CRITICAL ANALYSIS OF FUND MANAGEMENT IN PROVIDING A SOUND BANKING SYSTEM

CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY
The central Bank of Nigeria is a federal government bank. It is referred to as the father of all banks in the county as it is responsible for issuing currencies and regulating country’s monetary policies.

The Nigeria commercial banks are controlled by the central bank through its clearing houses. A system by which inter-bank, in-datedness is settled.

There are twenty five banks in Nigeria with commercial banks in Nigeria carryout other banking functions, they concentrate mostly on deposit banking.
The management of fund in commercial banks with particular reference to union banks of Nigeria plc is the topic review in the project.

They make up of the firms, capital structure, the management of fund, motive of holding’ money, the firm financial statement to outsiders and its operations are the subject matter of the review.
1.2 STATEMENT OF THE RESEARCH PROBLEM
In this Era of bank distress, management of funds has been a matter of concern to banks, government and customers alike.

The language of business is money and banks are the custodial of money.
Based on these parlances, it will not be out of time to conduct a research on fund management in commercial banks, using union bank plc as a case study.
1.3 RESEARCH QUESTIONS
The project work is intended to review the management of funds of commercial banks with particular reference of union banks of Nigeria plc.
As a result of this, the following question arise
1. What is the bank’s sources capital of fund?
2. What constitute the bank’s capital structure?
3. How does the bank manage its cash?
4. What are the functions of the banks regarding cash management?
5. What is the economic importance of bank?
6. What are the other kinds of service rendered by the bank?
7. What are the effects of environmental and structural change?
1.4 THE OBJECTIVES OF THE STUDY
The objectives of the study are as follows,;.
1. To define the term “fund management”
2. To identify’ the functions of commercial banks
3. To critically examine fund management in commercial banks
4. To appraise the problems encountered by banks in the management of its fund.
5. To ascertain roles of commercial banks in business development.
6. To make recommendation as to how commercial banks can manage it funds prudently.
1.5 RESEARCH HYPOTHESIS
In the course of this research work, the following hypotheses will be tested.
Hi: analysis of funds management does not bring about efficient use to limited resource and sound banking system in the environment.
Ho: analysis of fund management in providing a sound banking system in Nigeria will bring about efficient us of a limited resources and sound banking in the environment.

1.6 SIGNIFICANCE OF THE STUDY
It is imperative to mention here that the topic analysis of fund management” is a rare topic.
This write up will help to receive the mind rating managers the importance of management of funds.
The study will provides a frame work of knowledge that will assist the existing and potential commercial banks in Nigeria.
Commercial banks will find it useful in developing a good operations system of their banking activities.

The knowledge of the study will not double contribute greatly to the much talked about economy as management of cash is a major factor in a country’s economy.
1.7 SCOPE AND LIMITATION OF THE STUDY TIME CONTRACT INADEQUATE FEEL INSUFFICIENT DATA.
The scope of the study is to carry out an in-dept investigation, unto fund management in Nigeria commercial Banks using union bank plc as case management.