THE SOURCE AND APPLICATION OF FUNDS TO A COMMERCIAL BANKING SECTOR (A CASE STUDY OF ACCESS BANK PLC,). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE

ABSTRACT

This project work examines the sources and application of funds in a commercial banking sector with a particular reference to Access Bank Nigeria Plc.  This is an attempt to explore and reveal the extent to which the bank is sourcing its funds and how it uses those funds so generated in achieving the bank’s goals and objectives with a particular reference to laid down accounting principles and Central Bank’s Prudential guidelines on commercial banks.  Also to include is the review of related literature, text books, magazine, newspapers, journals and even the proper website on the internet will be browsed for easy reviews, analysis and down loading of current related information for the project work.  The study will also include the various ways and method of data collection i.e. primary and secondary sources through interviews, observations and examination of existing banks records.  The major difficulties to be encountered in the course of this project are time and financial constraints as collection and analyzing of data requires a lot of time, to pay regular visit, to the venue of the case study, attending lectures, writing of assignments and quiz, visiting the cyber café for internet browsing and also attending one’s domestic responsibilities.  Financial requirements such as production and distribution of questionnaires, transportation and binding of the project work expenses forms the major limiting factors to the project work.  The research study will also highlight the need for prudential management and project accountability with good policies on loans and advances as the way for the bank to acquire maximum liquidity and affective application for the accrued funds by customers and shareholders.  The challenges of the modern banking in a global trend and proper solutions and recommendations for the bank development, investments and enhanced customer relations will also be highlighted.

CHAPTER ONE

INTRODUCTION

Background of the Study

The source of funds in an organization denotes the various ways in which cash inflows to operate the business is realized.  The followings are some of the ways cash came into a business:-

Through an increase in liability

Through an increase in net worth

Through a decrease in asset

Through a net profit after tax

Though sales of shares, preferred or common stock

It also shows ways an extra money comes into the organization through consultancy services, borrowing in form of loan.  Summarize sources of funds to any organization devotes all the ways money comes into an organization for its operational utilization and for achieving its stated goals and objectives.  However for an organization to thrive well it must also spent money to achieve its stated goals and objectives, thus application of funds refer to the various ways the sourced funds are put to usage in order to increase the value of fixed or working capital.

THE SOURCE AND APPLICATION OF FUNDS TO A COMMERCIAL BANKING SECTOR (A CASE STUDY OF ACCESS BANK PLC,). A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE