THE IMPACT OF SUPERVISION ON EFFECTIVE BANK MANAGEMENT (CASE STUDY UNITED BANK OF AFRICA PLC (UBA) STATION ROAD ENUGU )
CHAPTER ONE
INTRODUCTION
1.1Â Â Â Â Â Â BACKGROUND TO THE STUDY
Banking act (1969) defined banking, as the business of receiving money from outside sources as deposit inspective of the payment of interest, and grant loans and acceptance of credits or the purchase and saves of securities for account of others or in assumption of guarantees and other warrantees for others or the effecting of transfer. And other transaction as the ministry make on the recommendation of the central bank by order published in the federal gazette design as banking business.
The Nigeria Banking system is made up of Central Bank, Development bank, People Bank, Commercial bank etc. The people banks and community bank recently developed or established by decree of the federal ministry government. Banking as a profession has been exist for many decades now but unfortunately, there was no generally accepted statory defective of a bank until 1969.
(1982) described bank as a person or company carrying out the business of receiving money and collecting draft from customers subject to the obligation of honouring cheque drawn upon them from time to time by customers to the extent of the amount written on the cheque or in the account.
The banks are closely monitored and requite by the government through the central bank of Nigeria. This is the ensure that they render service to their customers in a manner consistent. Safe bank is extracted with honour, reputable and hard working personnel. Function of bank management is decision making, the rational selection alternative course of action.
It is at the core or point of planning; A plan cannot be said to extent or exist unless a decision has been reached (Koontz 1984)
The personnel management of the bank establishes internal control procedure for the effective discharge of the major function in order to attain their corporate objectives. In closing this, special attention must be given to communication problem. The structure of the bank organization should have a line and staff structure, so that there will be flow of information from the top management to the lower level. The lower staff can give advice to the top level management whom might accept it or reject it. The free flow information will be a real basis for effective decision making.
Therefore, a need to establish a follow up department to know whether the action is going according to plan and polices, if not correction can be made before it is too late. It is in the light of the above factors that the management function of controlling becomes very desirable.
1.2Â Â Â Â Â Â STATEMENT OF PROBLEM
            Despite the creation of supervisor unit or department in the bank for internal control, it is not clear on the adequacy of human and non human resources for efficient operation of banking industry. This is because bank managers still grant credits (loans) beyond their power limit without collateral. Secondly, there are cases of bad debts resulting from loan given to customers that has not been recovered. Hence the CBN (1990) prudent guideline has not been obeyed and the effect is reported loses or minimal profit. Thirdly, there have been cases of computer frauds, defection and outright removal of physical cash by some employee and outside, this has created unbalanced books, keeping and records.
