THE IMPACT OF SUPERVISORY ROLE OF CENTRAL BANK OF NIGERIA ON PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA

THE IMPACT OF SUPERVISORY ROLE OF CENTRAL BANK OF NIGERIA ON PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA.

(A STUDY OF UNION BANK OF NIGERA PLC, LOKOJA, BRANCH).

BY

200S/HND/BAMS/149

BEING A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY KOGI STATE POLYTECHNIC, LOKOJA IN PARTIAL

FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

HIGHER NATIONAL DIPLOMA (HND) IN BUSINESS

ADMINISTRATION AND MANAGEMENT STUDIES

OCTOBER, 2010.

ABSTRACT

This project was carried out on the topic "The impact of supervisory role of

Central Bank of Nigeria on the performance of commercial banks in Nigeria. (A case study of Union Bank of Nigeria PIc Lokoja, Kogi State). The objective necessitating this study is to identify and highlight the contribution of supervisory role of Central Bank in performance Technological conductive to the Global Banking. To aid in this literature were received Twenty (20) were administered to the staff of the Bank and Twenty (20) were returned, the simple percentage method of analyzed was used based 0 the analysis the following finding were received that the capital base of the Bank is enough to sustain a supervisory role of Central Bank of Nigeria and the Bank have enough skills manpower to carry out a supervisory role of Central Bank. In the light of the above finding the following recommendation were made that the Central Bank of Nigeria should direct the commercial Bank and the sector of the economy in which they are permitted to rent much loan on timely basis and the Central Bank of Nigeria should device appropriate monetary polices to regulate the affair of commercial bank in Nigeria.

TABLE OF CONTENT

Title Page

Approval page

Dedication

Acknowledgement

Abstract

Table of content

CHAPTER ONE: INTRODUCTION

1.1 Background of the study

1.2 Statement of Problem

1.3 Objective of the study

1.4 Research Question

1.5 Statement of Hypothesis

1.6 Significance of study

1.7 Scope and Limitation of the study

1.8 Definition of term

1.9 Organization of study

CHAPTER TWO: LITERATURE REVIEW

2.0 Concept of central banking.

2.1 Traditional function of central bank

2.2 Monetary Policy formulation and implementation

2.3 Objective of monetary policy

2.4 Banking supervisory by CBN

2.5 Review of banking supervision

2.6 Instrument of monetary and credit policy of central bank

2.7 Rational for banking supervision

 CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction

3.2 Research Design  

3.3 Population of the study, sampling and sampling techniques

3.4 methods of Data collection

3.5 Procedure for Data Analysis and Model Specification

3.6 Justification of methods of Data collection and Analysis

3.7 summary

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Introduction

4.2 Data Presentation and Results

4.3 Discussion of Findings

4.4 Summary

CHAPTER FIVE: SUMMARY AND CONCLUSION

1.1 Summary of finding

1.2 Conclusions

1.3 Recommendation

Bibliography

Appendix 46

CHAPTER ONE:

INTRODUCTION

1.1     BACKGROUND OF THE STUDY.

People need to keep their valuable with a well established and trusted organization so as to enable them get hold of it whenever they need them e.g. money, materials, documents etc. these are called banks. Despite their being well established and organized, they can be owned by an individual, group, community e.t.c. in order not to have any doubt about any of which are operated, with the Federal Government set up a governing body to monitor all the individual banks collectively to meet the demand of the people. The governing body is known as the Central Bank of Nigeria (CBN). CBN is a government established body set up to monitor the performance of commercial banks. This is done by laying an outstanding rule which the commercial bank must strictly adhere to wand otherwise face the consequence if they fail to obey part of the monitory of CBN on commercial bank are they give guidelines on interest rate, exchange rate, their liquidity i.e how financial strong their bank look like etc.

Due to the constraint monitoring and governing of commercial bank they stand reliable. Impact of the supervisory role of central bank of Nigeria on the performance of commercial bank to maintain a sound financial stability and to ensure commercial bank confident.

The reason why the researcher is interested in this topic is to find out, if the role reforms policy of the central bank of Nigeria prescribed to the commercial bank are strictly adhere to by the management of the banks.

Central Bank of Nigeria is known to be the banker of commercial bank in which they accept deposit from the commercial bank. Also in wanting to find out the control of Central Bank of Nigeria bring our attention on how the monetary polices is being implemented by the commercial bank, maintenance of minimum capital base and risk base supervision. This bring us to know how the Central Bank of Nigeria monitors the commercial bank that is to bring to our notices as to how the liquidity of the bank is, which is telling us on the financial back up of the commercial bank.

Furthermore to make sure that the rules governing the interest and exchange rate are not violated knowing fully well that the monetary polices rate (MPR) determine if the interest rate should be high or low.

Another interesting part initially is that they used to give corporate governance on all commercial bank but due to the reform of Central Bank of Nigeria they device a strategy that governor each commercial bank by their risk management.

All individual bank customers attempting to take loan no matter how much or wanting to exchange other currency to another will want a fair interest rate which is govern by Central Bank of Nigeria.

1.2     STATEMENT OF PROBLEM.

 The Central bank of Nigeria serves as one of the regulatory agency    concerned with the supervision and regulation of commercial banks in Nigeria. Thus CBN have had to contend with issue of raising the quality of bank supervision and bank operations to a world standard.

However, there exists some problem in the supervision of banks which according to some scholars like Coen & Heartier, (2005) Thatcher,(2005) argued that the regulatory complexities with the business environmental regulations appear to create difficulties  for potential entrants.

1.3     OBJECTIVE OF THE STUDY.

The general objective of this study is the determine impact of the supervisory role of Central Bank on the performance of commercial bank in Nigeria. The following are the specific objectives of the study.

ü To ascertain how Central Bank of Nigeria monitors activities of commercial banks.

ü To identify the step at which CBN monitors the interest and exchange rates of commercial bank.

ü To know if the commercial bank complies with the rules conferred to them by C.B.N.

ü To proffer recommendations as to how best central bank can supervise the commercial banks.

1.4     RESEARCH QUESTION.

This study shall examine the following questions:

To what extent does the supervision of central bank of Nigeria has on the performance of commercial banks in Nigeria?

1.5     STATEMENT OF HYPOTHESES.

The following relevant research hypotheses are provided to guide to study.

HI: Closed watch on commercial bank by C.B.N can increase their performance.

