as the cheese
that lays the golden eggs, economic growth and development of the nation rest
squarely on it.
Banks account dominantly for
financial institution in Nigeria as a result, a review of the forum of
management crisis vehemently exist in banks in Nigeria include the following.
Poor management techniques
Shortage of equipment
Staff in adequacy
Ignorance of modern information
technology management of change in information technology.
These factors had been the
development of financial institutions in Nigeria.
In this era, when the banking
industry is undergoing transformation driven by the changing political climate
deregulation, the economy use of technology Local and Foreign Competition and
increasing customer sophistication. A banking whose ones would characterize
these factors had to be selected ie UBA
PLC. This choice is informed by old nature if incorporation on Feb 23 1961 with the introduction of
mobile banking services in 1963. The
bank introduced UBA GARD with 234 branches in Nigeria and America. It
has trained 3832 numbers of
staff in Local and international courses. This investigation requires such a
bank that has continued to restructure the earning assets with a selective
reduction in aggregate credit volumes and on the liability side have secured a
good share of the public sector deposits. The research requires bank whole
total assets in 2001stood at N188
billion. The bank equally won the Euro
Money best Domestic Bank in Nigeria. The bank which in 2002 was also named
by the new fork based global finance magazine as the best trade finance bank in
Nigeria for the second year running, one of the only two banks that won the
award in Africa the issues of management crisis in Nigeria financial
institutions development are believed by experts to be the people in the
organization. Any business organization boost of the people in that
organization as it’s greatest assets in out fit. It equally follows that on
organization especially a financial institution can only be as good as the
people you employs
Therefore, the institution
should appreciation the individuals that make it up and recognize and
appreciate the value of their participation. It is ironic however, that some
institutions lack this giving rooms to possible fraud and unleashing vendetta
on the institution by her employees who nevertheless are agitated by such state
Its noted by (Ene 1984) “As the
organization grows, its human resources must also be seen to grow with it and
develop to their maximum capacity”. The issue of uncreative remuneration as
been ignored by financial institutions and the collapse of some of them. This
gave rise to the sudden realization by new financial institutions develops who
now place a very high premium in remuneration making the Nigeria financial
institutions highly very attractive recently. The sudden upsurge of emergence
of financial institutions in Nigeria is yet to witness a corresponding failure
rate of such banks. (Financial
Institution) the lack of attractive incentive does not promote the
efficiency of employees in the bank because when people are trained, they
become efficient on the Job thereby increasing their productivity and that of
the financial institution. Such efforts should receive corresponding lucrative
remuneration (Double 1999) “It will
be pertinent to state categorically that crisis in the banks and other
financial institutions have become the order of the day in the past and
research has proved that in spite of the increase in the number of banks and
institutions lucrative remuneration seem to have stemmed the tide institutions
lucrative remuneration seem to have stemmed the tide of such occurrences to a
minimal level to the surprise of skeptics”.
1.2 STATEMENT OF PROBLEM
The evaluation effect of management crisis in Nigeria financial institution development
is highly may negative in that it has also made this sector highly vulnerable
to the problems.
There now exists a high rate of instability in the banking sector as threats of
liquidation face the strong ones ordinary would not think
of such negative development.
Another problem associated with it is discontinuity in the banking
industry ranging from inability to meet with CBN requirements to
the situation where
demanded remuneration by worker’s and
rate demand by customers cannot be met by the financial institutions and
banks, especially the community banks etc.
Bank distress account too for one of negative effects of financial
institutions development hinged on management crisis because
community banking system, some of these banks still weather
the storm and are afloat. Savanna bank plc case terrifies the incidence
of distress which is a purely management problem.
Complete dissolution of some banks. This Eneh (1984) identified too as
the evaluation effects on management crisis in that the
could be due to financial management crisis or an off
shoot of political crisis on government policy objectives like indigenization.
1.3 OBJECTIVE OF THE STUDY
The research objective is the further evaluation of the evaluation effects of
management crisis in Nigeria financial institution development. Consequently
the under listed objection are pursued by this research as follows.
To identify and further analyze those resultant effects which
has on financial institutions development
especially in the United Bank for Africa Plc (UBA).
10 workers attitude to financial institutions development and the
consequent administration with a view to explaining the
extent of their involvement.
To identify and evaluate those variables to lead to management
crisis in the development of financial institution in
Nigeria especially UBA Plc.
