An Analysis Of The Role Of Inspection And Examination In Overall Bank Management

An Analysis Of The Role Of Inspection And Examination In Overall Bank Management

ABSTRACT

This work studied the part of examination and Examination in overall bank operation( a study of United Bank for Africa Plc, Enugu). Bank directors subventions credit over their discretional limit as approved by operation without acceptable security given which is one of the major problem faced by banks in this study. To guide therefore study, six questionnaires were formulated and data were collected and anatomized using ki- forecourt. Some of these findings are as follows

1) The responsibility of the internal inspection isn’t confined to fiscal matters alone.

2) examination and examination of banks holds the key to effectiveness and profitability of banks

3) The inspectorate Department always sends their report to the Board of Directors.

4) There are laid down rules and procedures by the bank operation of United Bank for Africa.

Some of the recommendations are also follows

1) Inspectorate department should be created in the banks for discovery of fraud.

2) The head of inspectorate department should be placed in the same rank with the directors whom they’re to report on.

CHAPTER ONE

preface

BACKGROUND OF THE STUDY

Banking is an age-long practice with the issue of trade by trade. It was still, delicate to move people to borrow the stress that banking should be applied to cash operation. The idea of saving for the raining days, be it in cash or kind is of consummate important.

The conception of structure yam barns in the olden days was a form of currency, wasn’t just to secure them but also to save them.

Effective operation of coffers, be it in kind or cash been the bare of the banking system. In Nigeria, the central Bank of Nigeria( CBN) has carried out strict profitable programs aimed at icing effective operation in the banking sector which comprises marketable trafficker and micro finance banks.

The Banking Act of( 1969) defined banking as the business of entering plutocrat form outside sources as deposits irrespective of the payment of interest and permission of loan and acceptance of credit or the purchase of bill and cheques or the purchase and trade of securities for account of others or the incurring of the obligation to acquire claims in respect of loans previous to their maturity or the supposition of guarantees and other guaranties for others, or the effecting of transfer and clearing and similar other sale as the manager may on recommendation of the Central Bank of Nigeria by order published in the Federal Gazette designated as banking business.

Depositors finances are of consummate important to banks, thus the need to effective and effective operation of depositors fund calls for honest and hardworking labor force. It also relies on the operation labor force of a bank to establish the major functions in order to achieve the commercial ideal. The issue of communication constitutes a major problem in effective operation of communication gap that exists among the operation to the lower bones . As a result of this communication gap, the different bank programs don’t feel to be well articulated.

STATEMENT OF PROBLEM

The directorial function of controlling is a dimension and correction of the performance of conditioning of inferiors in order to make sure that all objects and plans cooked to attain them are being fulfilled.

Millichamp( 1986) described internal auditing as an independent appraisal exertion with an association for the review of the operation as a service to directorial control which functions by measuring and assessing the effectiveness of other controls.

Internal auditing can also be defined as a review of operations and records, occasionally nonstop undertaking with a business by a especially assigned staff. The end ideal is to insure operation that the internal checks and counting system are effective in design and operation. Because of peculiar nature of banks, its business includes dealing principally on fiscal means and arrears, there’s one strong magnet towards fraudulent manipulation and practices by both the workers and those outside the bank employment, hence there’s a great need for every bank operation further than any association to strive towards effectiveness in the performance of its functions also.

1) The question becomes “ How can examination function help operation in achieving effectiveness ”? it’s easier and more common to assess the consequences as lack of acceptable internal control in the banking assiduity has been witnessing an increase in reported bank fraud which runs into hundreds of millions of naira every time. These do in the form of computer frauds, defalcation and misrepresentation of documents and outright junking of physical cash by hand and outlanders.

2) There’s are-occurring problem of bank directors granting credit( loan) over their discretional limits as approved by operation without acceptable security given.

3) The cases of adding bad debts performing from loans issued to guests that has not been recovered, this have been giving problems to operation and as a result, part of their income is reserved as a provision against those debts in view of conditions of the prudential guidelines for certified banks.