Ho: Closed' watch on commercial bank by C.B.N cannot increase their performance

HI: The supervisory role of CBN on commercial bank can enhance efficiency.

Ho: The supervisory role of CBN on commercial bank cannot enhance Efficiency.

1.6     SIGNIFICANCE OF THE STUDY.

This study is important in several ways the work is intended to be benefit to the government, business research, customers and all the commercial bank under review.

Below are some of the importance of the study: -

o   To provide a benchmark against which the success of Central Bank can be measured.

o   It will enable the Central Bank of Nigeria (CBN) to examine its roles in the development and regulation of commercial banks.

o   It shall stipulate the attainable way of solving the problem faced by bank at implementing commercial banks.

o   To educate the members of the public on commercial bank issues.

1.7     SCOPE AND LIMITATION

In scope, this study shall focus on the impact of supervisory role of Central

Bank on the performance of commercial bank especially Guarantee Trust Bank where I will limit my study. This project work will cover some aspect of commercial bank reform programme.

This constitutes a limitation of time and financial resources, materials equally constitute a limitation to this work. The success of this work is a function of the responses from the interview and questionnaire. Some of the respondents are reluctant to disclose some useful information which was also a constraint.

1.8     DEFINITION OF TERMS.

The researcher could define some terms which will be strength and very useful in the research work;

CENTRAL BANK OF NIGERIA (CBN): - This is the only financial institution entrusted with the management and control of the national monetary affairs. It is also the Apex of bank in Nigeria.

PERFORMANCE: - To act in accordance with the requirement or obligation of somebody or to carry out through completion of an action.

SUPERVISION: - To be in charge of something and make sure that everything is done correctly.

INTEREST RATE: - The extra money that you pay back when you borrow money or that you receive when you borrow money. Or what you receive when you invest money.

EXCHANGE RATE: - The process of changing amount of one currency (the money used in one country) for an equal value of another.

MONETARY POLICY: - is defined as any method that is adopted by government either to expand or contract money supply in the economy through the Central Bank of Country.

LIQUIDITY RATE: - This is used to measure a firm ability to satisfy it short term obligation that is it's used to ascertain the short term solvency and liquidity of a form.

1.9     ORGANIZATION OF THE STUDY

The chapter one contains background of the study, statement of problem, objectives of the study, research question, statement of the hypotheses, significance of study, the scope and limitation of the study, definition of key terms used in the study and organization of the study.

The chapter two discuss the concept of central bank, the various function performed by central bank, objective of monetary policy formulation and its implementation, banking supervision by CBN, various literature review on banking supervision, the various instrument of monetary and credit instrument of central bank, the rational i.e the reason for banking supervision.

The chapter three discusses the steps in carrying out the research work, the design used in the research work, the definition of the population of the study, the sample drawn and how it is drawn, the sources of data, the method use in collecting data and the specification of model.

The chapter four has introduction and presentation of data gathered for purpose of the research work, discussion of findings and the summary of the chapter.

While chapter five summarize all activities from chapter one to four, the conclusion derived from the outcome of the study and recommendation for possible future action.

CHAPTER TWO

LITERATURE REVIEW

2.1     INTRODUCTION

This chapter is designed to review such literature on the impact of the supervisory role of Central Bank on the performance. In order to wider the vision of the researcher on the subject matter under study. The review is carried out on such topics to facilitate an in depth search for relevant concepts to commercial banks in Nigeria with singular emphasis on Guarantee Trust Bank plc, Lokoja branch Kogi State.

2.2     CONCEPT OF CENTRAL BANKING.

According to Abiraj (1987), a Central Bank is the national institution that traditionally possesses the monopoly of the issue of legal tender money in a country. It is entrusted with the custody of the cash reserve of the banking system.

It functions as a banker to banks and acts as lender of last resort. It usually acts as banker and financial adviser to government and custodian and manager of the nations' foreign exchange reserve.

Nationalism was another important factor that accounted for the establishment of Central Bank in different countries. Nationalism dictated that the national image of each country should be adequately projected in international financial relationship. Besides, the currency Board that existed (the West Africa currency Board serve former British West Africa Countries, including Nigeria, Gold coast, Sierra -lone and the Gambia). Where the automatic currency exchanges institution with no monetary management function, no control of banking operations, and were foreign in character and orientation. Thus, indigenous Central Banks were required to reverse these trends and hence assume control over monetary and banking issues in the affected territories. Such was the background to the establishment of the Central Bank of Nigeria (CBN) in 1958, but its commercial operations started in July, 1959.

In many developing countries, Central Bank was set up by government to perform the traditional function similar to those of the more developed countries as well as engage activity.

In the promotion of Economic development; Unlike in developed countries where developed financial systems were already carrying out sophisticated banking function, Central Banking having been justified by the need to control the existing financial system and promote the goal of national Economic development, many developing countries had rudimentary financial system that were predominantly, if not wholly foreign controlled. This there was the urgent need in these economics to establish the necessary indigenous financial institution and arrangement which could have been used to achieve the goal of their respective national Economics.

2.3     TRADITIONAL FUNCTION OF CENTRAL BANK.

The functions are unlimited thus; we have to discuss some of it which is as follows:

2.3.1 According to T.A. Udenwa (1997), It serves as Banker to other banks: -As Central Bank of Nigeria (CBN) is to the federal Government so also it does to other commercial banks, merchant banks, development banks and other financial institutions. In this regard, all banks in the country keep accounts with the CBN, this help in having smooth interbank operations.

The supervisory department of the CBN also examines and scrutinizes the books of these financial institutions to ensure that they do not contravene existing banking rules and regulations. The purpose is for the bank to promote and sustain reasonable banking services for the public and ensures a high standard of conduct and professionalism in the banking activities. The relationship however impose mutual obligation on both side the CBN as a banker to other bank issue directive on cash reserve and liquidity ratios prudential requirement, sectoral credit allocation and other activities of bank. This is done through it monetary policy circular, which is issued at the beginning of each fiscal year. Staff sanctions are usually imposed on bank for non-compliance with monetary guide lines. It also act as the lender of last resort under the new system of open market operation (Omo) in accommodating temporary needs liquidation.

