MISMANAGEMENT IN FINANCIAL INSTITUTIONS – CAUSES, EFFECT
ABSTRACT
A financial institution is an organized body, concerned with the management of money. This is to say that the institution is responsible for the lending and borrowing of money. In other works, it is an institution involved in financial intermediation where money is mobilized and channeled from the public dialing (those who have surplus fund and want to some to those who want to invest in productive activities) some of the institution in Nigeria are “CBN, merchant bank, commercial bank, insurance company, Development banks, stock exchange market etc. Mismanagement is defined by “Land-man English dictionary” as control or deals with private, public or business affairs badly or unskillfully etc.
The mismanagement is also defined by “oxford English dictionary version” as mismanage, bad improper administration to manary badly or wrongly. Then financial mismanagement according to the above definitions may be improper administration bad or wrong use of money inadequate collateral security of granting loan mis appropriation collateral of money or management of finance unskillfully. The central bank of Nigeria (CBN) is the open bank of a national that serves as the main source of revenue to the government, it equality gives advisory measures to the government. And also help the government extremely in international trade etc.
To the public and private individual bank especially the commercial banks provides draftier support to the public and individual affairs. The bank grant loans advances, make payment locally or outside Nigeria. In fact they perform varieties of functions to satisfy the financial needs of all types of customers from small personal account holder to big incorporations and public organization. That is by accepting deposits, safe custody agency services e.t.c.
This industries have grown beyond optimistic expectoration over the year or period in the number of bank that expanded in five years. The variety of bank increased and the growth of the industries resulted to loss of professionalism in services, increasing fraud owing to the craze for material wealth, inflating of contract, God fatherism poor portfolio and other back malsfeasence which has contributed extremely to the constant report of financial mismanagement in a financial institution.
