TABLE
OF CONTENTS
CHAPTER ONE
1.1 INTRODUCTION
1.2 statement
of the problemS
1.3 RESEARCH QUESTIONS
1.4 OBJECTIVES OF THE STUDY
1.5 RESEARCH HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY
1.7 SCOPE AND LIMITATIONS OF THE STUDY
1.8 DEFINITION OF TERMS
1.9 PLAN OF THE STUDY
CHAPTER TWO
2.1 LITERATURE REVIEW
2.2 HISTORICAL BACKGROUND OF UNITED BANK FOR
AFRICA (UBA)
2.3 THE ROLE OF DEPOSIT MONEY BANK IN ECONOMIC
DEVELOPMENT
2.4 ROLE
OF CENTRAL BANK IN REGULATING ACTIVITIES OF DEPOSIT MONEY BANKS
2.5 CHALLENGES
FACED BY DEPOSIT MONEY BANK
2.6 SOLUTION
TO CHALLENGES FACED BY DEPOSIT MONEY BANKS IN THE ECONOMIC DEVELOPMENT
2.7 SOURCES
OF FUND FOR ASSET AND LIABILITIES
LIQUIDITY RISK
2.8 TYPES
OF ASSET AND LIABILITIES
2.9 BASIC
CONSIDERATION FOR DEPOSIT MONEY BANK
2.10 LIMITATION
TO FINANCIAL RATIO IN ASSET AND LIABILITIES
CHAPTER THREE
3.1 RESEARCH METHODOLOGY
3.2 SOURCES OF DATA COLLECTION
3.3 POPULATION OF THE STUDY
3.4 SAMPLE SIZE
3.5 METHOD of DATA COLLECTION
3.6 METHOD OF DATA OF ANALYSIS
3.7 Limitations of methodology
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION OF RESULT
4.1 DATA PRESENTATION
4.2 DATA ANALYSIS
4.3 TEST OF HYPOTHESIS
4.4 INTERPRETATION OF RESULTS
CHAPTER FIVE
SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY
5.2 CONCLUSION
5.3 RECOMMENDATIONS
REFERENCES
CHAPTER ONE
1.1 INTRODUCTION
There are some complex problems which are
common in almost all financial institutions. One of these problems is assets
and liability management. Proper analysis and diagnosis of this crucial task of
any financial oriented organization has been neglected or over looked in the
past and has led to the folding up of some financial institutions like forum
investment and national bank of Nigeria Plc to mention a few.
It should be noted that National Bank
Plc is now coming up through divine touch and effective management of assets
and liability concepts.
It will be of utmost importance to
analyze to some extent what constitutes assets and liability management at
early stage. Asset can be termed to be in banking as money generated from the
services bank rendered to their customers. Management shows how assets and
liability should be properly implemented and managed.
This aspect entails the proper
monitoring of the plan that has been formulated managerially. It has to be
monitored so that if there is any deviation from such plans, control could be
effective to save the situation from getting worse with all the above
explanations of managing asset and liability is embodied in the project work.
Moreover, management of asset and
liabilities is being examined in the Nigeria deposit money bank. This project
work intends to focus its attention on United Bank for Africa Plc (UBA), on how
asset and liabilities can be managed efficiently and effectively in order for
all the deposit money banks operating in an economy like Nigeria, for example
would be able to achieve its aforementioned objectives in banking industry.
Generally all deposit money banks are noted are noted to be retail bank, this
is because they accept deposit from the entire public in small amount of money.
Also, they operate a vast network branches all over the country unlike the
merchant banks that have few branches and for this reason they are called whole
sales banks.
The key functions is the acceptance of
deposit from their customer it is then left for them to make judicious use of
such money kept with them, the deposit money bank must be able to pay the
depositors their money as soon as the customers requested. The interest charged
on the customer current and other account serves as one of the main source in
which deposit money bank get for assets their business.
When simplifying the management of
asset and liability in commercial banking the theory of liquidity and
profitability cannot be over looked. The theory emphases the fact that
commercial banking should be able to make use of money kept with them by their
customers inform of lending it out to some dependable financial institutions or
individuals with an agreement of paying interest on the money borrowed. Deposit
money bank should be able to invest such money in a way that will give loan
from their customers to have access to their money on demand deposit. The
ability of a bank to their money on demand deposit.
The ability of bank to
operate towards meeting or attaining its aims will determine the success of
such bank.
The research work will not fail to
examine the major problems encountered by commercial banks in the management of
assets and liabilities activities and processing of fund for the present and
future use of such assets.
In conclusion, there are various types
of commercial banks, the management of their fund by which it should be giving
out it investment inform a blend of any means is dependent in a certain
procedures and recommendation would be also made to solve the problem in
managing the available assets in commercial banking industry using United Bank
for Africa (UBA), Ilorin Branch as a case study.
1.2 statement
of the problemS
The study has chosen United Bank for
Africa (UBA) as it case study and the topic entails a very wide range but
gracefully limited to Skye Bank in Ilorin branch.
However, there are relevance and
similarities in various book authorities, management principle and organization
performance. Nevertheless in this work fact data are the best and accurate to
the topic chosen.
i.
