Unit 6 PDF - Organisational Structure Of Clearing Banks

Buzzel, D. and Spasovski, S.(2004). Principles of Banking. Washington DC: American Bankers Association Publication Ekezie, E. S. ( 1997). The Elements of Banking, Money, Financial Institutions and Markets.Onitsha: AFRICAN-FEP Publishers..Jhiagan, M. L. (2010). Macro Economic Theory, New Delhi: Mi...

Buzzel, D. and Spasovski, S.(2004). Principles of Banking. Washington DC: American Bankers Association Publication Ekezie, E. S. ( 1997). The Elements of Banking, Money, Financial Institutions and Markets.Onitsha: AFRICAN-FEP Publishers..Jhiagan, M. L. (2010). Macro Economic Theory, New Delhi: Mishkin. F.S. (1992). The Economics of Money, Banking and Financial Markets, New York:HarperCollins Publishers. UNIT 3 ORGANISATIONAL STRUCTURE OF CLEARING BANKS CONTENT 1.0 Introduction 2.0 Objectives 3.0 Main Content 3.1 The concept of Banks and Clearing Banks 3.2 Structure of clearing banks in Nigeria 3.3 Functions of banks to the economy 3.4 Organization of a Bank 3.5 Departmentalization In Banks 3.6 Corporate Governance In Banks: 3.7 The Board Of Directors 3.8 Unit Banking And Branch Banking 3.8.1 Unit Banking  3.8.2 Corresponding Banking 3.9 Funds Movements 4.0 Conclusion 5.0 Summary 6.0 Tutor Marked Assignment 7.0 Reference/Further Reading ORGANISATIONAL STRUCTURE OF CLEARING BANKS 1.0 Introduction Banks play a very important roles in the economic development of any country. As an important component of the financial system, they channel scarce resources from surplus economic units to deficit units. Thus, to a reasonable extent, they exert a lot of influence on the pattern and trend of economic development, through their lending and deposit mobilization processes. The implication of the processes are buttressed by the understanding of the followings: Bank, Banker, Clearing Banks and details of clearing banks structure in Nigeria. 2.0 OBJECTIVES At the end of the this unit the student should amongst other things be able to:  The concept of Banks and clearing Banks  Determine clearly structure of clearing Banks  Define and differentiate unit, branch and correspondent banking. 3.1 THE CONCEPT OF BANKS AND CLEARING BANKS What is bank? Many writers in this field has defined a bank as a financial institution where money and other valuables are kept for safe custody. Although a bank may be an institution physically sited in a place, to accept money and other valuables, and provide mechanisms for funds management and efficient and effective payment functions. It is also a financial institution that bridges the gap between the surplus and deficits units of the economy. However, section 41 of the Nigerian Banking act of (1969) defines a bank as “any person who carries on banking business sand includes a commercial bank, an acceptance house, discount house, financial institution and merchant bank”. What is banker? Various definitions of a banker have been provided by different people and institutions all over the world. The Bankers Book Evidence Act Of 1879 defined a banker as “any person, persons, partnership or company carrying on the business of banking and having duly made a return to the commissions of Inland Revenue, and also any savings bank certified under the Act relating to savings bank and post office saving banks”. In another development, the bills of exchange Act of 1882 defined a banker as “A body of persons whether incorporated or not who carry on the business of banking” from the above definitions, one will be made to believe that a banker’s part of business involves receiving of money for credit into a current account which the depositor might withdraw on demand. What is a clearing bank? A clearing bank is a commercial (deposit money)bank that is part of a network of banks that can cleat cheques for its clients regardless of whether or not the cheque originates from the same commercial bank. Clearing a cheque means processing it so that funds are deducted from drawer’s account and put into the payee’s account by the drawee and counterparts actions. 3.2 Structure of clearing banks in Nigeria Banks are financial intermediaries that combine human and financial resources to ensure credit creation and deposit mobilization, which is required by the wider society for even development earning of adequate returns on equity investment. The character of a bank is crucial to the discharge of the above basic roles and the characteristics interplay to portray the structural makeup of the bank. According to Cross and Hempel, the structure of a bank in a dynamic sense encompasses various characteristic that shape or determine its individuality among which are its size, the market it serves and (its) own institutional organization”. From the foregoing, the structure of banks could generally be analyzed in terms of the following characteristics: Age of the bank, Size of the bank, Ownership, Management organization, Balance sheet. The age of the Bank Bank's are often characterized by their relative age in the industries. The oldest bank in the Nigeria banking system is above 100 years, out of the 89 banks operating in the market; as at 2003. Six are pre-independence banks, seven are first decade post independence banks, another seven are second decade post independence banks, while all others are new era banks. The above structure highlights the fact that what we have today are predominately new generation banks that sprang up between 1980-2004, although evidence shows that the older banks seem to be better capitalized than the new banks. The age of the bank somehow determines the strength of a bank as measured by its assets base, the deposit base and loan and advance portfolio. It also determines the public image of the bank and the spread of the bank as measured by the number of branches in place. Size of the bank This also determines the structure of a clearing bank. Some variables such as total capitalization, spread, level of deposits and level of loans and advances determine the size of a bank. Spread of a bank is measured by the number of branches it has, thus, clearing (commercial) bank that has a lot of branches is usually considered big, this is because banks that have many branches are able to attract more deposits, thereby enhancing their loans and advances capacity. Ownership structure The pattern of ownership of a bank is crucial in determining