Evaluating The Influence of the traditional function of banking acceptance of deposit

CHAPTER ONE
1.0 INTRODUCTION
In every organizing irrespective of its size, ownership, structure, impact of ration analysis on management decision making occupy a crucial position.
However, given this centrality, it can be said that behind every successful organization, the process in which the management arrive at decision making is very important as far as financial management is concerned in the private sector of the economy and specially in a banking institution like united bank for Africa (U.B.A)
In a nutshell, the impact of ration analysis on management decision making which is the most preoccupation of this research work is referred to the manner through which the management of organization takes decision suitable for profit as possible, future planning, controlling current performance and future development through liquidity analysis, leverage analysis and activity analysis.
Significance change has taken place in recent years in the size and complexity of both private organization and public organization because of this management is faced with evaluation in technical, social political and economic forces.

a result, the methods of arriving at the decision as become more difficult to management especially in accounting activity of the organization.
This research is devoted to examination of some major impact of ratio analysis in financial institution (united bank of African).

1.2 HISTORICAL BACKGROUND OF THE CASE STUDY
Today’s united for African Plc (U.B.A) is the product of the merger of Nigeria third and fifth largest banks, namely the old UBA and erstwhile standard trust bank Plc (STB) respective and subsequent acquisition of erstwhile continental bank limited (CTB).
The union emerged as the first corporate combination in the history of Nigeria banking.
United back for African history dates back to the founding of old UBA in 1961, and erstwhile STB and CTB both in 1990 although today’s’ UBA emerged a time of industry consolidation induced by regulation, the consolidated UBA was borne out of desire to lead domestic sector to a new era of global relevance by champion the creation of the Nigeria consumer.

Finance market leading a private public sector partnership at supporting the acceleration of Nigeria economic development, and growing the institution while spreading its footprints across African to earn the reputation as the face of banking in the continent.

Today the consolidated is the largest financial services institution West African with a balance sheet size in excess one trillion naira (under USD eight billion) and more six million customer account operating out of the two most vibrant economics in the sub region Nigeria and Ghana.

It as over six hundred and thirty (630) retail distribution centers across Nigeria, its main operation base, and 8 branches in Ghana, outside Africa, it also has presence in New York and Cayman.
United bank for African (UBA) Ilorin main branch has the total staff strength of 44 staffs, of which 6 the senior staff, while 35 are junior staff.

The bank is made up of 3 units which are the marketing unit is headed by various persons such as the branch manager. Branch operational manager and auditor.

1.2 STATEMENT OF THE PROBLEM
The part of ratio analysis as a tool for decision making have the following area of concern. 75 ratio analysis useful in investment appraisal?
i. Whether management rely on ration analysis for decision making?
ii. Do ration analysis really determine the wealth maximization of shareholder? Or
iii. It ratio analysis or management tool or technique use in determining the liquidity, stability profitability and efficiency of the organization?
iv. Whether ratio analysis can be used to ascertain the strength, weakness, opportunity and treat of the organization.
v. Whether ration analysis can be used to determine the trend of development and performance of the organization over time.
At the time of chooses this topic the above was what the researcher have in mind and therefore pushes to fine out what is the need for ratio analysis in banking institution like UNITED BANK FOR AFRICA

1.3 OBJECTIVE OF THE STUDY
The primary objective of this researcher is to fine out how efficient and effectively does the management evaluate its financial position.

Also the performance of the institution with regards to the financial analysis or ration analysis in making a quantitative judgement about the institution financial position and it’s achievement which include. It is further generalize as the following:
1. The effective implementation of the traditional function of banking acceptance of deposit to find lending.
2. Efficient financial resource mobilization without inflationary money supply expansion for economic development specially when external borrowing is viewed as a last resort.
3. increasing sense of; commitment and identification with the institutional and it’s good by institution a design and activities of people and adopting a participating or democratic style of management
4. Maintaining accountability of assets.