To examine the prospects of Nigeria development financial institutions
inductively through the investigative and to adduce
the effective crisis management in
institution economic development in Nigeria.
1.4 RESEARCH QUESTION.
For the purpose of the research, the following research questions are adopted.
How does management crisis effects, development of institution in
What factors constitute management crisis in development of
financial institution in
What normally forms the financial institutions works perception of management
How would an adequate answer be provided to the issues of key
variables in development of financial institutions in Nigeria such as
providing insight into the kind of measures ensured
effective and efficient crisis management?
1.5 STATEMENT OF HYPHOTHESIS
These testable hypothesis are geared to wards in depth examination of the
These are null and alternative hypothesis in this investigation represented as
(Ho) and (H1) respectively.
They are as follows:-
Ho : Instability
is not one of the management crisis that effects the Nigeria financial
H1: Instability is
one of the management crisis that effects the
Nigeria financial institution.
Ho: Fraud does not
negate development in Nigeria financial
Ho: Fraud negates the
development of Nigeria financial
management crisis does not lead to bank distress
and consequent dissolution of banks.
management crisis bring discontinuity in Nigeria
1.6 SIGNIFICANCE OF STUDY.
The research is imperative in the following areas and will immensely benefit
the Nigeria financial institutions in general and the banking industry in
particular. It proffered solution and suggested ways and measure of better
crisis management and control in a developing economy such as ones.
Management crisis is a regular
feature of every organization and therefore non-financial organizations will
equally ripe the fruits of this investigation since this study will provide
ways and tools of crisis management in organizations.
Academically, student and those
engaged in financial studied in addition to evolved in financial management and
project analyst in financial matters will find this research on management
However, it could also be
clearer that this study needs more enterprising investigation so as to
illuminate this area i.e management crisis as a dangerous virus besetting the
Nigeria financial institutions especially banks which has become turbulent
owing to the infiltration of all manner of management crisis into the system.
These significances will no doubt instigate the intense of intending
researchers in the financial institution area.
1.7 SCOPE OF THE STUDY
The investigation however reflected on the numbers fact of management crisis
that has characterized the financial institutions development in Nigeria more
so when the resultant effect has been the withdrawal of licenses by NDIC and
the sudden denial of peoples (Culture) deposit in such banks thereby casting
expressions on the nation’s financial institution.
United Bank of Africa Plc (UBA)
as a case study whose management services sector crisis of medical services
sector crisis of Amen resources and Training, industrial relation, medical
services, classified Asset management, legal services and registration
department. The administrative measure strategies effectual management crisis
and identify possible management crisis that could affect the institution,
their evaluation effect on development of the financial institutions and their
like hood of occurrence. The research however attempted to develop management
crisis tools that would benefit and minimize the probability of such incidence
in Nigeria financial institution development.
Definition of terms
Terminological confusions are
avoided through the conceptualization of term. Certain key words are met along
the line, which may be given different interpretation for the purpose of this
study therefore, the following working concepts are operational zed thus.
Ugorji (1989) described crisis,
as “an unusual situation of outcome of which is uncertain or capable of
generating conflict. The loss of financial resources accompanying such
development in the financial institution.
Double (1996) noted and
described management as the creation of an enabling environment to achieve the
goals of an organization” its per articulation, formation and implementation
goes a long way to ameliorating the problems of financial institutions
especially the banks.
Bank fraud can be defined as a
conscious or deliberate effort armed at obtaining unlawful financial advantage
at the detriment of another person who is the rightful owner of the fund
“described Orjih (1996) this could involve a collection of positors” money or
the banks assets and finances. Leaden advantages are sometimes taken of the
changing political climate, deregulation of the economy and the use of
technology to incident such frauds.
In his description, Orjih
(1994) described bank distress as when it is unable to meet the bank
examination rate system” management crisis is usually the problem of distress
Campton (1979) described it as
“a person or company on the business of receiving money, and collecting drafts
for customers subject to their obligation’s though the banking industry is
undergoing transformational innovations characterized by increased duties and
responsibilities in addition to the traditional roles banks had played in the
Ugorji (1989) described crisis
management as any measure that plans in advance that removes the risk and
uncertainty from a given situation and thereby allows one to be more in control
of ones own destiny is needed a form of crisis management”
The emergency of a new
quantitative state of the object of its composition and structure.
TERMS AND CONDITIONS APPLY
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