TABLE OF CONTENTS
Cover page i
Certification ii
Dedication iii
Acknowledgment iv
Table of contents vi
CHAPTER ONE
1.1 INTRODUCTION 1
1.2 STATEMENT OF PROBLEM 3
1.3 RESEARCH QUESTIONS 4
1.4 OBJECTIVES OF THE STUDY 5
1.5 RESEARCH HYPOTHESIS PROBLEMS AND PROSPECTS OF CASH MANAGEMENT IN COMMERCIAL BANKS 5
1.6 SIGNIFICANCE OF THE STUDY 5
1.7 SCOPE AND LIMITATION OF THE STUDY 7
1.8 DEFINITION FOR KEY TERMS 8
1.9 ORGANIZING/PLAN OF THE STUDY 9
CHAPTER TWO
2.1 LITERATURE REVIEW 11
2.2 HISTORICAL BACKGROUND OF UNION BANK OF NIG PLC 12
2.3 APPRAISAL OF CASH MANAGEMENT APPLICATION 14
2.4 DEFINITION OF CASH MANAGEMENT AND MOTIVE OF HOLDING CASH 15
2.5 PRINCIPLE OF CASH MANAGEMENT 17
2.6 INSTRUMENT OF CASH MANAGEMENT 18
2.7 MONTERREY POLICY 19
2.7.1 INSTRUMENTS OF MONETARY POLICY 20
2.7.2 FACTORS OF CASH MANAGEMENT 21
REFERENCES 22
CHAPTER THREE
3.1 RESEARCH METHODOLOGY 23
3.2. SOURCE OF DATA COLLECTION 23
3.3 SAMPLE SIZE 25
3.4 RESTATEMENT OF RESEARCH PROBLEM 25
3.5 DATA ANALYSIS AND TECHNIQUES 26
3.6 THE DESIGN OF THE STUDY 27
3.7 THE POPULATION OF THE STUDY 27
CHAPTER FOUR
4.1 DATA PRESENTATION AND ANALYSIS DATA PRESENTATION 28
4.2. ANALYSIS OF RESULTS 29
4.3 DISCUSSION OF RESULT 43
4.4 RESULT RELATING TO HYPOTHESIS TESTING 43
4.5 POLICY STATEMENT 47
CHAPTER FIVE
5.1 FINDINGS 48
5.2 CONCLUSION 49
5.3 SUMMARY 50
5.4 RECOMMENDATIONS 52
REFERENCES 54
QUESTIONNAIRE 55
CHAPTER ONE
1.1 INTRODUCTION
The concept of management was evolved as a result of existence of man. Hence, it could be traced back to the evolution of money. In this case, the origin of money which brings about cash management in our contemporary commercial backs really comes as the aftermaths of the difficulties of trade by barter. Trade by barter is a system and practice where goods are exchanged for goods and services. Barter system has many defects and drawbacks. These include the difficulty of double coincidence of wants, time and energy wastage, difficulty in ascertaining the value of commodities, discouragement of large quantities and variety of purchases, deferred payment, installment payment and borrowing large scale production and the likes.
Having identified the defects inevitable by barter system, people were forced to fashion out a generally acceptable means of exchange i.e. money. It is worthy to note that the paper money presently in use was originated from the receipt the goldsmith issued to people who kept gold and other valuables with them. As goldsmiths were taught to be honest, merchant people started keeping their gold with them for safe custody. In retain the goldsmith gave the depositors receipts promising to return the gold on demand. These receipt of the goldsmith were substitutes for money, such paper was back by gold and was convertible on demand into gold. This ultimately led to the development of bank note and today, money has another form other than paper called coin.
Thus, money is any thing that is generally acceptable as a medium of exchange for making payment, settlement of debt or other business obligations. The qualities of money such as generally acceptability, portability, durability homogeneity, divisibility, recognizability and scarcity make money and prudent management. Paper money and coins are collectively called cash. Today, customer deposit money with banks and banks give a promise to pay on demand the amount deposited by the customer. The customer can withdraw all his or her money in cash for the purpose of settling his or her debts or he or she can issued cheque by asking the bank to transfer the stated sum form his deposit to beneficiary.
So, the continued patronage of a bank by a customer depends on some important factor among which are the following:
– Availability of cash to meet the immediate and urgent needs of customers.
– The qualities of services rendering.
– The proximity of the back to the customer’s business premises.
– The approach ability and business acquisitive of its manager e.t.c.
Of all the reasons listed above, there is one which ranks supreme to all other reasons and that is the ability to strike balance between the shareholder and customer i.e. problem of profitability and liquidity are equally the utmost. The bankers has to keep enough cash in order to meet customers demand at the time will serve the interest of the shareholder who are expecting returns over the investment.