Thesis Abstract

Bank inspection is a crucial aspect of bank management that plays a significant role in ensuring the stability and efficiency of financial institutions. This research project aims to examine the effectiveness of bank inspections as a tool in bank management. The study will focus on exploring how bank inspections are conducted, the key areas that are inspected, and the impact of these inspections on the overall management of the bank. The research will involve a comprehensive review of existing literature on bank inspections and their role in bank management. This will include an analysis of the regulatory framework governing bank inspections, the methodologies used in conducting inspections, and the key objectives of these inspections. By examining previous studies and reports on bank inspections, the research will provide insights into the best practices and challenges associated with this process. In addition to the literature review, the research project will also include a series of case studies to investigate the practical application of bank inspections in different financial institutions. By analyzing real-world examples, the study aims to identify the strengths and weaknesses of current inspection practices and their impact on bank management. This empirical approach will allow for a more in-depth understanding of how bank inspections are carried out in practice and their effectiveness in improving the performance of banks. Furthermore, the research will explore the role of technology in enhancing the efficiency and effectiveness of bank inspections. With the advancement of digital tools and data analytics, there is a growing opportunity to streamline the inspection process and make it more data-driven. The study will investigate how banks are leveraging technology to conduct more thorough and timely inspections, and the potential benefits and challenges associated with this approach. Overall, this research project seeks to contribute to the existing body of knowledge on bank inspections and their role in bank management. By analyzing the current practices, challenges, and opportunities in this field, the study aims to provide valuable insights for policymakers, regulators, and bank managers on how to improve the effectiveness of bank inspections as a tool for ensuring the stability and soundness of financial institutions.

Thesis Overview

Any institution without effective inspectorate and examination department is bound to operate below expectations

However this research work in a study of bank inspection in Examine as an effective tool in bank management

The researcher intends to explove the background study of this of project topic by examining the statement of problem from where she will raise the objectives and research questions.

The research also examined a galaxy of existing literature on this topic the research as well used

Secondary data to reinforce its funding.

The funding and recommendations on this work were drain based on the analysis of the secondary data collated

CHAPTER ONE

1.1 INTRODUCTION

The role of banking sector in a develop economy such as ours can not be over emphasized. Banking sector forms the life wire of economic growth of any nation. According to recent publication by an international magazine banking sector contributed about 55% of the total economic development of Nigeria. Also the development of small and medium scale enterprise cannot be ruled out in this huge success curtained by the banking indicatory.

1.2 BACKGROUND OF THE STUDY

The banking sector in Enugu metropolis comprises the central commercial merchant and development banks etc. also inclusive are the community banks which were introduced the feel govt budget of 1990. The origin of banking sector dated back to the early 18th century even through its definition was given in the later part of the 60s and thus definition has to do with the business of receiving movies from outside sources as deposit with the agreed interstate granting of deposit with the agreed interstate granting of loans and acceptance of credits or the purchase of loans and checks or the purchase and sales of securities for accounts of others or the uncurling of the obligations to acquire claims in respect of loans prior to their maturity or the assumption of guarantor and other warrantees for others or the effecting of transfers and clearing and such other transaction as the commission may on recommendation of the central bank by order published the federal gazelle designated as banking business. The central bank of Nigeria which is government charged with the responsibility of closely monitoring and regulation of the activities of other banks to ensure that they render service to their customer in a manners that is consistent with government stipulated rules and financial policies.

The ensure that these laid down rules and standard are maintained among other bank and to guarantee that depositors monies are effectively managed there is the need for inspection and examination for effective discharge of these functions the inspectorate division of the central bank has adopted an effective internal control procedures in order to give adequate coverage thorough inspection and examination this defined objective this is enhanced by selecting adequate man-power needs for this purpose. In the recent time the comparization and digitalization of various function of banks has helped in a no small measure to curb down the excesses of bank. Also bank have established internal audit unit (inspectorate divisions ) charged with the responsibility of overacting any anomaly transaction based on through inspection and examination of its account on short term basis.

1.3 STATEMENT OF PROBLEMS

In Enugu metropolis which is my case study some problems have been identified to have invaded the banking sector and these problem have limited the out put of banks thus preventing them from reeling its desired objective..

a. The incident of fraud is prevalent in almost all the bank in Enugu metropolis as well as other state. These metpracties are now detectable through adequate supervision and examination.

b. The cases of bad and doubt full debt is now very rampant among many commercial bank. This problem is not easily nautical by bank of finical but through effective suppression and examination such evil in the banking sector can be detected easily and arrested.

c. There is very reoccurring problems of bank managers granting loans above their discretion’s and power without adequate collateral’s and this has resulted in huge losses to banks and some are the courage of liquidation. But adequate inspection and examination has provided in elating solution to this ugly trend .

d. The fear of luguidation and frequent rationalization and or retrenchment in banking sector has created fear anxiety and job insecurity workers in the banking sector tend to indulge in many despicable acts to survive these rang days. But through inspection and through examination the problem can be take of some banks within Enugu metropolis had save several embossing situation emanating from franduienl practice.

1.4 OBJECTIVE OF STUDY

The purpose and objective for which thus study was designed to achieve are here under stated as follows.

a. To identify how inspection and examination can be of assistance towards effectuation management of banking sector within Enugu metropolis.

b. To determine the magnitude of bad debts resulting from loans issued to customers which have not been recovered and also whether adequate provisions for bad debt are made for such bad debts etc.

c. To inform bank management though inspection and examination ill efficacy of their banking system and operations and recommend possible are as of change .

d. To cheek and examine how bank management grant loans over their power limit or discretion .

Limit as approved by the management .

DEFINITION OF TERMS

1. Loan: this is a sum of money tent to the government domestic and foreign lending or being lent.

2. Budget estimate of problem future income and expenditure that made by a government similar estimate made by a business company.

3. Gazette: official periodicals with legal notices news of appointment promotions of officers and officials.

4. Cheques: is an order in writings drawn on a bank and payable on demand.

5. Examination: it examining or being examined it was found that the signature was not genuine the prisoner is still under being examined.