the structure of the bank. This is because the owners influence the policy making apparatus of the bank, the character and focus of the bank. The ownership structure of banks in Nigeria before the deregulation of banking could be classified into two groups: Indigenous bank: Basically government banks or private sector funded banks. Mixed bank: These had foreign participation together with indigenous interest. Prior to the deregulation of banking, the Federal and State governments had dominated interests in most clearing (commercial) banks. It is instructive to note that the state governments privatized their interests in most of these banks, in line with the privatization programme in place. Organizational structure The level of organization put in place by a bank determines the character of the bank. The type, quality of management and the level of organization are crucial in determining the structure of a bank. The organizational hierarchy of a bank includes its shareholders, the board of directors, top management and the line staff. The balance sheet The composition of the balance sheet of a bank is an important aspect of the structure of the bank.In fact, examination of how a bank obtains funds (various types of deposits, capital funds) and how it uses the funds obtained, usually reveal significant information about management decisions and policies. This would ultimately affect the organizational structure of bank. The balance sheet totals e.g. the net assets, affects the level of organization and the types of new policies to be put in place including the quality of management. Market segment The structure of banks to a large extent is influenced by the target market the bank serves. The market for banking services is highly segmented, especially with the proliferation of banks in Nigeria. Banks are now engaging increasingly in a measure of specialization, for example, most of the banks now engage in equipment leasing and venture capital financing and even the sale of GCE forms. This also affect the structure to be put in place and conceptually, the market it served to a large extent, determines the organization and management structure. 3.3 FUNCTIONS OF BANKS TO THE ECONOMY The economy of any country is basically driven by the banking system, as it contributes to economic development thus: 1. Inculcation of banking habits to the populace.  2. Mobilization of Saving for Investment Purposes. This is achieved through keeping savings, fixed deposit and current accounts for customers. 3. Channeling resources from surplus economic units to deficit ones for investment purposes, this consists of the provision of loans and advances to the private and public sectors for various purposes and for the growth of domestic output and promotion of agricultural production, provision of infrastructure and export 4. Assists the government in the implementation of policies aimed at ensuring price stability, even development and high economic growth. 5. Provision of short-term and long term credits to the public sector. 6. They serve as channels for implementing various bilateral and multilateral trade agreements and policies. 7. They constitute avenues for the provision of various finance schemes designed to revamp the economy. 8. Provision of investment advice, ensuring proper project conception and management, investment management and other associated services. 9. Acting as agents to the government for dealing in foreign exchange and thus assisting in exchange rate stability. 10. Enhancing international trade and payment through provision of foreign exchange facilities for clients; bill for collection, foreign transfer facilities, electronic banking service etc. 11. Conduct brokerage services i.e. buying and selling of stocks and shares for their clients thereby assisting n the development of the capital market and promotion of investment culture. 12. They perform other services for customers like night safe facilities, safe keeping of valuables and provision of status reports and references for various clients. This is essentially the custodianship function. 13. Risk management: This is achieved through insurance services provide and other risk management strategies. 3.4 Organization of a Bank Bank management seeks to achieve an efficient organization to enable them achieve the basic objectives of profitability and liquidity. Two basic principles actually guide the design of the organization structure of a bank: a. The principle of unity of objective Here, an organizational structure is deemed effective if it facilitates the contribution of the various individuals in the bank to the attainment of the bank’s objectives. The basic objectives of a bank here includes, profit maximization, adequate liquidity; high growth rates of deposits, increased net assets and capital and rendering efficient services. b. The principle of efficiency: The organizational structure of a clearing bank is deemed efficient if it facilities the accomplishment of the banks objectives by the staff with minimum costs or unsought consequences. Four crucial issues affect the effective organization of a bank a. Basically, the organizational structure must reflect the bank’s objectives. The basic objective of any bank is to make profit and also enhance shareholders net worth, ensure adequate liquidity and be a good corporate citizen. Thus, the organizational structure must reflect these objectives. b. The structure must reflect the environment in which the bank is operating. c. The structure must be staffed with highly motivated and properly trained staff. d. There must exist departments in the structure of the bank. 3.5 Departmentalization in Banks Departments are basic features of all banks. A department designates a district area, division or branch of a bank over which a manager has authority for the performance of specified activities. Departments in banks are evolved along specific lines. The span of control affects the type of departmentalization. a. Departmentalization of Bank functions: This involves the grouping of departments in accordance with the functions of a bank (along functional lines). Here we have departments like;   Credit department;  Legal department;  Head office administration;  Inspection department;  Computer operations department;  Branch network departments;  Human resources /Personal department;  Corporate