MISMANAGEMENT IN FINANCIAL INSTITUTION: EFFECT AND SOLUTION
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MISMANAGEMENT IN FINANCIAL INSTITUTION: EFFECT AND SOLUTION
EFFECT AND SOLUTION OF MISMANAGEMENT IN A FINANCIAL INSTITUTION (BANK)
The investigation was carried out to identify mismanagement in the banking sector of the economy. The project was broken down into chapters.
The first chapter discussed the problem reasons for the investigation, the significance of the study, and the definition of words.The second chapter examines banking crisis in the financial system.
Chapter three presents the hypothesis to be tested as well as the formular for determining the hypothesis. The fourth chapter is all about testing the hypothesis and the results of the testing.
Finally, in Chapter 5, form the conclusion and summary, as well as examine the data presented and make recommendations.
INTRODUCTION TO CHAPTER ONE
1.1 STATEMENT OF THE PROBLEM AND THE PURPOSE OF THE STUDY
According to Henri Fayol in Principles of Management 1, the effective management system is the master key to the success of any institution (financial and non-financial).
This might be accomplished with the help of the director, managing director, management staff, and all other employees in the organisation. The chief executive officer (CEO) and managing director play the most important roles.
According to Luther Gulick, management is simply the organising, planning, executing, managing, and directing of resources in an organisation.
This research is based on financial institutions such as banks, and there are two types of resources found in a bank: human and material resources. Money and other inanimate objects found in banks are examples of material resources. Management is a personal endeavour that necessitates a personal touch.
The following are the study’s objectives:
To determine the root cause of bank mismanagement.
to investigate how it is carried out by bank officers and staff
To understand its impact on the affected banks and the government; and to establish whether it has an impact on the economies of the nations.
To determine the methods that banks can use to solve and put to use the mismanagement of resources.
1.2 RATIONALE FOR THE STUDY
The investigation of mismanagement in the financial industry (bank) is now required because.
The study will help society or a country comprehend when a bank is mismanaged by its personnel or officials. As a result of bank mergers and acquisitions,
when a bank is unable to manage its resources according to the central bank, this policy was meant to ensure a strong and trustworthy banking industry capable of assuring the safety of depositor funds and playing an active role in Nigeria. Economy.
Banks have resorted to consolidation through mergers and acquisitions in order to handle the problems.
Improved management: Businesses can also be joined for the goal of getting needed management talent in order to gain access to already existing market research and development methods.
Resource utilisation that is efficient
This results in higher output in plant rationalisation and the joining of compatible sales operations, concentration of technical talent, specialised labour, and encouragement of the industrial or company product and marketing unit.
1.3 THE SIGNIFICANCE OF THE STUDY
This work has been completed with every skill, care, and caution in order to give the desired and required purpose and meet the aspirations of as many people as possible who will find it worthy of future inquiry.
As a result, it will go a long way towards reviving our financial institutions, particularly the banking industry, which has seen a lot of financial leakage leading to bank mismanagement and bank failure over the last decade.
Advantages of his work:
Public education on the problem of bank distress
Instill distrust in individuals, corporations, and organisations that may have had that distrust for banks, and finally and importantly, advise bank management on the best measures to take to prevent or lessen the impact of mismanagement in the banking industry sectors.
1.4 DEFINITION OF TERMS
Mismanagement is simply bad management.
Bank
A bank is a financial institution that accepts deposits and repays cash on demand. Webster’s financial dictionary defines it as “an institution where money and other valuables, including tangibles, are kept for custody or purpose.”
Material resources in banks are inanimate objects found in banks such as money, books, computers, furniture, and other materials. Its structure and surroundings are very noteworthy.
Human resources in banks refer to the labour force or persons employed in the banking industry.
Liquidation refers to the process of closing down a failing business.
Liquidity can also refer to a bank’s capacity to meet its short-term obligations as they come due. To maintain a solid liquidity position, a bank must have an adequate amount of non-earning assets such as cash, call money, treasury bills, and so on.
Profitability
This is the idea that measures the amount of money earned by the ban from its operations. Banks are designed to generate a profit, and their profitability position is used to gauge their performance.
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