THE ROLE OF BANKING SUPERVISION AND EXAMINATION IN NIGERIA (A CASE STUDY OF UNION BANK OF NIGERIA PLC, ILORIN)

ABSTRACT

The purpose if writing this project is for the partial fulfillment of the requirement for the award of higher national diploma in business administration and management.

This research project is aimed at examine the role of banking supervision and examination in Nigeria, using Union Bank of Nigeria Plc, Ilorin as the case study.

The project work is going to critically evaluate the problems such as poor management and loss of depositors funds encountered by the Nigeria financial institution. As a result of this problems. The research work be carry out with the aim of analysis and finding a lasting solution to this stated problems of Banking in Nigerian. The research project  will  also analyze then reasons why banking need to be supervise and examine, the conduct of supervisor and examined on site function and offsite functions, licensing, operational  requirement at reserved requirement.

The research methodology is to give a comprehensive report of the methodology employed in collecting information. In this study the research will made use of both primary and secondary source if data in setting necessary information that is needed in writing this project. Chapter four deals with the presentation and analysis of data collected with the use of statistics instrument. There is needs to analysis the data collected since, all the data that is going to be gather is through concise use of questionnaire. Chapter five is the concluding part and some useful recommendation is going to be made to further ensure the role of banking supervision and examination in Nigeria.

TABLE OF CONTENTS

Title Page                                                         i

Certification                                                     ii

Dedication                                                       iii

Acknowledgement                                            iv

Abstract                                                           vi

Table of contents                                             vii

CHAPTER ONE

INTRODUCTION                                              1

1. General reading                                       2
2. Statement of the problem                        3
3. Significance of the study                          4
4. Objectives of the study                             5
5. Definition of terms                                   6
6. Limitation of the study                             7
7. Background of the study                          9

CHAPTER TWO

• Review of literature                                          13
• Why are the banks supervised and examined  15
• The legal frame work                                                17
• The conduct of supervision and examination  18
• On the site function                                         19
• Off site function                                               20
• Operational requirement                                  22
• Reserve requirement                                                24
• The Nigeria deposited insurance corporation   26

CHAPTER THREE

3.0   Methodology                                                    30

3.1   Research design                                               30

3.2   Source of data                                                  31

3.3   Sampling size and procedure                           32

3.4   Data collection and procedure                         33

3.5   Data analysis of single percentage                   34

CHAPTER FOUR

4.0   Analysis of data                                               37

 4.1  Name of people to whom the question were administered.                                                       38

CHAPTER FIVE

• Summary                                                         51
• Conclusion / recommendation                                52
• Bibliography                                                    54
• Appendix

CHAPTER ONE

1.1   GENERAL READING

The banking system in nigeria started many years ago commercial banking activities started in Nigeria in 1892.

        However, in other to promote the growth of domestic money and capital market and central bank of Nigeria was established by the central bank of Nigeria act of 1958.

        One of the principal objectives of central bank of Nigeria is to promote monetary stability and sundry in the financial system.

        Over the years the central bank of Nigeria as conducted regular supervision and examination of banks as a means of maintaining close watch on banking corporation to ensure that banks comply with banking laws and other directive stipulated by the monetary authorities. This help to promote high leveled quality banking services are maintained.

        The central bank of Nigeria took over the entire functions of banking supervision and examination in January 1966, and on the awareness that adequate and proper supervision demanded and specialized institution that would bring together an experienced team of banks and other related professionals to facilitate the functions of bank supervision.