2.3.2 According to Fapounda (2002). It serves as currency issuer and Distributor: - Economic transaction in the Nigeria Economic is to large extending cash oriented. Consequently the bank currency issue function which involves distribution safe custody of stock and management of orders constitutes a vital part of day to day management of the economy Central Bank of Nigeria (CBN) manages the country domestic and external debt in conjunction with Federal Ministry of Finance. It is also empowered to issue debt instrument and manage Federal government domestic debt on term and condition agreed upon by the Government and the bank (CBN)

2.3.4 According to Allen (1982), it serves as foreign exchange managers. This ensures that the mobilization and development of foreign exchange disbursement and utilization are in line with economic priorities and within foreign exchange budget.

2.3.5 According to Idris (2010), It provides facilities to entertain public complaints, The (CBN) ensures that bank do not take advantage of their customers, in addition to its supervisory activities the bank maintain public complaint desk (PCD) at its head office and each of its branch and currency centre in the state of the Federation Instance where bank are found to be unfair to their customers appropriate sanction including fines are impose on such banks.

2.4     MONETARY POLICY IMPLEMENTATION AND     FORMULATION

The quantity of money is a key determinant of price and inflation in nearly every theory of the functioning of the economy.

According to Williams (1981) Economic theories the quantity of money also plays a significant role in determining the Economy level of real output and labour employment. Given that the Federal Reserve System has the ability to influence their quantity of money. We begin by considering the two ultimate economic goal or objective. Monetary policy is formulated with the basic assumption that all stake holder and van able necessary for the realization of the target objectives will behave appropriately but this has and always been the case for instance, the behavior of the fiscal variable has often been in consistent with monetary policy objective and that has not monetary management any easier.

Furthermore, banks remain the channel for the transmission of monetary policy.

However a sound and healthy banking system, as the existence of basic infrastructure, such as electricity and communication facilities that will support the modern technology on which banking is hinged, is imperative for monetary policy implementation. Beside operators in banking system are out to exhibit high ethical' standard integrity and transparency. These are needed to build confidence on which sound banking system is bed rocked. With such place it will be a lot easier to attract the large proportion of funds out sides into the banking system their by making monetary policy implementation more effective. Beside bank ovule it as a moral duty to make realizable returns to C.B.N and other authorities to facilities proper decision making.

In general effective monetary policy implementation foster stability which is crucial for the growth and development that re-enforce the need for the trust of monetary policy to remain mostly non-accommodating (miller and vein hoose 1993) in height of this we are going to hinges on monetary policy implementation.

MONETORYPOLICY BEFORE 1986. :

According 'to Clarkson (1989), as the analysis of the institution growth and

Structure indicates that the financial system growing rapidly.

In the mid's 1980 to 1990 the number of commercial bank rose from 29 in 1986 to 64 in 1995, decline to 54 in 1998 and currently to 25 in 2006 the economy environment that guided monetary policy before 1986 was characterized by the Dominance of the sector.

In order to maintain price stability and healthy balance of payment position, monetary management depend on the use of direct monetary instrument such as credit ceiling selective credit control administered interest and exchange rate as well as prescription of cash reserve requirement and special deposit. The most popular instrument of monetary policy was the insurance of credit rationing Guidelines which primarily set the rate of exchange for the loans and advance. The sectoral allocation of bank credit in C B N guidelines was to stimulate the productive sector and thereby system inflationary pressures. The fixing of interest rate at relatively low level was done mainly to promote investment and growth.

Occasionally, special deposits were imposed to reduce the amount of free reserve and credit creating capacities of the bank minimum cash ratio were stipulated for the bank. in the mid a such cash ratio were usually lower than those voluntary maintained by the bank they prove less effective as a restraint on their credit operation. From mid 1970 it becomes so difficult to achieve a monetary policy.

Generally monetary aggregate, government fiscal deficit GDP growth rate inflation rate and balance of payment position moved in undesirable direction compliance by bank with credit guidelines was less than satisfactory.

The major problem on monetary management were nature of monetary control frame work, interest rate and non - harmonization of fiscal and monetary policy.

The monetary control frame work which relied heavily on credit calling and selective credit control failed to achieve the set monetary target as their implementation become effective with time. The rigidity controlled interest rate regime especially the low level of various rate encourage monetary expansion without promotion rapid growth of the money and capital market.

The low interest rate on government debt instrument did not sufficiently attract private sector saver and since CBN was required by law to absorb the unsubscribed portion of government debt instrument large amount of high powered money were usually injected into the economy. In the oil boom era, monetization of foreign exchange earnings resulted in large increase in government expenditure which substantially contributed to monetary instability in the early' 1980s oil receipt were not adequate to meet increasing level of demand and' since expenditure were not rationalized government result to borrowing from central Bank to Finance huge deficit.

 Thus, the objective of monetary policy since 1986 as remained the same as in the earlier period the stimulation of output and employment and the promotion of domestic and external stability. Monetary policy under SAP was armed at including the emergency of market oriented financial system for effective and efficient resource allocation.

The raising level of fiscal deficit was indentify as a major source of macroeconomic stability so monetary policy was used by inducing efficiency and encouraging good measure of flexibility in bank credit operation the regulatory environment.

However, the objective of monetary policy lies on the following.

1. To create a conductive environment

2. It facilitate proper decision making.

3. It fastens stability which is crucial for the growth and development.

4. Is also the way forward for leading and borrowing?

2.5     BANKING SUPERVISION BY C.B.N

According to Porter (1990), banking supervision is conducted through data collection and analysis of information from statistical return and visit to bank.

Is to foster the public confidence in the banking system, and promote banking habit and financial structure in the country. The Central Bank of Nigeria (C B N) maintain a public complain desk (P C D) in its head office and each of its branches in the state capital which the public can lodge any complain of a bank

Where a case against a bank is proven the bank shall be made to make necessary amend and pay appropriate penalties section are also impose on bank customers who bridge the foreign exchange regulations.

The operation of (C B N) is conditioned by the rapid institution and structural change in the economy long ago there has been a moderate growth in the staff strength of bank in response to its expanded responsibility. The C B N has also continued its drive to computerize it activities in all its branches in response to these challenges. Most users in all departments are regularly trained on information technology to increase the knowledge and improved the bank supervisory role.

Banking supervision enable the early detection of problems which bank and related institution can or may experienced. Supervisory powers are vested in the director of banking supervision and other official appoint.

Central Bank of Nigeria (C B N) makes use of on - site and off - site method of supervision.

