BANKER-CUSTOMERS RELATIONSHIP IN NIGERIA BANKING INDUSTRY WITH SPECIAL EMPHASIS ON RIGHTS AND DUTIES (A CASE STUDY OF UNION BANK OF NIGERIA PLC)

ABSTRACT

INTRODUCTION

BACKGROUND OF THE STUDY

        Before going into the subject of this study “banker customer relationship” it is very essential to have an insight into what a banker’s and who really is a customer. From the time immemorial, it has been a difficult and controversial task to find an acceptable definition of a banker because of the diverse activities carried out by banks. But according to Decree No. 12 of 1990 section 16 (1) of the chartered institute of bankers define a banker as “a person who is consideration of remunerations received or to be received engage himself in the practice of banking procedure”.

        It is also essential to identify what a bank is though there are so many definition of the word bank. However, we shall try as much as possible to se few of the definition as proffered by scholars.

        According to 2(1) of Bill of exchange Act of 1990 defined a bank as “a body of person whether incorporated or not, who carry on the business of banking”.

        While according to Dr. Herbert Hart tries to defined a bank as “a person or company carrying on business of receiving monies and collecting drafts for customers subject to the obligation of honoring cheque drawn upon them from time to time by customers to extent of the amount available on their current account”.

        Mean while, different people visit banks for different reasons, while some people, visit banks to cash their personal cheque or issued in their favour, other go to deposit cash or cheque it was however decided in TREAT WESTERN RAILWAY V. COUNTRY BANKING COMPANY LIMITED (1901) that a customer is a person who has” some sort of account either deposit or current of some similar relation with a bank.

        However, having some sort of account with a bank is not a condition precedent to be a customer.

        Due to the bankers customer relationship, the customer and banks have obligatory rights duties which they own each other and it shall be briefly discussed, primarily the nature of the banker customer relationship is contractual.

        The nature of the banker customer relationship bein special, generally and essentially contractual can take place in the following form.

i.            Debtor – creditor relationship

ii.          Principal agent relationship

iii.        Bairlor-Bailee relationship

iv.         Mortagor – mortgagee relationship

v.           Executor – Trustee relationship.

Furthermore, in view of the bank-customer relationship banks peforms and renders service to their customer and their services candidly draw researcher’s attention.

STATEMENT OF RESEARCH PROBLEM

        The project has been able to provide answer to the following research question.

1.          What is a bank and a banker?

2.          Who is a customer?

3.          In what way can a banker – customer relationship exist?

4.          What are the right and duties of a banker?

5.          What are the right and duties of a customer?

6.          How can the banker-custom relationship be established?

7.          Can the banker-customer relationship be terminated?

OBJECTIVES AND PURPOSE OF THE STUDY

        The following has been the aim and the objectives of the study.

1.          To explain the meaning of a bank and a banker

2.          To highlight who a customer is

3.          To highlight the relationship between the banker-customer

4.          To enumerate the right and duties of a banker

5.          To enumerate the right and duties of a customer

6.          To highlight the implication of banker-customer relationship

7.          To expatiate the termination of banker-customer relationship

SCOPE AND LIMITATION OF THE STUDY

        This research is making a study basically on banker-customer relationship and their rights and duties arising from this relationship much work would be based on the nature of banker-customer relationship and various services rendered by bankers to their customer.

        Furthermore, this project has been restricted to commercial banks since they dealt largely with purely descriptive in nature and concentrate on union bank plc

        This research has a lot of limitation in it make-up which has due to the diversity of the topic. The methodology has limited by a number of factors. Firstly, some respondents might refused to return their questionnaire. Also responses to the question might not necessarily represent the opinion of the respondents despite the techniques used to obtain a fair representative sample and there by reduced bias to the minimum.

        More so, time and finance constraints are other factors or difficulties that has been encountered during the course of data collection, this has not allowed us to visit all the Union bank plc. Thus data collection will be limited.

RESEARCH METHODOLOGY

        The uses of primary and secondary mode of data collection is of greater help to this research work. The instrument used for collection of primary data are as follows: The presentation of questionnaire and personal interview which was conducted with some of the worker in union  bank of Nigeria plc.

        The source of data collection is secondary data includes the following, the use of text books, magazine, newspaper, lecturer-note and annual report from the bank.

        All the collected has been analyzed through the descriptive statistic and inferential statistic method.

SIGNIFICANCE OF THE STUDY

        This project work is basically designed to focus on the nature of banker customer relationship and services which the banker rendered to their customer, it is also designed to serve the interest of the readers like students, bank customer and member of the society. A general readers who has no previous knowledge of banking and it also in treat in findings out what the subject is all about would find this project very educative and helpful.

DEFINITIONS OF (UNFAMILIAR TERMS/ CONCEPTS)

i.            Bank: This is a person or company carrying on business of receiving monies and collecting draft for customers subject to the obligation of honouring cheques drawn upon them from time to time by customer to the extent of the amount available on their current account.

ii.          Banker: This is a person who in consideration of remunerations received or to be received egaged him self in the practice of banking procedure.

iii.        Customer: This is a person who maintains and openes an account with a banker enjoys any of the service of a bank.

iv.         Relationship: This is a contractual agreement between the banker and the customer which is legally binded and has legal consequences.

PLAN AND ORGANIZATION OF THE STUDY

        This research work is divided into five main chapter and each chapter has the following content.

        Chapter one is the general introduction consisting of the aim and objectives of the study, significance of the study and limitation of the study.

        Chapter two dealt with the literature review the purpose of reviewing all known (literature that has relevance to the topic being discussed in the project work.

        Chapter three dealt with data collection and research methodology.

        Chapter four dealt with data presentation and data analysis using descriptive and inferential statistics method.

        Chapter five is concerned with the findings, summary, conclusion recommendation and references.

TABLE OF CONTENTS

Title Page                                                         i

Certification                                                     ii

Dedication                                                       iii

Acknowledgement                                            iv

Proposal                                                           vi

Table of Contents                                             xiv

CHAPTER ONE: INTRODUCTION

1.1      Background of the study                                  1

1.2      Statement of the research problems                4

1.3      Objective and purpose of the study                  4

1.4      Scope and limitation of the study                    5

1.5      Research methodology                                     6

1.6      Significance of the study                                  7

1.7      Definition of unfamiliar terms / concept          8

1.8      Organization and plan of the study                  9

CHAPTER TWO: LITERATURE REVIEW

2.1      Definition of a bank, banker and customer     10

2.2      The nature of banker-customer relationship   12

2.3       The rights and duties of a banker and a customer 15

2.4      The implication of banker-customer relationship 21

2.5      The termination of banker customer relationship 23

CHAPTER THREE: CASE STUDY AND METHODOLOGY

3.1      Historical background of union bank plc 27

3.2      Mode of data collection                            30

3.3      Design and data collection instrument    31

3.4       Characteristic of the study population and sampling 34

3.5      Administration of the data collection instrument 33

3.6      Procedure for processing collected data           33

3.7      Limitation of the methodology                         34

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1      A brief introduction of the chapter                   35

4.2      Presentation of data                                         36

4.3       Presentation of data according to the annual report 36

4.4      Analysis of data based on questionnaire administered                                                    43

4.5      Analysis of data according to annual report     47

CHAPTER FIVE: FINDINGS, SUMMARY, RECOMMENDATION AND CONCLUSION

5.1      Summary of the findings                                 48

5.2      Summary and conclusion                                        49

5.3      Recommendation                                             51

5.4      Suggestion for further study                            53

Reference                                                         54