THE ROLE OF BUDGET IN BANKING MANAGEMENT

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The budget is a financial statement made by the government, which spells out estimated government revenue and proposed expenditure for the coming financial year. A budget consist of a package of proposal regarding revenue, which is likely to be derived from various sources and expenditures, which is likely to be met on various items, for examples: the estimate of United Bank for Africa (UBA) revenue for the 1986 fiscal year was put at 4.3 million, while proposed expenditure was put at 3.31 million of most often. The budget includes an appraised of the performance of the economy during the previous financial year. Major financial and banking system charges are also include for examples, the 1983 re-vitalizing the banks subsidy, the introduction measures for promoting banking system and establishment of a directorate of the banks and infrastructure for the 1992 budget, major policies spell out include among other things, the reductions of persons income and banking profits, the establishment of a banking information services, the establishment of a directorate of employment. In United Bank for Africa (U.B.A), the director prepares the budget with the help of the financial secretary of budget and planning for a budget to be effective, it has to be approved by the director general.

1.2     STATEMENT OF THE PROBLEM

This study is the role of budget in the banking management has effected the Nigerian financial institution with reference to bank. In spite of the position of out financial lost institution to our financial guest the management has not been exempted from a lot of problems. The researcher will identify these problems that confront the banks and financial institutions in Nigeria. Generally, the roles of budget in the banking management are very important in our banking management system. There are many problems that are confronting banking management.   They are:

a) The inability to maintain records of accounting performance.

b) Minimizing (as much as possible) expenditures not authorized by the budgets.      

c) Not able to be monitoring of the execution of priority projects.

d) Other spending the amount for the purpose specifies in the budget.

Again not ensuring the fulfillment of financial and economical aspects of outlays.

1.3   OBJECTIVE OF THE STUDY

The researcher is aimed to accomplish some objectives. It will examine and highlight the roles of budgeting and will also access the impact of inflation and other unforeseen variables on the usefulness of budgeting in banking management system in Nigeria.

To achieve these, the researcher has to

a)  Ascertain the role of budgeting in banking management system.

b)  Ascertain the system of budgeting in banking management system.

This project provides beneficiary sights in nature and roles of budgeting to bankers and manager accountants. This will enhance effective budgeting in their respective organizations. It also provides materials guide and will therefore be of immense benefits to anybody who may wish to undertake a critical review of this work and relative topics in future.

1.4   SIGNIFICANCE OF THE STUDY

This project has laying levels of significance to various categories of its users and readers who may wish to reference to if from time to time. One significance is that it forms a major part of the examination of the researcher for the award of national diploma (ND) in banking and finance. It also affords the researcher a better understanding and appreciation of the subject matter of the roles of budgeting in banking management.