2.5.1 ON-SITE SUPERVISION.

According to Dosi (1988), on - site supervision provides the means for appraising bank on a continuous basis and' for suggesting improvement in performance standard. The central Bank of Nigeria Decree 1991 gives the bank statutory authority to examine license commercial bank to our set their book of account. The supervision of the depository institution generally entails.

a)     An appraisal of the soundness of the institution assist.

b)    An evaluation of the adequacy of internal operation, policies and management.

c)     An analysis of key financial indicator such as capital earnings liquidity and interest rate sensibility.

d)    An overall determination of the institution solvency.

e)     Ensuring that banking operation especially external transaction are being carried out in accordance with standard accounting practices.

The (Amel capital Asset management Quality earning and liquidity) rating is used as an internal assessment guide to determine how sound a bank is. If in the process of supervision, the Central Bank of Nigeria observe that the performance of a bank is not satisfactory it may direct such a bank and advice its director on the appropriate action to be taken to correct the situation. In serious cases, a written agreement is issued to direct the bank to take necessary corrective measure and if the weakness of the bank persists, C B N may design a plan to provide managerial assistance.

In case of exigency the board of Governor of the bank may approve the immediate or temporary accusation of failed or problem banks. Occasionally, assistance may be provided through C B N discount wind out to problem institution before their acquisition or liquidation following the routine supervision of a bank, the bank examine prepare a confidential report, this is forward by the governor of the C B N together with recommendation for improved performance to the bank with directive that report should be table at the meeting of board of directors.

The bank examines must forward it report to C B N within two weeks failure for the bank to bank supervision attract stiff penalties.

2.5.2 OFF - SITE SUPERVISION.

According to Dosi (1988), off - site supervision basically involves the analysis of bank return to the C B N as statutorily required. In order to ensure that bank operation and activities are reported as accurately as possible C B N direct that every bank should appoint an external auditor approved by the bank.

Each bank seeks the approval of C B N on the termination or resignation of the bank external auditor gulling reason for such action.

It is also possible that bank many required the auditor to disclose information obtained in the course of the audit provide such disclosure is made in good faith and is relevant to the bank supervision. The auditors is to ensure that prudential requirement are adhered to and is mandate to forward copies of the bank internal report not later than three months after completing each audit exercise to the bank. To facilitate banking supervision, C B N introduced in 1990 a set of prudential guidelines for  licensed band under this guidelines bank are to adopt the risk weighted measure of capital adequacy recommended by Basle committee of the bank for international settlement (BIS). They were to maintain not less than 75 percent of their risk weighted asset as capital up till 1991 and not less than 8 percent from January 1992. Also 5 percent of a bank capital must be tier I or primary capital (paid up) capital plus reserve.

Under these directives, the C B N enforces the use of bank and other financial institution of the statement of accounting recovering period ending on or after 31st December 1990. The prudential guidelines and the statement of accounting guidelines specify the criteria to be used by bank for the classification of loans made for such category to interest recognition with respect to classified loans.

The standard accounting also stipulate rules for classifying bank other asset as well as the treatment of off balance sheet engagement.

The C B N supervise bank to ensure their compliance with liquidity and other ratio as well as with sectoral guidelines on credit in order to fulfill some development objective e.g commercial bank and its subsidiary companies offering financial and related services as to report on such companies along with their monthly returns. As from 1994 only bank that meet up C B N guidelines on cash reserve and liquidity ratio prudential guideline minimum paid up capital adequacy ratio and sound financial management are allowed to expand credit.

2.5.3 REVIEW OF BANKING SUPERVISION

The concept of banking supervision in general has been defined in different ways form different fields, by various scholars.

Sanusi (2009), defined banking supervision as the existence of a set rules of a defined parameter within which financial institution are suppose to operate. This is therefore achieved through monitoring system.

Uwellyn (2000) defined banking supervision as a body of specific rule or agreed behavior either imposed of government or other external agencies or self impose by explicit or implicit agreement within the banking industry that limit the activities and business operation of banks.

Giddy (1984), defined banking supervision as the ability of banks to create money through the extension of credit.

Bench O. (1990), defined banking supervision as the ability of bank to maintain confidence and stability manage monetary policy and fight against system risk and collapses.

The financial stability forum (2001) defined banking supervision as the ability of a bank to ensure sound accounting and the enforcement of effective laws.

Heisman (2001), says the prosperity and strength of the economy relies heavy upon the proper and prudent function of the country financial system.

The researcher's operational definition of banking supervision is the ability of C B N to supervise the banks through the laid down rules and regulations to ensure effective bank operation in Nigeria.

Gardener (2002), in his study of bank supervision from the perspective of command and control, says lawyers and bankers have different opinion as to how bank supervision should be implemented.

The finance definition of banking supervision is the act of monitoring the financial performance and operation of bank in order to ensure that they are operating safely and soundly and following rule and regulation.

Bank supervision is conducted by governmental regulation and occurs in order to prevent bank failure (internet searching).

Giddy (1984) and Sheng (1999) provide four major reasons why banks should be regulated. The first relates to monetary policy the ability of banks to create money. Second as a channel of credit or investments, banks are involved in credit allocation. Third banks are regulated to ensure healthy completion and innovation by preventing the formation of carters. The fourth is for prudential regulation reasons and to mitigate the problem of asymmetric information.

2.6     INSTRUMENT OF MONETARY AND CREDIT POLICY OF CENTRAL BANK.

These are the instrument used by C B N to regulate control the activities of commercial banks. They include: -

                               I.            Reserve Requirement

                            II.            Credit Rationing.

                         III.            Credit Guidelines.

                        IV.            Moral Suasion.

                           V.            Financial Instrument.

                        VI.            Financial Markets.

RESERVEREQUIREMENT: - According to Bredly (1986). The reserve requirements aim at controlling bank liquidity and influencing the volume and not the direction of credit. The reserve requirements in Nigeria include the variable cash ration and variable liquidity ration.

The objective of the variable liquidity in Nigeria is not only to confer on the CBN and use of additional tool in banking system and consequently their ability to create credit. The cash ration is aimed reducing the level of cash reserve balance which the banking system should maintain with the Central Bank policy based on the volume of their deposit.

CREDIT RATIONING: - According to Idris (2010), the Central Bank of Nigeria use the credit rationing measure to curb the amount of money In circulation in the economy by rationing the credit granted to the public.

CREDIT GUIELINES: - According to Bradly (1986), The Central Bank of Nigeria a started involving it statutory power of direct control of bank credit and advances to reflect the economic needs such credit took two forms persuasive approach regarding the allocation of credit on a sectoral basis and preserved credit guidelines approach stipulating credit expansion limit over specified period.