4) Also there’s a lack of frugality and effectiveness in operations. sale records of some banks made by workers aren’t in agreement with established procedures performing to unstable books and records. This review by bank external adjudicators and nonsupervisory bodies like. Central Bank of Nigeria, Nigeria Deposit Insurance Corporation( NDIC) and the government for occasionally now how that conditioning of banks in the frugality has been a subject of adverse review by the government and its agencies. These problems should be of serious concern to bank directors and possessors when viewed in terms of their consequences on the banks and the society at large. Hence any trouble made towards correcting these problems should be regarded as one of the right directions.

PURPOSE OF THE STUDY

This study is aimed at the following

1) To identify and explain how examination( internal auditing) can be of backing towards achieving effective Bank Management.

2) To identify colorful ways of examination and examination ways.

3) To examine how these examination ways have been applied.

4) To ascertain whether there are challenges encountered during examination and Examination in banks.

5) To offer results to the problems linked.

exploration QUESTIONS

This study is the analysis of the part of examination and examination in overall bank operation. It’s intended to relate applicable theoretical conception to the United Bank for Africa Plc Enugu in a way which would be helpful to the operation.

This design is thus base on the following academic statement exploration questions

1) To what extent is shy examination of conditioning a major contributory factor to ineffective bank operation?

2) What are the colorful ways of examination and examination ways?

3) Are there challenges encountered during examination and examination of banks?

exploration suppositions

The following suppositions were formulated

1) Ho Inspection of conditioning is a major contributory factor to effective bank operation

Hi examination of conditioning doesn’t contribute factor to effective bank operation

2) Ho Application of colorful examination ways helps in discovery of fraud in banking assiduity.

Hi colorful examination ways doesn’t help in discovery of fraud in banking assiduity.

3) Ho Lack of information is one the challenges encountered during examination and examination of bank.

Hi Lack of information isn’t a challenge hassle during examination and examination of a bank.

SIGNIFICANCE OF THE STUDY

It’s hoped that the result of this enquiry would be of immense important to bank inspectors, external adjudicators, observers, counting profession, bank operation and other drivers in the banking system and the state.

In enforcing the recommendations as regards the demand for effective examination, it’s hoped that they would increase neutrality in reporting and adding inspectors commitment and job security. In enforcing the recommendations, it’s further anticipated that the general apathy generally associated with examination reports would be removed.

There’s no mistrustfulness that reports are produced without bias, they would go a long way to encourage everybody concerned to adherence rigorously to the programs standard and procedure as well as promoting to strive towards the collaborative achievement of the banks objective.

compass, LIMITATIONS AND DELIMITATIONS SCOPE OF THE STUDY

This study is designed to cover the operation function of examination controlling with particular reference to its backing to effective bank operation.

LIMITATIONS

Due to the fact that it’s a delicate task to cover all the banks in Nigeria, the experimenter concentrated on the United Bank for AfricaPlc.

likewise, as the experimenter couldn’t carry out a study of all the United Bank for Africa within the country, this work is limited within the country, this work is limited to United Bank for Africa Plc positioned No 10 station road Enugu, Enugu State of Nigeria.

DELIMITATIONS

In this work, the experimenter is faced with some constraints that needed the choice of one bank in a particular position.

1) The time distributed to this work is short. As a result the experimenter would not have time to cover numerous banks positioned in different locales.

2) A study of different banks in different locales requires enough fund. thus due to some fiscal constraints, the experimenter limits himself to just the United Bank for Africa Plc positioned at 10 station Road, Enugu.

description OF TERMS

1) Bank Management It’s a banking process of getting effects done through other people in utmost effective and effective manner. It’s an exertion that converts disorganized effects and physical coffers into useful and effective result.

2) Effectiveness It’s a system of producing or able of producing an willed result.

3) Bank This is a fiscal institution that accept deposit, pay cheque, reduction bill and render other fiscal services to their guests.

