INSPECTION AS AN AID TO EFFECTIVE BANK MANAGEMENT
This research studied the contribution of inspectorate department as an effective measure to Union Bank of Nigeria Plc.
To guide the study research questions were formulated, using questionnaires as an instrument. The data collected were analyzed using sample percentages, some of the findings among others are:
1) Inspectorate department plays a significant role in effective utilization of organization find by management.
2) Internal audit (inspectorate) department enhances effective management control in banking organization.
3) The availability of inspectorate department encourages efficiency among employees in banking organization.
4) The existing statutory and other relevant regulation laid adequate consideration on the inspectorate functions.
5) Inspectorate department encloses financial accountability in banking organization.
Based on the findings, the following are recommended among others.
1) Training and retaining of inspectorate department staff for efficiency.
2) Creation of internal audit (inspectorate) department in the bank.
3) To ensure that a professional heads the audit unit qualified inspectorate.
TABLE OF CONTENTS
Table of contents
1.1 Background of the study
1.2 Statement of the problem
1.3 Purpose of the study
1.4 Significance of the study
1.5 The scope of the study
Review of related literature
2.1 Meaning and purpose of inspection
2.2 Organization of the inspectorate department
2.3 Review and reports
Research design and methodology
3.1 Sources of data
3.2 Location of data
3.3 Method of data collection
Recommendations and Conclusion
1.1 BACKGROUND OF THE STUDY
The banking system in Nigeria is made up of the central, commercial, merchant, development and agricultural bank.
These financial houses were established for the central of money, purchase and sale of securities, transfer and clearing and other banking transactions. Hence, banking as a profession has existed for several decades now, but unfortunately there was no generally accepted satisfactory meaning until 1958, when the banking act defined banking as the business of receiving monies, valuables and securities from outside sources. The purchase and sale of securities by bank or granting of loan in respect to maturity or the success of the business, this lead to Hart definition of bank or banker as a person or company carrying on the business of transferring money to assets and receiving monies from customers, subject to the collection of drafts and honouring of cheques drawn upon them from time to time by the customers, to the extent of the amount available on their current accounts.
These banking systems are closely monitored and regulated by the government agents known as Central Bank of Nigeria (CBN), international monetary fund (IMF). This is to ensure that they render services to their customers and also to keep proper account of the business.
Owing the need to accountability and effectiveness of the organization, the management personnel of the bank introduced the internal control (audit department). Among other department in the banking business, the management pays more attention to the internal control to enable them plan control the inflow of cash in the organization for efficiency and good management policy.
Under the organizational efficiency, it is important to establish a follow up mechanism so that the performance of the firm will be monitored to know whether staff structure management plans and policies and finance are working accordingly. Therefore it is in the light of the above factors that the management function of controlling becomes very desirable.
In order ensure that suitable procedures are maintained, the bank management established the internal audit unit otherwise called the inspectorate division. The inspectorate division is an important organ of the internal control system. Hence, our study examines the purpose, techniques and requirements of good and efficiency inspector and its contribution effective bank management resources based on the circumstances of the union bank of Nigeria Plc.