Format of credit guidelines to the bank is often stated by economic Circumstance and the goal of the country. Punitive measure for default one set out in the guidelines and bank are warned not to pass penalties to their customers.

MORAL SUASION. According to T.A UDENWA (1997), this is simply a process by which CBN makes known to commercial banks through informal discussion the direction in which monetary policy to proceed and the contribution which is expected of banks. Moral suasion is a gentle appeal to commercial bank to give (40) forty percent of their loan to small scale industries usually the bank comply. It's imperative to note here that moral suasion instrument do not stand the test of time i.e. is no more applicable by the Central Bank rather a direct system is put in place, this is as a result of the new reform of Central Bank.

However, the instrument of monetary and credit policy employ by Central Bank of Nigeria (C B N) in regulating commercial bank can be classified into general (quantitative) and qualities instrument.

FINANCIAL INSTRUMENTS: - According to Umoru (2009), these are means of transferring purchasing power from the surplus units (savers and unders). These instruments or financial assets constitute a liability to the units issuing them and an asset to holders of such instruments. The financial system offers a wide range of assets. Which are tailored to suit the time preference of both under and borrowers? Such financial assets differ in term of maturity, marketability and riskiness and example of such financial asset are: - Treasury Bills, Treasury certificates, call money development loan stock and bonds.

FINANCIAL MARKETS: - According to Umoru (2009), are complexes of institutional arrangement that facilitates the intermediation of funds. Such markets are money markets, which deal in short term funds. And it is a place where short terms securities are bought and sold e.g T.B, TIC and call money etc. whereas capital markets deal on long term funds. That is it a place where long term financial instrument are bought and sold e.g debentures, stock share and government securities etc.

QUANTITATIVE INSTRUMENT

In performing their various functions financial institutions are expected to ensure prudent management of asset and guarantee the safety of customer funds.

The regulation of the financial institution are evolve to solve many goal including protection of depositor ensuring monetary stability encouragement of efficient and competitive financial and protection of customers interest.

QUANTITATIVE INSTRUMENT

According to Idris (2010), the qualitative instrument unlike the quantitative ones strives to supervise the flow of bank credit into different activities in the countries. Among the instrument of qualitative selective credit the margin requirements.

Direct control of bank is the extent of government intervention of government-becomes visually the only element of control. This may result in conflicting and self contradicting objective when they are taking into conjunction with other instrument margined requirement on the other hand is essentially a qualitative method of credit control which enable monetary authority like the C B N to deal with different sectors n the credit market independently.

2.7     RATIONALE FOR BANKING SUPERVISION

According to Oxford Advanced leaner’s Dictionary 80th edition that is the principle or reason which explain a particular decision, course of action.

Commercial bank is supervised for many reasons among which are:

1.     Banking supervision is carried out as a means of enforcing the directive of monetary authorities.

2.     Bank is supervised to ascertain that the proportion of non-performing loan in bank portfolio is minimized. Generally the main purpose of banking supervision is to evaluate bank loan portfolio internal control system and management practice. Bank examines scrutinize documentation collateral of most large loan and the same of small loans.

3.     Efficient supervision provides the basis for earliest intervention which is erratically factoring protecting the health of the financial system.

4.     To minimize the risk of failure that could lead to the loss of depositor funds. The failure of more banks and systematic financial stress is as a result of multiple contractions in money supply.

2.8     SUMMARY

In this chapter, we try to examine the historical concept of central bank of Nigeria. The traditional function of CBN performed for commercial banks and the Government. The monetary policy implementation and formulation I went further to state the objective of monetary policy, discuss banking supervision in Nigeria and the two method used by CBN which are the on-site supervision and the off-site supervision went ahead to review banking supervision. I discuss the instrument of monetary and credit policy of central bank, and explain the rationale or reason for banking supervision.

CHAPTER THREE

3.1     INTRODUCTION

The purpose of this chapter is to explain the various data used for report writing during the research activity. Some selected topics such as research design, the research population sampling method, the area of the study; method of data collection administration of instrument and method of data, validation of instrument analysis are explained.

The general objective of research methodology is to assist the researcher on comprehending, in the evident possible sense, the process involved in an investigation.

3.2     RESEARCH DESIGN

The design of this study adopts simple method of data collection involving personal interview and administration of questionnaires in preparing the research study. The researcher also made use of tables and simple percentage as the basic instruments of data analysis.

3.3 POPULATION OF THE STUDY, SAMPLING AND SAMPLING TECHNIQUES

The staff of Guarantee Trust Bank Plc Lokoja, form the research population of this study. The population of the bank is fifty two (52) workers which consist of the top management, middle management and junior staff of the bank. The number of top management were two (2), six (6) for the middle management and forty four (44) Junior Staff of Guarantee Trust Bank Plc Lojoka Kogi State.

The sampling techniques used in this research work are random sampling.

Therefore, the respondents were selected based on the knowledge they possess To provide answers to the questions in the questionnaires.

The sample of Twenty (20) respondents was selected randomly from GTBANK PLC.

3.4 METHOD OF DATA COLLECTION

This research used questionnaires and personal interview method legally as instruments. Questionnaires which are set of question which raise enquires on the effect of supervisory role on the Nigeria banking sector, were distributed to the staff of the organizations; similarly, some staff were picked randomly and some enquiry were made by the researcher on issues that were in the  questionnaires.

Answers to such enquires were noted. The research questionnaires are divided into two (2) parts.

Part A of it deals with personal data about the respondent.

Age

Sex

Educational background

Years of experience.

While the second part of the research questionnaires is on the questions which are relevant to the topics under investigation.

3.5     PROCEDURE FOR DATA ANALYSIS AND MODEL SPECIFICATION

There are many methods that can be used in the administration of instrument in any research work, but in this study, the questionnaires and personal interview were used because of the level of its reliability.

Questionnaires were administered to different respondents personally and they were told what was expected from them. The questionnaires were given to staff that had a clear knowledge about the research topic.

Following the administration of instrument, the data were analyzed. The method use in the analysis of response was expressed in table and chi-square text is used so that the work would be presentable in a clear and understanding manner.

Also, included in the analysis is a tabular representation of the item as question retrieved, each consist the response and the number of respondents?

Chi - square formula

X2=

Where 0 =is the observed frequently.

E = Expected frequently

X2 = Chi = Square.