4) Analysis It’s an disquisition of the element corridor of a whole and their relation in making up the total. Analysis also means detailed examination of the element or structure of commodity, generally as a base for discussion or interpretation. It’s also the process of separating commodity into its constituent rudiments.

examination examination is an systematized examination or formal evaluation exercise. examination is the appraisal involving examination, dimension, testing, ganging, and comparison of accoutrements oritems.ABSTRACT

This work studied the part of examination and Examination in overall bank operation( a study of United Bank for Africa Plc, Enugu). Bank directors subventions credit over their discretional limit as approved by operation without acceptable security given which is one of the major problem faced by banks in this study. To guide therefore study, six questionnaires were formulated and data were collected and anatomized using ki- forecourt. Some of these findings are as follows

1) The responsibility of the internal inspection isn’t confined to fiscal matters alone.

2) examination and examination of banks holds the key to effectiveness and profitability of banks

3) The inspectorate Department always sends their report to the Board of Directors.

4) There are laid down rules and procedures by the bank operation of United Bank for Africa.

Some of the recommendations are also follows

1) Inspectorate department should be created in the banks for discovery of fraud.

2) The head of inspectorate department should be placed in the same rank with the directors whom they’re to report on.

Chapter One

Preface

Background Of The Study

Banking is an age-long practice with the issue of trade by trade. It was still, delicate to move people to borrow the stress that banking should be applied to cash operation. The idea of saving for the raining days, be it in cash or kind is of consummate important.

The conception of structure yam barns in the olden days was a form of currency, wasn’t just to secure them but also to save them.

Effective Operation of coffers, be it in kind or cash been the bare of the banking system. In Nigeria, the central Bank of Nigeria( CBN) has carried out strict profitable programs aimed at icing effective operation in the banking sector which comprises marketable trafficker and micro finance banks.

The Banking Act of( 1969) defined banking as the business of entering plutocrat form outside sources as deposits irrespective of the payment of interest and permission of loan and acceptance of credit or the purchase of bill and cheques or the purchase and trade of securities for account of others or the incurring of the obligation to acquire claims in respect of loans previous to their maturity or the supposition of guarantees and other guaranties for others, or the effecting of transfer and clearing and similar other sale as the manager may on recommendation of the Central Bank of Nigeria by order published in the Federal Gazette designated as banking business.

Depositors finances are of consummate important to banks, thus the need to effective and effective operation of depositors fund calls for honest and hardworking labor force. It also relies on the operation labor force of a bank to establish the major functions in order to achieve the commercial ideal. The issue of communication constitutes a major problem in effective operation of communication gap that exists among the operation to the lower bones . As a result of this communication gap, the different bank programs don’t feel to be well articulated.

Statement Of Problem

The directorial function of controlling is a dimension and correction of the performance of conditioning of inferiors in order to make sure that all objects and plans cooked to attain them are being fulfilled.

Millichamp( 1986) described internal auditing as an independent appraisal exertion with an association for the review of the operation as a service to directorial control which functions by measuring and assessing the effectiveness of other controls.

Internal auditing can also be defined as a review of operations and records, occasionally nonstop undertaking with a business by a especially assigned staff. The end ideal is to insure operation that the internal checks and counting system are effective in design and operation. Because of peculiar nature of banks, its business includes dealing principally on fiscal means and arrears, there’s one strong magnet towards fraudulent manipulation and practices by both the workers and those outside the bank employment, hence there’s a great need for every bank operation further than any association to strive towards effectiveness in the performance of its functions also.

1) The question becomes “ How can examination function help operation in achieving effectiveness ”? it’s easier and more common to assess the consequences as lack of acceptable internal control in the banking assiduity has been witnessing an increase in reported bank fraud which runs into hundreds of millions of naira every time. These do in the form of computer frauds, defalcation and misrepresentation of documents and outright junking of physical cash by hand and outlanders.

2) There’s are-occurring problem of bank directors granting credit( loan) over their discretional limits as approved by operation without acceptable security given.

3) The cases of adding bad debts performing from loans issued to guests that has not been recovered, this have been giving problems to operation and as a result, part of their income is reserved as a provision against those debts in view of conditions of the prudential guidelines for certified banks.

