The Impact Of Organizational Structure Of Commercial Banks

The Impact Of Organizational Structure Of Commercial Banks

ABSTRACT

This exploration is a study aimed at chancing the main causes of guests of marketable banks to be prompt wherever they’re in their current or saving accounts or withdrawing cash from their savings regard balances or cash cheque in their current account balance.

Consequent upon this, it’ll determine the impact balance of the organizational structure of marketable banks on effective client services.

In other words, this pieces of exploration work goes to determine whether the organizational structure of marketable banks service in Nigeria especially First Bank( Nig)Plc.

This exploration was confined to( 4) four branches each in three countries Lagos fourteen branches in Nigeria.

Both interview and questionnaires, system of data gathering were used. This orders of sample were used in this exercise videlicet guests pastoral staff and the operation staff in determine the promptitude of first bank( Nig) plc to the guests. The three orders of sample contributed in determining how to break problems of detention if any.

Chapter One

Preface

A marketable bank in a country can be described as the energy tank which supplies oil painting that lubricates trade and assiduity in order to get the wheel of profitable conditioning in stir. A marketable banks is no larger uniquely described in terms of being a fiscal conciliator offering demand deposit and marketable lending service. Rather, it’s a fiscal conciliator that provides fiscal service in an evolving assiduity.

The fiscal service is affected by both the association and the structure of the bank. The quality of fiscal services rendered by the bank has great effect to some extent in determining the degree of patronage by the public.

Competition among banks due to the rapid-fire growth in the number of fiscal institutions is so high that a wide range of institution via with one another in affricating guests and offering the guests a verity of fiscal services. With the anteceding the study will endeavor to examine to what extent the organizational structure of the FIRST BNAK PLC, militate against its provision of effective service to its guests.

Background Of The Study

marketable banking in Nigeria dates back to the early social period. The decline in trade system of trade and the rise in fiscal sale of the social government needed an institutions in the form of a marketable bank for safety and transmission of finances. It was for this purpose that African banking pot grounded in south Africa was invited in 1892 to open a branch office in Lagos. The African banking pot was thus the first ultramodern marketable bank to open a branch office in Lagos in that time.

In the time 1894 its operation were taken over by the bank of British West Africa.

In 1899, the bank in Nigeria was established by the royal Niger company. In the time 1912, the bank of British West African absorbed the bank of Nigeria and exercised monopoly over Barclays bank started operation in Nigeria, other colonizer, banks joined in the after time.

The indigenization exercise abolished the actuality of the aboriginal banks in Nigeria. Their actuality was terminated. For some of the ensuing reason

1. The integration of the financial and security request for liquid means and investment of redundant reserve and in effect deceleration of the emergence of original plutocrat and capital requests.

2. The banks by virtue of their interlocking relationship with important international banks are assured of credit Accommodation.

3. The operations of the banks failed to take into consideration the credit requirements of Nigeria.

The demarcation suffered by Nigeria prodded them to essay to set up their own bank. In time 1973 the banking assiduity was indigenized by the civil government acquiring 40 of the equity of foreign banks in Nigeria.

This indigenous marketable banks in Nigeria represent the trouble of Nigeria businessmen to establish their own banks since the aboriginal banks haven’t been particularity interested in giving them backing they enjoy business.

The first trouble in this direction was the establishment of the artificial and marketable bank in 1929 which failed in 1930. The Nigeria mercantile bank was formed in 1931 but it went into voluntary liquidation in 1936.

Successful indigenous banking trouble in Nigeria began with the establishment of the public bank of Nigeria in 1933. The coming successful Indigenous bank the African international bank was established in the time 1957. The visage Nigeria bank was established in the time 1951. presently there are over 60 Indigenous marketable banks in Nigeria with multitudinous branches spread throughout the country.

In fact, the period 1947 to 1952 witnessed the experience of bank failures in Nigeria. It has been shown from available records that these banks also collapsed with the same velocity with which they were established.

By 1954 twenty one( 21) out of the twenty five( 25) indigenous banks failed due to shy capitalization over trading, lack of technically professed labor force and of course poor operation. The failures were an affairs for banks officers, depositor and government.

The forty three marketable banks which responded to our check reported having a aggregate of 397 board members for an normal of about 9 members per an board. No bank has further than 15 members and no bank has further than 15 members on its board.

There appeared to b no relationship between bank size and board size or size. For illustration, the biggest three banks and fifteen and thirteen board members.

also, some state possessed banks had between five and six board members just as state possessed banks had between five and six board members.

The check also revealed that out of the 397 board members, only 154 of them had equity interest in the banks they were directing.

In other word, 234 board members weren’t shareholders in the bank they directed. As would be anticipated, the directors without equity interest were primary representing state and civil government interests in the banks. The directors were government nominees.

The indigenous bank as a group have contributed significantly to the profitable development operate substantially in the indigenous business sector and have extended credit to small and large scale indigenous entrepreneur.

Secondly, they’ve contributed to the development or implicit depositor and banking habitW.A.( 1970) in his development process states that development occurs in all directions.

contemporaneously, growth and development run into backups sectors.

“ thirdly the aggressive rallying of the domestic savings though direct contact with the people and the use of mortem have contributed development. Introduced by Shaw and MacKinnon in( 1973) as the conception of “ fiscal deepening ” and also furnishing employment openings for Nigeria in responsible position in banking Assiduity.

The Structure of the Nigeria Commercial Banks can be bandied As

Branch banking, the marketable banks in Nigeria operate the branch banking structure.

This is a structure arrangement where by veritably many large banks with net work of branch office dominate the frugality. This branch banking takes instructions from their head services( not independent).

Indigenous banks this is a banking structure in which the power of banks invested fully on the aborigines of the country. These banks operate substantially in their state of origin some of them have their head office at their state origin.

They serve substantially indigenous interest.

Mixed banks, these are banks that are concertedly possessed by Nigerians and nonnatives. The maximum power interest of the nonnatives in Mixed banks is 40. The indigenous possessors have a 60 minimum power interest in the mixed banks.( Orjih.J.1996)

Statement Of Problem

Banking is a service assiduity and a similar a bank should have it as a duty to give services to its guests.

In other to remain in good business, the banks services must be acclimatized to the public requirements and rendered efficiently.

All sweats should be made to exclude or reduce detainment. speed and delicacy should be the watch- word.

A bank which produces and renders service efficiently would embraces the patronage of the public and enhance the profitable growth.

Infect the picture of effective service and profitability and so on.

All these scores of a bank, its guests are veritably important in any country.

The rear still is the case in being made by the guests of first women, the asset that there are shy service and frustrating detention in first bank plc they typically complain that “ time is plutocrat ” and they believe that any time wasted or lost in order to with draw or deposit plutocrat is a lot to their business.

Civil retainers frequently complain that a great number of hour is lost when they level their office for hour just moreover to deposit or withdraw plutocrat from the bank.

All these problems will affect our frugality, if not amended and also the gross public product will be negatively affected.

The experimenter, thus want to determine the principle causes of this detention, caused by the staffs of first banks services and its organizational structure.

“ An disquisition into these question is the main base of the study.

Ideal Of The Study

The objects of this study are stated as follow

To find out ways of perfecting the quality and the effectiveness of those fiscal service products, rendered to the guests of first bankplc.

To probe some ways of barring or deriding detention by first bank( nig) plc. To its guests.

To examine if the service rendered and produce by first bank( nig) plc will embrace the patronage of the public and enhance the profitable growth of the country.

To examine the impact of organizational structure of first bank plc from 1999 – 2004 on an effective client services.