3.6 JUSTIFICATION OF METHODS OF DATA COLLECTION AND ANALYSIS

Personal interview and questionnaires were used for the research work. It is valid because it is mainly complied being the most accurate and convenient method in this study.

The validity was also attested by some experts in the department of math's and statistics, and computer department; Kogi State polytechnic Lokoja and outside the school premise and they attested to it that the instrument to be used will yield a valid and reliable result. The expert also said that the study will go a long way in helping most the commercial banks in7 Lokoja and their customers.

The questionnaires used for the research work consist of Twenty (20) designed to provide answers to Twenty (20) question set for this research work.

Questionnaires were distributed to bank staff both senior and junior staff.

SUMMARY

Throughout the section, which deals with the methodology, the researcher used primary source to find out basic fact about the case under study. The researcher also used Chi square method to analyze data which will be in details in the next section.

This section enables the researcher to gather information that will enable her carry out her research work effectively.

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS.

The chapter is to present, analyze and interpret the data collected during the research.

The analysis is used mainly on data collection from the entire question in the questionnaires:

4.1     PRESENTATION OF DATA

Data presentation is an integral part of a research work because it enables the data obtained from the respondents to be statistically analyzed. It also enables the data obtained from the respondent to be statistically analyzed. It also enables the researcher to have concise findings from the result of the analyzed data.

Out of twenty (20) questionnaires administered in the course of this investigation all of them were duly completed and returned. The twenty analyses below are Base on the twenty (20) questionnaires.

4.2     DATA ANALYSIS

The examination of the characteristics of each item on the questionnaires is necessary as this will be of great important in the discussion and interpretation of the result of research findings.

The instrument of data analysis used by this researcher in this study is percentage.

TABLE4.2.1 SEX DISTRIBUTION OF RESPONDENT.

Alternatives	No. of Respondents	Percentage
Male	15	75%
Female	5	25%
Total	20	100%

Source: Field Survey 2013.

Table4.2.1 shows the distribution of respondent according to sex variable. Fifteen (15) were male representing 75% of the total respondent, and five (5) were female representing25% of total respondent.

TABLE 4.2.2 DISTRIBUTION OF RESPONDENT.

Alternatives	No. of Respondents	Percentage
20-25	3	15%
26-30	5	25%
31-35	10	50%
36above	2	10%
Total	20	100%

Source: Field Survey 2013.

Table 4.2.2 show the majority of the respondent are within the ages of 31-35 years representing 50% of the total sample followed by these range;  26-30 which are five (5) respondents representing 25% of the total of respondents, next are those within the range of 20-25 years and 36 years above representing 15% and 10% of the total respondents respectively.  It implies that those that are within the range of 31- 35years are the majority in the distribution.

TABLE 4.2.3 MARITAL STATUS DISTRIBUTION.

Alternatives	No. of Respondents	Percentage
Single	15	75%
Married	5	25%
Total	20	100%

Source: Field Survey 2013.

Table4.2.3 Shows the result that fifteen (15) respondents representing 75% of the total respondent that are single, while five (5) respondent representing 25% of the total respondents are married.

This implies that the single are more than married in the organization, and they can have time to concentrate on their work.

TABLE 4.2.4 EDUCATION QUALIFICATION OF RESPONDENT.

Alternatives	No. of Respondents	Percentage
WAEC/GCE	0	0%
NCE/ND	12	60%
HND/BSC/MSC	8	40%
Total	20	100%

Source: Field Survey 2013.

Table 4.2.4 shows the education qualification of the respondents. This indicates that twelve (12) respondents representing 60% of the total respondents attained NCE/ND certificate, while eight (8) respondents attained their higher degree.

TABLE 4.2.6 LEADERSHIP QUALITY ADVERSELY AFFECTS THE

IMPACT OF THE SUPERVISORY OF CBN ON COMMERCIAL BANK?

Alternatives	No. of Respondents	Percentage
Strongly Agreed	4	20%
Agreed	8	40%
Strongly Disagreed	0	0%
Disagreed	8	40%
Total	20	100%

Source: Field Survey 2013.

Table 4.2.6 reviewed that 4 respondents representing 20% of the total sample strongly agreed, while 8(40%) also agreed that leadership quality adversely affect the impact of the supervisory role of CBN on commercial bank while eight (8) respondents representing 40% of the total respondents disagreed with this assertion. This implies that majority agreed that leadership quality has effect on the supervisory role of CBN on commercial bank.

TABLE 4.2.8 THE INTEREST RATE POLICY OF CBN ON COMMERCIAL BANKS IS UNBEARABLE?

Alternatives	No. of Respondents	Percentage
Strongly Agreed	2	10%
Agreed	3	15%
Strongly Disagreed	10	50%
Disagreed	5	25%
Total	20	100%

Source: Field Survey 2013.

Table 4.2.8 shows that 2(10%) and 3(15%) of the respondents strongly agreed and agreed that Interest rate policy of CBN is unbearable on commercial banks while 10 (50%) and 5(25%) of the respondents strongly disagreed and disagreed. This implies that the interest rate policy of CBN on Commercial Banks is bearable.

TABLE 4.2.9 THE OPEN MARKET OPERATION IS A MAJOR INSTRUMENT THAT HAS IMPACT ON COMMERCIAL BANKS?

Alternatives	No. of Respondents	Percentage
Agreed	19	95%
Disagreed	1	5%
Total	20	100%

Source: Field Survey 2013.

Table 4.2.9 shows that Nineteen (19) respondents representing 95% agreed, while one (1) respondent representing 5% disagreed. This implies that the open market operation is the major instrument that has an impact on commercial bank.

TABLE 4.2.13 DOES CLOSE WATCH ON COMMERCIAL BANK BY CBN INCREASED THEIR PERFORMANCE?

Alternatives	No. of Respondents	Percentage
Agreed	17	85%
Disagreed	3	15%
Total	20	100%

Source: Field Survey 2013

Table 4.2.13 shows that 17 respondents representing 85% believe that close watch on commercial bank by CBN increase their performances, three (3) respondent representing 15% disagreed. This implies that the close watch on commercial banks by CBN increased the banks performance.

TABLE 4.2.14 THE IMPLEMENTATION OF SUPERVISORY ROLE OF CENTRAL BANK OF NIGERIA WILL HAVE EFFECT ON THE NIGERIA ECONOMY?

