CHAPTER ONE
1.0 INTRODUCTION
It is impressive to state that success or failure of any industry (most especially the banking industry) depends on how well the finance is controlled. Some banks have liquidated due to ineffective financial control. Financial control thus be defined as the process which assumes that financial resources are obtained economically on used efficiently and effectively in the accomplishment of desired goals. It will be found that there control parameter or benchmarks, which becomes the standard against which subsequent actions are compared are themselves the product of financial planing decisions.
However, since financial control is an assurance process, it includes the process of decision making. If the assertion is accepted that management consist of decision and actions financial control becomes a part of the process f making financial decision but not the decision themselves. It covers the entire process of monitoring actions emanating form the decision seen as an integral part of financial management, it also forms part of planning, budgeting, accounting, reporting and reviews. A financial control system has some principal characteristic. a. Its focus is on the financial objectives (as giver) b. It compares two typed of data planned or predetermine data and actual data. c. It permeates all aspects of financial management functions. d. It is concerned with those resource revenue and expenditure which can be express in monetary term or can be combined with other quantitative data to express same e.g personal, materials procurement etc. e. It follows a definite cycle that i.e rhythmic as in the budget cycle, accounting cycle, auditing cycle etc. f. To be effective it needs to be co-ordinated and integrated. In this project work the researcher shall enumerate some of the financial tools those employed by the banking industry and their effectiveness.
However, financial system refers to a set of rules and regulations and the aggregation of the financial arrangement, institutions and agents that interact with other and the rest of the world to foster economic growth and development of a nation, it does this by providing a medium of a nation, it does this by providing a medium of exchange which promotes specialization, mobilization of saving from the surplus unit and channeling them into deficit unit of the economy for productive investment which would enhances the productive capacity and overall output and employment. An efficient and a highly developed financial system is essential to a healthy economy. It is primary role is the distribution of capital in the economy e.g the personal saving of an individual placed in a bank, can be loaned to another individual to buy a house or a business form to build a plant thus our can see that the activity if the financial affects every citizen within the economy.
1.1 STATEMENT OF PROBLEMS
There has been an increase in the rate of collapse in the financial institutions most especially the banking industry. These are likely due to a lack of financial control. This has however geared the researcher to look in questions stated below a. What financial control measures were adopted by financial institutions and there adequacy (s)? b. How effective is the financial control system? c. What are the limitations of effective financial control system ?