4) Also there’s a lack of frugality and effectiveness in operations. sale records of some banks made by workers aren’t in agreement with established procedures performing to unstable books and records. This review by bank external adjudicators and nonsupervisory bodies like. Central Bank of Nigeria, Nigeria Deposit Insurance Corporation( NDIC) and the government for occasionally now how that conditioning of banks in the frugality has been a subject of adverse review by the government and its agencies. These problems should be of serious concern to bank directors and possessors when viewed in terms of their consequences on the banks and the society at large. Hence any trouble made towards correcting these problems should be regarded as one of the right directions.

Purpose Of The Study

This study is aimed at the following

1) To identify and explain how examination( internal auditing) can be of backing towards achieving effective Bank Management.

2) To identify colorful ways of examination and examination ways.

3) To examine how these examination ways have been applied.

4) To ascertain whether there are challenges encountered during examination and Examination in banks.

5) To offer results to the problems linked.

Exploration Questions

This study is the analysis of the part of examination and examination in overall bank operation. It’s intended to relate applicable theoretical conception to the United Bank for Africa Plc Enugu in a way which would be helpful to the operation.

This design is thus base on the following academic statement exploration questions

1) To what extent is shy examination of conditioning a major contributory factor to ineffective bank operation?

2) What are the colorful ways of examination and examination ways?

3) Are there challenges encountered during examination and examination of banks?

Exploration Suppositions

The following suppositions were formulated

1) Ho Inspection of conditioning is a major contributory factor to effective bank operation

Hi examination of conditioning doesn’t contribute factor to effective bank operation

2) Ho Application of colorful examination ways helps in discovery of fraud in banking assiduity.

Hi colorful examination ways doesn’t help in discovery of fraud in banking assiduity.

3) Ho Lack of information is one the challenges encountered during examination and examination of bank.

Hi Lack of information isn’t a challenge hassle during examination and examination of a bank.

Significance Of The Study

It’s hoped that the result of this enquiry would be of immense important to bank inspectors, external adjudicators, observers, counting profession, bank operation and other drivers in the banking system and the state.

In enforcing the recommendations as regards the demand for effective examination, it’s hoped that they would increase neutrality in reporting and adding inspectors commitment and job security. In enforcing the recommendations, it’s further anticipated that the general apathy generally associated with examination reports would be removed.

There’s no mistrustfulness that reports are produced without bias, they would go a long way to encourage everybody concerned to adherence rigorously to the programs standard and procedure as well as promoting to strive towards the collaborative achievement of the banks objective.

Compass, Limitations And Delimitations Scope Of The Study

This study is designed to cover the operation function of examination controlling with particular reference to its backing to effective bank operation.

Limitations

Due to the fact that it’s a delicate task to cover all the banks in Nigeria, the experimenter concentrated on the United Bank for AfricaPlc.

likewise, as the experimenter couldn’t carry out a study of all the United Bank for Africa within the country, this work is limited within the country, this work is limited to United Bank for Africa Plc positioned No 10 station road Enugu, Enugu State of Nigeria.

Delimitations

In this work, the experimenter is faced with some constraints that needed the choice of one bank in a particular position.

1) The time distributed to this work is short. As a result the experimenter would not have time to cover numerous banks positioned in different locales.

2) A study of different banks in different locales requires enough fund. thus due to some fiscal constraints, the experimenter limits himself to just the United Bank for Africa Plc positioned at 10 station Road, Enugu.

Description Of Terms

1) Bank Management It’s a banking process of getting effects done through other people in utmost effective and effective manner. It’s an exertion that converts disorganized effects and physical coffers into useful and effective result.

2) Effectiveness It’s a system of producing or able of producing an willed result.

3) Bank This is a fiscal institution that accept deposit, pay cheque, reduction bill and render other fiscal services to their guests.

4) Analysis It’s an disquisition of the element corridor of a whole and their relation in making up the total. Analysis also means detailed examination of the element or structure of commodity, generally as a base for discussion or interpretation. It’s also the process of separating commodity into its constituent rudiments.

examination examination is an systematized examination or formal evaluation exercise. examination is the appraisal involving examination, dimension, testing, ganging, and comparison of accoutrements or particulars.