Alternatives	No. of Respondents	Percentage
Agreed	17	85%
Disagreed	3	15%
Total	20	100%

Source: Field Survey 2013

 Table 4.2.14 shows that 17 respondents representing 85% of the respondents agreed that the implementation of supervisory role has effect on the

Nigeria economy while 3 respondents representing 15% of the sample disagreed. This implies that the implementation of supervisory role has effect on the Nigeria economy, because the majority of the respondent agreed.

TABLE 4.2.15 THE SUPERVISORY ROLE OF CENTRAL BANK HAS

CONTRIBUTED TO IMPROVED SERVICES IN YOUR BANK?

Alternatives	No. of Respondents	Percentage
Agreed	18	90%
Disagreed	2	10%
Total	20	100%

Source: Field Survey 2013

From the table 4.2.15 it shows that 18 respondents representing 90% agreed while 2 respondents representing 10% of the sample disagreed that the supervisory role of central bank has contributed to improved services in their bank. This Implies that the supervisory role of central bank has contributed to improved services in theirbank.

TABLE 4.2.16 THE SUPERVISORY ROLE OF CENTRAL BANK ON COMMERCIAL BANKS CAN ENHANCE EFFICIENCY?

Alternatives	No. of Respondents	Percentage
Agreed	19	95%
Disagreed	1	5%
Total	20	100%

Source: Field Survey 2013

Table 4.2.16 shows that (19) respondents representing 95% agreed that the supervisory role of central Bank can enhance efficiency, while one (1) respondent representing 5% disagreed. This implies that the supervisory role of central Bank can enhance efficiency.

4.3     TEST OF HYPOTHESIS

The statistical tool used in testing to hypothesis is chi-square (X²).This denoted by Greek letter X² and is used frequently in testing hypothesis concerning the difference between a set of observed frequency of sample and corresponding set of expected frequency.

Formula where:

 X² = Chi square

 O =   Observed frequency

 E =   Expected frequency

HYPOTHESIS ONE

From Table 4.2.13:

HI - closed watch on commercial bank by CBN increase their performance.

Ho - closed watch on commercial bank by CBN cannot increase their Performance.

X²= ∑ (O - E)²

               E

	O	E	O-E	(O-E)2	(O-E)2    E
Agreed	17	10	7	49	4.9
Disagreed	3	10	-7	49	4.9
Total	20	20	0	98	9.8 =T-observed

Degree of Freedom: (n-1); where n= Numbers of categories

N= 2; n-1= 2-1=1

At 5% level of significance = 0.05

From the Chi- square table t-critical =3.841

DECISION RULE:

This states that if t- observed is lower than t-critical, the null hypothesis (Ho) will be accepted. But if t- observed is greater than t-critical, (H1) will be accepted and the Ho rejected. From our table above the t-observed is 9.8 while the t- critical is 3.841. Therefore; the null hypothesis (Ho) is rejected. 

TEST OF HYPOTHESIS TWO

From Table 4.2.16 : 

H1: The Supervisory role of Central Bank on Commercial banks can enhance efficiency.

Ho: The Supervisory role of Central Bank on Commercial banks cannot enhance efficiency.

X²= ∑ (O - E)²

               E

	O	E	O-E	(O-E)2	(O-E)2    E
Agreed	19	10	9	81	8.1
Disagreed	1	10	-9	81	8.1
Total	20	20	0	162	16.2 =T-observed

Degree of Freedom: (n-1); where n= Numbers of categories

N= 2; n-1= 2-1=1

At 5% level of significance = 0.05

From the Chi- square table t-critical =3.841

DECISION RULE:

This states that if t- observed is lower than t-critical, the null hypothesis (Ho) will be accepted. But if t- observed is greater than t-critical, (H1) will be accepted and the Ho rejected. From our table above the t-observed is 16.2 while the t- critical is 3.841. Therefore; the null hypothesis (Ho) is rejected.

4.4     DISCUSSION OF FINDING

The researcher received answer from the respondent which proved that, some selected commercial banks offer advice to beneficiaries of their bank.

However, from finding if there is good corporate governance, transparency and management framework the banking sector will be reformed for effective and efficient risk management which brings about development in the economy activities of the country.

Inadequate financial resources is a constraint to banks in conjunction with one ability of some of the beneficiaries to pay back the loan they received as at when due together with the interest.

CHAPTER FIVE:

SUMMARY AND CONCLUSION

5.1     SUMMARY

This research work is on the impact of the supervisory role of the Central bank of Nigeria on the performance of the commercial Banks. A case study of Union Bank of Nigeria.

Commercial banks in Nigeria are largely unproductive due to the management of fund, inadequate human and technological resources, inability to ascertain the sector of the economy that needs financial assistance, poor response of borrowers to pay their principal loan and interest as at when due and making adherence compliance to CBN prudential guidelines. These problems have however made many Commercial Banks to provide adequate service to interested individuals and corporate bodies in terms of financial assistance, other sector of the economy will suffer hardship.

In view of this, Central bank of Nigeria needs to play a supervisory role over the commercial banks for proper performance of their financial obligation in order to improve the economic status of the country financial and banking wise. It is seen from the research work that Central Bank of Nigeria supervisory role on the commercial bank with emphasis on the instrument of monetary and credit policy have improve the banking sector to a higher standard that is sure of meeting the basic expectation of both individual and corporate bodies.

5.2     CONCLUSION

Commercial banks play important role in the economic development of Nigeria, their services to other sector of the economy must not be ignored. Most businesses cannot function effectively if the banking sector is not well monitored.

The commercial bank can easily and effectively discharge their financial services to the economy if their operations are adequately monitored by the Central Bank of Nigeria from time to time.

Central Bank of Nigeria (CBN) supervisory role play over commercial banks especially in this 21st century, have reduced the level of embezzlement and fraud among banks and bankers, boost up the economy position of the country by providing greater percentage of banks found in the appropriate sector that need urgent and maximum national attention reduces number of unproductive (distress) commercial banks to effective ones.

Central Bank' of Nigeria (CBN) prudential guidelines issued from time to time has also enable commercial banks to employ competent and qualified staffs that are capable of managing the banking industry for a productive economy.

Above all, the effect of CBN on commercial banks in this 21st century has positively boosted up Nigeria economy in all area.

5.3     RECOMMENDATION

Adequate supervision for the promotion of commercial banks in Nigeria should be made by the central bank of Nigeria in order to have a better banking sector adequate for meeting the financial assistance of other sector of the economy.