affairs  Real estate development  Finance/Account, training department etc b. Department by territory: Departments along geographical areas connotes the grouping of activities in a given area or territory under a manager, also called an area manager or regional manager. The major advantage here is that it ensures better face to face communication on local operations. c. Department by service/products: This strategy permits top management to delegate authority along the service or products lines of a bank. The specific services provided by banks would include the following;  Foreign exchange  Loans/advances  Foreign transfers  Commercial/market services  Corporate services. Thus, departments are often created to reflect the services/product lines provided by the bank. d. Customer Departmentalization: This involves the grouping of activities to reflect a paramount interest in customers. Customers are grouped according to their peculiar needs and sizes of operation. Examples include:  Corporate clients department   Retail banking department e. Departmentalization by services: This structure entails grouping of activities that could be carried on in other departments, to a specialized department for purposes of efficiency or control or both. Examples include:  Personnel department  Account department  Maintenance department 3.6 Corporate Governance in banks: Good corporate governance has become a major global concern for banking management. The issue of good corporate governance is important and indispensable for the realization of the basic corporate objectives of profitability and liquidity in a bank. Corporate governance became paramount as a result of the major problems encountered by banks especially as regards such issues as unethical practices, insider abuses, massive fraud, unprofessional conduct, poor quality services, bank failures etc. Corporate governance is a term that is commonly used to describe the way business firms are managed. The corporate governance code covers every aspect of the organizational setup right form how resources are generated, deployed and utilized. Good corporate governance in a bank, for instance requires judicious and prudent management of resources, the preservation of the assets of the corporate firm, maintenance of ethical and professional standards and the pursuit of corporate objectives. It seeks to ensure customer satisfaction, high employee morale and the maintenance of market discipline. It also seeks to strengthen and stabilize the bank. Corporate governance requires the cooperation of various parties including:  The board of directors  The top management  The operating managers especially the accounting staff and the internal auditors.  The external auditors who attest to the validity of the accounting records and ensures proper reporting of the bank’s activities. According to Armstrong (2003) the Kings Report or corporate governance issues in South Africa in 1994 identified seven primary characteristics of good corporate governance thus:   Discipline: This entails a commitment by top management to adhere to a code of behaviour that is universally accepted to be correct and proper.  Transparency: This is the ease with which an outsider is able to make a meaningful analysis of a company’s actions, its economic fundamentals and non-financial aspects pertinent to the success of the business.  Independence: This relates to the extent to which internal mechanisms have been put in place to minimized or avoids potential conflicts of interest that exist.  Accountability: Top management who make decisions and act on specific corporate issues must be accountable for such actions and held liable for the decisions.  Responsibility: This relate to behaviour that allows for corrective action and for penalizing mismanagement. For example, the board must act responsibly towards all stakeholders of the firm.  Fairness: The management must acknowledge and respect the right of various groups (minority interests and dominant shareholders) in the firm. The management must seek to preserve and protect these interests.  Social responsibility: The corporate firm should be aware of and respond to social issues and ethical standards. Corporate management must realize that it owes society a duty to ensure the continuity of the firm, the preservation of societal welfare and show a high degree of social responsibility and from the perspective above, good corporate governance entail efficient management of resources and provision of responsible leadership. It requires the provision of timely and quality information and the enforcement of sanctions for branches in ethical standards, regulations and codes of conduct. 3.7 THE BOARD OF DIRECTORS The board of directors of a bank is an important organ responsible for policy making and giving general directions to the bank (management and staff). Specifically, they are elected by shareholders for a fixed term, and may be executives or non-executive. The executive directors are part of general executive management, while the non-executive directors do not participate in day to day management of the bank.  A. FUNCTIONS OF THE BOARD OF DIRECTORS: The functions of the board of directors of a bank includes:  General policy formulation for the bank.  Advice and assistance to top management.  Approval of large contracts.  Final approval of large loans and risk exposures.  Relating with government and regulatory agencies.  Constituting the adult committee of the bank. B. QUALIFICATIONS: The Companies and Allied Matters Act 1990 specifies the qualifications for being a directors in any company in Nigeria. These also apply to bank directors. Specifically, a director must be some body of a sound mind, must not have been convicted of a criminal offence, must not be a discharged bankrupt, must not have attained an age above seventy, must have at certain basic a qualification etc. There are also restrictive clauses imposed on bank directors by Section 18.2 of BOFID 1991 as amended. C. TENURE OF DIRECTORS This is in accordance with the Articles and memorandum of the bank or as specified in the companies Act. However, Directors usually retire by rotation on a yearly basis. This allows for continuity in the policy-making framework of banks. 