IMPACT OF SUPERVISION ON MANAGEMENT EFFICIENCY IN BANKING INDUSTRY. Sources: www.projectng.com
ABSTRACT

The purpose of this study is to determine the impact of supervision on management efficiency in Banking Industry with Reference to U.BA main Branch, station Road Enugu. Banking Act (1969) defined Banking as the business of receiving monies from outside sources as deposits irrespective of the payment of interest and the granting of loans and acceptance of credits or the purchase and sales of securities. To guide this research, the following research questions were formulated as these: To what extent are human and non-human resources adequate for efficient supervision in UBA station Road Enugu, Also to what extent has the bank provided against computer fraud in organization. The materials data for this topic were gotten from both primary and secondary sources. Primary data include, questionnaires and oral interviews was used to collect information from the respondents. Secondary data include journals, magazine and other relevant material. Relating to area of my investigation will be review. Extensive literature review was carried out on direct literature and indirect literature on books, journals and past works. The research instrument used in this study includes oral interview and questionnaire. The questionnaire is structural as to contain both close and open ended question. Simple table, pie-charts and percentages were used in treatment of data while chi-square was used in the research work. Based on the findings, conclusions were drawn and recommendations were also in the last chapter of this work the research therefore roof with other department the bank should employ experienced and qualified academic staff in the supervisory department. To motivation of works by giving recognition and basing rewards on performance loyalty must to be practiced by subordinates, Also staff welfare should be adequately ensured.

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Banking is defined in the 1969 Act as “the business of receiving monies from outside sources as deposits irrespective of the payment of interest and the granting of loans and acceptance of credits, of the purchase and sale of securities for account of others, or the incurring of the obligation to acquire claims in respect of loans prior to their maturity or the assumption of guarantees and other warranties for others, or the effecting of transfer and clearings and such other transactions as the commissioner may, on the recommendation of the central bank, by order publish in the Federal Gazette designate as banking business.

The Nigerian banking system is made up of the central bank, commercial banks, merchant banks and development banks.

However, in the most recent past, the federal military government established the community and people’s banks, with broad based programmes to enhance the welfare of the citizens.

In Nigeria, the banks are closely monitored and regulated by the government through its agency, the Central Bank of Nigeria (CBN). The need for this close marking is to ensure that banks render services to their customers in a manner consistent with safe banking operations and government financial policy.

Due to the direct need to effectively and efficiently manage depositors’ fund, the task of managing is entrusted to reputable and diligent personnel. This is due to the various functions involved in the art of bank management.

The management personnel of banks usually establish internal control procedures for the effective discharge of the major functions in order to attain their corporate objectives. In doing this, special attention is always given to communication problems. The organizational structures of banks usually have a line-end-staff form so that there will be free flow of information vertically.

Similarly, the lower level management can also advise top-level management. This free flow of information will make those below the top management to be fully aware of the bank’s policy and their own individual and group responsibilities toward the bank. It also provides a basis for effective decision making. This is followed by planning which deals with mapping out strategies to implement decision. There is therefore a need to establish a follow-up mechanism so that performances can be monitored to know whether actions are going according to plan and policies. If not, then adjustments can be made. It is in the light of these factors that the management function of controlling becomes very desirable.

A good combination of the basic functions of management planning, organizing, controlling and co-ordinating leads to overall efficiency and effectiveness. In order to enhance proper management and ensure this efficiency, the bank’s management usually establishes internal control units known as the inspectorate division. This division carries out daily and periodic supervision and inspection of all operations of the bank. In the entire banking sector, the inspectorate is a household name, as it exists in all banks though under different names. The setting up of the inspectorate divisions is aimed at stopping any form of financial distress in the Nigerian banking industry as well as other undesirables to both the bankers and customers.

Despite the establishment of this division, there seems to be lapses all over, Nigerian banks are characterized by persistent liquidity, slow loan recovery rate, inefficiency, and so on.

The expectation of an ideal banking system was remained a dream yet far to come true. The situation is further worsened by the state of financial distress presently claiming the lives of many banks in the country. The Nigerian Deposit and Insurance Corporation NDIC (1996) in its annual report declared fifty-one Nigerian banks distressed. However, some banks like the UBA Plc have continued to survive – playing their major roles in the Nigerian Financial Market, despite all difficulties. These roles are particularly important considering the fact that the extent of contribution of every sector accounts for national growth and development to Based on the above factors, the researcher is moved to examine the extent to which the supervision techniques put in place in banks contribute to the efficient and effective management of the banks resources with reference to the United Bank for Africa Plc, Station Read More