This can be achieved through the following:

The Central Bank of Nigeria should device appropriate monetary policies to regulate the affairs of commercial banks in Nigeria.

The Central Bank of Nigeria ensures monetary stability in the country and reduces the interest rate on commercial banks which will in turn make easier accessibility of individual and corporate bodies to source for short or long term funds.

The Central Bank of Nigeria should direct the commercial bank on the sector of the economy in which they are permitted to rent much loan on timely basis.

Central Bank of Nigeria should ensure that commercial bank that fail in remitting their return are issued queries fines in order to correct the loop hole in the banking industry.

Central Bank of Nigeria should ensure that any commercial bank that cannot meet the minimum statutory capital of twenty five billion should be forced to merge or be acquired by another bank.

BIBLOGRAPHY

AYUBA, I. J. (2007) Money and Practices of Banking in Nigeria. Lokoja: Richy Publishers and Printers.

BAMIRO M. A. (1998) Banking Supervision Annual Report Examination and Supervision Department of CBN.

FALEGA, S. B. (1987) Residency Nigeria Financial System. Ibadan: University press Limited.

LAWAL K. O. and ABIMAJE N. Y. (2003) Basic Principles Of Economic Volume 2. Lokoja: Richy Publishers and Printers.

OBERA J. O. (2003) Money and Practice of Banking in Nigeria. Lokoja: Oluwafemi Business Centre.

OGWUMA P. A. (1997) Policy Measure of CBN Economic and Financial Sector: Billion Publication of CBN Vol. - 117 (p) 260 April- June.

OLEKAN J. K. (2001) The impact of Reform on the Performance of Financial Sector. Billion, Publication of CBN Vol. 117 (p) 260 -270.

ONYIDO B. C (1991) CBN Monetary and credit Policy Concept Administration and guidelines. The Billion CBN Vol. - 15 No 1 page 75.

OWIYEDI, H. (2001) Management Economic 6ed. U.S.A: Vikas Publishing House PVT Limited.

UMOH, J.C (1986) Economic and Africa perspective. Lagos: John publication limited.

UMORU, T. A. (2004) Basic research method competence and application. Lokoja: 2nd edition printed and published.

APPENDIX

Department of Business

Administration,

School of Management Studies,

Kogi State Polytechnic,

Lokoja,

Kogi State.

rs" September, 2010.

Dear Respondent,

INTRODUCTION LETTER.

I am a HND 2 Final year Student of Business Administration of the above

Institution conducting a research on Impact of Supervisory Role of Central Bank of

Nigeria on performance of Commercial Banks. A case study of Union Bank of

Nigeria PIc., Lokoja.

I am sourcing for information concerning the above topic. All information will be

treated with confidentiality please.

Yours Faithfully,

IDRIS SULEIMAN.

1 . . ,

46

-

QUESTIONAIRES.

Please indicate your response by ticking only one box for each question.

Sex - Male c::::J Female c::::J

2 Age - 20 - 25 years c::::J

36 and above c::::J

3 Marital Status - Single c::::J Married c::::J

4 Qualification - WASC/GCE c::::J NCE/OND c::::J HNDIB.SC

MSC c:::J

26 - 30 years c::::J 31 - 35 years

SECTION B

5 CBN effective supervisory role on Commercial Banks Performance can

solve our economic problem?

a Strongly Agreed [=:J

Agreed c::::J

Strongly Disagreed c::::J

Disagreed [=:J

Leadership Quality adversely affects the impact of supervisory role of CBN

on Commercial Banks?

b

c

d

6

a Strongly Agreed [=:J

Agreed [=:J

Strongly Disagreed [=:J

b

c

d Disagreed

7 Implementation on Monetary Policy Effective Communication and Inflation

problem on the challenge faced by CBN supervisory role on performance of

commercial banks?

a Strongly Agreed [=:J

b Agreed [=:J

c Strongly Disagreed [=:J

d Disagreed

48

8 The interest rate policy of CBN on commercial banks is unbearable?

a Strongly Agreed c.:J

b Agreed c.:J

c Strongly Disagreed c.:J

d Disagreed

9 open market operation reserve requirement, discount rate mechanism and

selective credit control are instrument used by CBN to control commercial

banks?

a Strongly Agreed c:=J

b Agreed c.:J

c Strongly Disagreed c:=J

d Disagreed

10 CBN interest rate and exchange rate contribute positively to the performance

of commercial banks?

a Strongly Agreed c.:J

b Agreed c:=J

c No Idea c:=J

11 The recent minimum capital base requirement by the CBN helps banks in

the implementation of supervisory role strategy.?

a Strongly Agreed c:=J

b Agreed c:=J

c No Idea c:=J

12 Your bank has the necessary skill of manpower to carry out the supervisory

role of the central Bank?

a Strongly Agreed c:=J

b Agreed' c:=J

c No Idea c.:J

49

b

a

b

c

13 Government will be able to ensure regulatory compliance and transparency

in the banking sector if supervisory role of Central Bank is implemented?

Strongly Agreed c=:J

Agreed c=:J

d' i

No Idea c=:J

a

b

c

14

. ~; f \ .

The Nigerian Banks will be able to manage the change that will result from

,

imp1e~J~ting of supervisory role of Central Bank?

}.".

Strongly Agreed c=:J

Agreed c=:J

No Idea c=:J

The supervisory role of Central Bank will have positive effect on the

economy?

a

b

c

15

a Strongly Agreed

Agreed

No Idea

b

c

16 The capital base of your bank is enough to sustain a supervisory role of

Central Bank of Nigeria?

Strongly Agreed c=:J

Agreed c=:J

No I~~a c=:J

a

c

17

, i

The ;jEconomic environment in Nigeria is conducive enough for banks to

,

function effective and efficiency in the banking arena?

Strongly Agreed c=:J

Agreed c=:J

No Idea c=:J

Your bank is ready for the implementation of supervisory role of Central

Bank?

18

50

a Strongly Agreed c=J

b Agreed c=J

c No Idea c=J 'I'

19 The supervisory role of Central Bank has any impact on customer

satisfaction?

a Strongly Agreed c=J

b Agreed c=J

c No Idea

20 The supervisory role of Central Bank has contributed to improved services

in your bank?

a Strongly Agreed c=J

b Agreed c=J

c No Idea c=J

21 The implementation of supervisory role of Central Bank of Nigeria will have

effect on the Nigerian economy?

a Strongly Agreed c=J

b Agreed c=J

c No Idea c=J i,{J

51