THE IMPACT OF MANAGEMENT OF RISK IN NIGERIAN BANKING INDUSTRY
TABLE OF CONTENTS
TITLE PAGE … … … … … … … … i
APPROVAL PAGE … … … … … … … ii
DEDICATION … … … … … … … … iii
ACKNOWLEDGEMENT … … … … … … iv
TABLE OF CONTENTS … … … … …… … v
LIST OF TABLES … … … … … … … vi
1.1 Background of the Study
- Statement of the Problem
- The purpose of the Study
- Scope of the Study
- Significance of the Study
- Research question
- Definition of term
- LITERATURE REVIEW
2.1 Meaning of Risk/Risk management
- Conception of Risk management
- Risk Identification
- Risk Measurement
- Risk Control
- Some notable aspect of Risk management
- Summary of related Literature reviewed
- RESEARCH METHODOLOGY
3.1 Research design
- Area of the Study
- Population of the Study
- Sample and Sampling procedure
- Instruments for date Collection
- Validation of the Instruments
- Reliability of Instruments
- Administration of the research instruments
- Method of data analysis
- Data Presentation and Results
4.1 Presentation of data
- analysis of data
- test of Hypothesis
- interpretation of results
- Summary of Finding
5.1 Discussion of Finding
- Implication of Research Findings
- Suggestion of the Study
- Limitation of the Study
This study is aimed at appraising the Impact of Risk Management on Nigerian Banking Industry with reference to AFRI Bank Nigeria Plc Enugu.
The work will be composed of five Chapters.
Chapter one will treat the introduction including Background and signestudies, Statement of the problem, purpose, Scope and significance of the study. To cap Chapter one four research question and four hypothesis will be formulated.
Chapter will deals with review the literature on which the following we be found: meaning of Risk, Conception of Risk management, risk identification, Risk Measurement, risk Condor, some notable aspects of Risk management and Summary of related literature Seviewed.
Moreso, the data that were analyzed on Chapter thee will be presented and the result Summarized on Chapter Four.
Chapter five will discusses the result. The Conclusion will then follow immediately implication of research findings, recommendation, suggestion for Further research and limitations of the Study will also come under Chapter Five.
1.1 BACKGROUND OF THE STUDY
Inspite of our numerous national problems, which some times tend to darken our national and individual self esteem, It is universally acknowledged that Nigeria Scholars, Accountants Securities and there Professional have performed most creditably in their respective discipline in the competitive international area to assess the impact of Risk management in Nigeria banking industry.
The need of a study in the area steems form the fact that through risk management is very important management function will much has done to eliminate or minimize the adverse effects of possible financial loss by
(1) Identifying all the potential sources of loss
- Measuring the Financial consequences of a loss occurring and using control to minimize actual losses or their Financial consequences.
On writing this research work successfully one cannot fail to say what bank is all about because the seesense of this research centres mostly on the nature (impact) of risk management in Nigerian banking industry.
There are many definitions of bank as there are defines. It is been a here clean attempt overtime to define what s a bank, several school of thoughts, professionals and bodies have made bold attempt to address this issue. Oxford advanced learner dictionary, Simply defined bank as establishment for keeping money and valuables, safety the money being paid out on customers order. However, bank could be generally described as a company carrying the business of receiving money and collection of drafts or cheques for customers subjects to obligation of honouring cheque drawn upon then from time to time by the customers to the extent of the amount available on their account or agreed facility.
J.W Gibert also defined bank or a banker as dealer in capital or more properly, a dealer on money. He is in intermediate party between the borrower and the lender. He borrows from one party and lends to another.
Adekanye (1986) united kingdom bills of exchange act 1882 defined bank as a body of persons whether incorporated or not who carry on the business of banking also the bankers, Books evidence Act o 1879 stated what the expression bank and banker mean persons partnership, or Company on the business of bankers and having duty make, or return to the Commissioner of on land revenue and also any savings bank certified under the any post office saving bank of recent, two leading authorities on banking law have attempted to define bank or bank as a place of receiving money and collecting drafts.
Dr. Herbert Hart on his book law of Banking proffered define that a banker is a person carrying on the business of receiving money and collecting drafts for customers subjects to the obligation of honouring cheque drawn upon them from time to time by the customers to the extent of the amounts available on their current accounts. Paget (1961) defined a bank as a corporation or persons who accept money on current accounts pays cheques on such accounts or demand and Collected chequed for customers.
From the about definitions none of them is encompassing, comprehensive and compete. The corollary of the above definitions is that unless you duty wholly r partially is that of receiving money for credit off a current, from which depositors might withdrawn on demand by cheques, that person corporation on establishments is not a banker.
However 1969 banking act of Nigeria defined banking as the business of receiving money from outside, sources and deposits irrespective of the payment of interest and the granting of money loan and acceptance of credits.
The purchase of bills and cheques are sales of securities for the accounts of others of the incurring of the obligation to acquire claims in resect of loans prior to their maturity in, or the assumption of quaranteen and other warrantees for others or the effecting of transfers and clearings, others transactions as the Commissioner may on the recommendation of the central banking by order published on the Federal government agzette designated as banking business.
From the above, it can been seen that unless the principal or substantial part of the business consisted of receiving money for the credit of the customer which the deposition must withdrawn on demand by cheque an establishment would not come within the definition.
Nevertheless, the bank role on the present day financial intermediation is for beyond that given by our past defines for the purpose of this work, references on the bank is he function could be drawn mainly or risk related activities.
Banks therefore, generally perform a key function of reducing risk of financial transaction of their customers who placed funds with them and borrowers who are enabled to have the uses of these funds. To survive bank it must develop strategies effective enough to cope with the risks inherent in financial intermadition and other of both physical and more nature prevalent in banking and Nigeria economic environment the ability of the banking to perform its tasks efficiently and on harmony with there needs of the public and economic goods set by the monetary authorities depends to a large extent in efficient and effective management of Risk inherent on the sector.