Bank’s desire to minimize deposit interest cost by varying applicable deposit
rates with the interest sensitivity of specific pools of customer funds.
ii.
Bank’s written and unwritten commitments to meeting spurts in loan demand even
when the regulators seeks in monetarist fashion, to restrain aggregate deposit
growth.
iii.
The third face is bank’s desire to offset regulatory burdens imposed on them by
reserve requirements and deposit insurance fees. In a nutshell, these explanations
of asset and liability management rest on three basic concepts.
-
The concept of minimization of bank interest expenses
-
The concept of the importance of customer relationship
-
The concept of circumvention of regulatory instructions. The United Bank for
Africa Plc in 2003 paid a penalty of several hundreds of thousands of naira as
penalties to the Bank for circumvention and non-compliance with the bank’s
stipulations.
1.3 RESEARCH QUESTIONS
1.
What are the effects of controlling of assets
and liability by Bank?
2.
What are the reasons why banks have bad debts?
3.
What are the factors within bank control?
4.
Define liquidity
5.
What are the distributions of liabilities?
6.
What are the objectives of fund management
strategy?
1.4 OBJECTIVES OF THE STUDY
To look critically towards asset and
liabilities management in Nigeria deposit money bank or Nigerian deposit money.
To ensure that an efficient banking
service which will improve the impact and nature of asset and liabilities
management in Nigeria deposit money bank.
To give light to the perspective of
Nigeria deposit money bank which is suffering from the mysteries of
mismanagement assets?
To bring easy understanding to the and
impact to assets and liabilities management in Nigeria deposit money bank using
United Bank for Africa (UBA) Plc as a case study.
1.5 RESEARCH HYPOTHESIS
Hypothesis 1
Ho:
Asset and liabilities management do not have positive effect on bank
profitability.
Hi:
Asset and liabilities management have positive effect on bank’s profitability
1.6 SIGNIFICANCE OF THE STUDY
This
project work will serve as a guide to all the deposit money banks operating in
Nigeria on how assets can be effectively managed in order for the banks to be
able to meet their aims and objectives (targets).
Also, this study will help government
authorities on how it can draw guideline to foster proper management of assets
for and system operations in Nigeria. In addition, this will guide the
individual firms, corporate business that want to go into banking and liabilities
management
Deposit money bank exists to make
profit like any other commercial. They accept deposit from their customers and
other investment.
Deposit money bank system will be able
to maximize profit and have efficiency if they can undergo effective assets and
liabilities management.
In conclusion, the properties of
deposit money banks and the use of the idle funds can be achieved through
effective assets and liabilities management in the Nigeria deposit money bank.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
This study will research into different
parties that guide how assets are managed by the board and government.
More so, all policies and variable
that constitute the concepts that guide management of asset will be research
upon.
Also, questionnaire will be administer
to UBA Plc, Ilorin branch on the operational activities and how UBA has been
able to achieve its profit making objective through proper management of the
available assets.
Moreover, this study will touch the
organizational structure of the UBA in order to know specifically the
department that is in possession of the banks. The study will discuss assets
management banking and other business relating to banking.
LIMITATION
OF STUDY
Like every other research work, the researcher
faces one limitations or the other in the course of carrying out this research.
Limitation such as financial constraint, lack of adequate time, unavailability
of essential textbooks and poor attitude of respondents to the questionnaire.
However, the researcher ensured that despite all this limitations, the quality
and completion of the work is not affected.
1.8 DEFINITION OF TERMS
1. LIQUIDITY:
According to Oyetoyan (2008) define liquidity, liquid is the ease with which
the asset can be sold (or redeemed) at an unknown future time at a known
nominal naira price on short notice and with minimum cost.
2. DEBENTURES:
A debentures may be define as a bond, acknowledging a loan, generally under the
company’s seal and bearing a fixed rate of interest.
3. ASSET: Asset can be defined
as any item of economic value owned by an individual or corporation, especially
that which could be converted to cash.
4. LIABILITY: An
obligation that legally binds an individual or company to settle a debt.
5. LIABILITY:
According to Adebayo .O. (1999:15) monetary policy defined as discretionary
measures or actions undertaken by monetary authorities usually through the
(CBN) designed to influence.
6. STOCK: The capital raised by
a company through the issue of shares.
7. SHARE: A financial
instruments that shows that one owns a part of a company that provides the
benefit of limited liability.
1.9 PLAN OF
THE STUDY
This research
report is basically categorized into five chapters.
Chapter one will contain the
introduction, statement of research problem, research question, objectives of
the study, research hypothesis, significance of the study, scope of the study,
definition of key term and plan of the study.
Chapter two deals with the literature
review of asset and liability management in deposit money bank, the effect of
control findings policies government, reason why banks have part of funding and
types of acceptable collateral securities in the Nigeria deposit money bank.
Chapter three consists the research
methodology, data collection, source of data, population of the study, sample
size, method of data collection, method of data analysis and limitation of
methodology.
Chapter four contains presentation and
analysis of result, introduction, presentation of result, analysis of result
and policies issues.
Chapter five offers the summary of
findings, conclusion and recommendations. It will also deal with the references
and appendix
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