ANALYSIS OF CASH DEPOSITS PATTERN IN COMMERCIAL BANKS
The success or failure and effectiveness or ineffectiveness of any banking or financial sector depends on extent of customer’s patronage and the financial resources available to form and procure the required service oriented facilities. In Nigeria, there are lots of problems associated with banking. The problems include in adequate financial capacity, that is weak capital base, lack of sound technical planning, bad implementation of formulated policies linking the banking operations, inadequate supervision and monitoring of economic changes and large scale financial embezzlement. Due to these problems, many financial firms are distressed and subsequently are closed up. The study therefore examined the cash deposits pattern of commercial banks for the past 10 years with fidelity bank Plc, Owerri as a case study. Data used for this technical research were obtained from secondary source these data were out-puts of cash deposits of customers patronizing fidelity bank plc Owerri from 1998-2007. The data was systematically analyzed using time series models. The study found that there is an annual decrease in the rate of cash deposit patterns in fidelity bank plc Owerri as a study unit of commercial banks. Finally, the study suggested some solutions and also made some fine and worthy recommendations.
The need to monitor, evaluate and make adequate plans for the future compels managers, scientist of various calling and researchers alike to collect data on regular basis on processes that vary as time passes. Observations on such processes when arranged in chronological order (in time sequence) are called time series. A time series is a group of data that has been collected successively over a period of time. Some examples of time series are: the daily cash-deposits of customers, the weekly recorded cash–deposits of the bank, and the weekly or monthly stock levels of a company, the number of patients treated by a particular hospital per annum.
The method of analyzing and interpreting these data is referred to as time series analysis. Time series analysis is very important in business and economic for forecasting purposes.