A STUDY OF CONTROLLING OF CUSTOMER’S ACCOUNT BY THE COMMERCIAL BANKS. A CASE STUDY OF CITIZENS INTERNATIONAL BANK LTD.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

“Habit” is a settled disposition or tendency to act in a certain way, especially one acquired by frequent repetition of the same act until it becomes almost or quite involuntary, a settled practice or established and regular standard of behaviour. Banking habit as used in this study, refers to the settled practice or acquired tendency of patronizing the Banks by frequently utilizing the various services offered by banks and a widespread banking awareness. Controlling of customer’s account as known today evolved from a rather humble beginning when the goldsmith discovered that only a small proportion of the money kept with him for safe custody was in fact required by the depositors at any one time. He therefore developed a system of controlling the amount left with him and the amount led to other people.

The banking system which later inherited this found out that controlling is a major aspect of the management of customer’s account. In view of the above, the Commercial Bank’s Customers account and later seeking ways to see if the standards are being operated as prescribed is known as controlling aspects for customers account. Indeed, commercial banks have been and are likely to remain the document financial intermediaries in Nigeria for they at present account for over 51% of the resources of the financial system tot he economy. They therefore occupy a strategic position in the economy and are more than most other units or sub-sectors able in all respects to influence the course of development. No wander, notwithstanding the deregulation of the economy, banking is still one of the most controlled or regulated industry in Nigeria. In the amendment to the monetary policy circular No. 21 of January, 1987, the Central Bank of Nigeria (CBN) stated that “in order to further enhance and achieve a more efficient resources allocation, the following changes were made ….. all controls on interest rates were removed in line with the emphasis on deregulation of the economy. This goes further to show the importance of commercial banks in the economic growth of the country, because in spite of the deregulation the entire economy, the banks are still constantly kept in guidelines of the Monetary Authorities. The 1957 report of J.B. Loynes of the Bank England paved the way for the establishment of the Central bank of Nigeria. This act was passed on 15th May, 1958 and the bank began operation on the 1st of July, 1959 with an authorized capital of N1.5million of which N1.25million was paid up.

STATEMENT OF PROBLEMS

Organizations are formed to achieve some of the organizational goals. In a private or profit making as much s possible while public enterprises are mainly created to render services tot he public. which ever role, the organization is set to achieve, it must need some resources to go about it. Those resources includes money, man, material and machine. Usually, these resources are entrusted in the hands of some employees of the organization.The tendency is that some of the resources are misappropriated and the policy, rules and legal requirements not complied with. As a check on this, management may set up a controlling aspect, which will be charged with the responsibility of monitoring the activities of the employees and eecting management control