BANK INSPECTION IN EXAMINE AS AN EFFECTIVE TOOL IN BANK MANAGEMENT
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BANK INSPECTION IN EXAMINE AS AN EFFECTIVE TOOL IN BANK MANAGEMENT
1.1 INTRODUCTION TO CHAPTER ONE OF BANK INSPECTION IN EXAMINE AS AN EFFECTIVE TOOL IN BANK MANAGEMENT
The importance of the banking industry in a developing economy like ours cannot be overstated. The banking sector is the lifeline of any country’s economic growth.
According to a recent publication by an international magazine, the banking sector contributed around 55% of Nigeria’s total economic development. In this massive success veiled by the financial indicatory, the development of small and medium-sized enterprises cannot be ruled out.
1.2 BACKGROUND TO THE STUDY
The banking sector in Enugu metropolitan includes the central commercial merchant and development banks, as well as community banks, which were introduced in the 1990 feel government budget. The origins of the banking sector can be traced back to the early 18th century,
even though its definition was given in the late 1960s, and thus definition has to do with the business of receiving movies from outside sources as deposit with the agreed interstate granting of loans and acceptance of credits or the purchase of loans and checks or the purchase and sale of securities for the accounts of others or the uncustodial
The central bank of Nigeria is tasked by the government with closely monitoring and regulating the activities of other banks in order to ensure that they provide services to their customers in accordance with government-specified rules and financial policies.
To ensure that these established rules and standards are followed by other banks and to ensure that depositors’ funds are effectively managed, there is a need for inspection and examination. For the effective discharge of these functions,
the inspectorate division of the central bank has adopted effective internal control procedures in order to provide adequate coverage through inspection and examination.
In recent years, the comparison and digitalization of many bank functions has contributed significantly to the reduction of bank excesses.
In addition, the bank has developed an internal audit unit (inspectorate divisions) responsible with overseeing any anomalous transactions based on short-term inspection and analysis of its accounts.
1.3 STATEMENT OF THE PROBLEM
Some difficulties have been discovered to have invaded the banking industry in Enugu metropolis, which is my case study, and these problems have hampered the output of banks, stopping them from reeling in their desired target.
a. The occurrence of fraud is common in practically all banks in Enugu metropolitan as well as other states. These metpracties can now be detected with proper supervision and examination.
b. Cases of bad and doubtful full debt are becoming fairly common among numerous commercial banks. This problem is not simply navigated by banks of finance,
but such wickedness in the banking industry can be quickly recognised and caught by effective suppression and examination.
c. There are recurring issues of bank managers extending loans beyond their discretion and power without proper collateral, resulting in massive losses for banks and the threat of liquidation for some. However, appropriate inspection and examination have resulted in a solution to this dreadful tendency.
d. The fear of luguidation, as well as regular rationalisation and/or retrenchment in the banking industry, has produced panic, anxiety, and job instability.
Workers in the banking industry are known to engage in a variety of heinous crimes in order to make ends meet these days. However, via inspection and investigation, some banks in Enugu metropolis were able to save various embossing situations resulting from franduienl practise.
1.4 OBJECTIVES OF THE STUDY
The following are the goal and purpose of this investigation.
a. Determine how inspection and examination can aid in the effective management of the banking sector in the Enugu metropolitan area.
b. Determine the extent of bad debts resulting from loans granted to clients that have not been collected, as well as if suitable preparations for bad debt are made for such bad debts, and so on.
c. To inform bank management about inefficiencies in their banking system and operations through inspection and examination, and to offer appropriate changes.
d. To mock and investigate how bank executives grant loans outside their authority or discretion.
Management has approved a limit.
1.5. DEFINITION OF TERMS
1. Loan: a sum of money lent or borrowed by the government, both domestically and internationally.
2. A budget estimate of the problem’s future income and expenditure made by the government is comparable to an estimate provided by a commercial enterprise.
3. Gazette: official publications containing legal notices, news of officer and official appointments, and promotions.
4. Cheques: are written orders drawn on a bank that are due on demand.
5. Examination: While examining or being inspected, it was discovered that the signature was not authentic, and the prisoner is still being examined.
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