3.8 UNIT BANKING AND BRANCH BANKING The Nigeria banking system could be said to be a mixture of the branch banking system and the unit banking system. Branch banking connotes a system whereby a single banking institution conducts operation at two or more locations. These branches are controlled from one central head office by the same top management and board of directors. Thus, the operational policies as it relates to the branches are virtually the same, although the character of the individual branch management may be different. Banking in Nigerian is mainly conducted along the branch banking system. All the banks have a central head office that controls the branches, which are scattered across the whole country. These branches have some operational procedures, perform virtually the same functions although in varying degrees, while certain strategic issues like determination of the primary and secondary reserves of the banks are performed by the head office of the bank. The branches are essentially retail outlets that market the financial services offered by the banks. It is interesting to note that as at December 1994, there were 65 commercial banks operating in Nigeria with a total of 2257 branches (NDIC Report: 1994). This position did not change significantly until the liquidation of 26 banks (Commercial and merchant) in 11998. By 2002, the banking system had 90 banks 2800 branches across the country. 3.8.1 UNIT BANKING Unit banking is a situation where a single office banking institution provides banking services. The system thrives in economies where communities are homogenous and small with business, especially farming setup with adequate transportation and communication facilities. Unit banking has been sustained to a reasonable extent in the United States of America Banking system. A variant of unit banking that operate in Nigeria is the community banking system. A community banking is essentially a unit banking owed by a single community or group of communities and has basic functions of providing banking services for the community at the grass root level. Generally, branch banking enjoy greater operational efficiency than unit banking. Evidence show that branch banking enables banks to grow larger and to achieve economies of scale. This is because they are able to reduce long run average costs though labour specialization and portfolio diversification, especially with regards to the income earning assets. There is also the issue of allocation efficiency which is not the case in unit banking. However, unit banking leads to more personalized banking. Decision making is also faster and the response to the credit needs of the communities is quicker, although the volume may be very much limited. 3.8.2 CORRESPONDENT BANKING Corresponding banking is an inter-banking relationship that enables banks support one another relative to their banking transactions, such as clearing account arrangements, international money transfers, trade financing, local currency exchange transactions and all other financial services associated with the movement of funds across national borders and sometimes even within; when there is an arrangement whereby smaller banks in a country carry deposits with larger banks in the same country in exchange for the performance of various services. The basic reason for this arrangement is that the small banks may find it very expensive to provide particular services and often times, it is virtually impossible to provide the service by the smaller bank hence the recourse to correspondent banking. Generally, the advents of electronic banking and faster telecommunication facilities and fund transmission facilities e.g. Society for Worldwide Interbank Financial Telecommunications (SWIFT) and INTERNET have greatly given impetus to correspondent banking. The increased need for better liquidity and asset management practices, have also given impetus to correspondent banking. In this case, banks have increasingly resorted to interbank fund movements and fund sourcing. Correspondent banking has also expanded to include inter-bank arrangements relating to non-fund based activities like guarantees and documentary credits. Correspondent banking to a large extent influences the movement of funds between countries especially with regards to international trade relations and international fund movements. This scenario is more prevalent when trade and exchange relations exist between these countries. Nigeria maintains trading relations with various countries, especially European Countries and USA, thus frequent fund movement between the financial institutions in Nigeria and those of other countries encouraged the development of correspondent banking in Nigeria. Historically, correspondent banking started in Nigeria with the inter-bank relationships between Standard Bank of Nigeria which started operations in 1894 and Standard Chartered Bank of London. This facilitated trading relationships between colonial Nigeria and metropolitan London. With the emergence of more banks in Nigeria and the increased level of economic development and international trade relations, correspondent banking developed further. Correspondent banking takes the form of an inter-bank relationship between two banks in different countries whereby special arrangements they undertake banking transactions such as clearing arrangements, international money transfers, trade financing and refinancing, local currency exchange transactions and all other financial services associated with the movement of funds across national borders. The import of this is that correspondent banking takes place between one bank in a particular country and another bank in another country for the purpose of facilitating the movement of funds. Correspondent banking also connote an arrangement that exist between bank-based on the practice of smaller banks carrying deposits with large banks in exchange for performance of various services, Reeds et al (1980). This point of view posits further that there are two basic reasons that support the existence of correspondent banking:  Banks find it impossible in many instances to provide certain services that they consider important.  Where the services are provided, banks find them quite expensive. Correspondent banking is conceptually different from offshore banking. According to Agene (1995), offshore banking entails the operation in a foreign country by a financial institution or branch office which has little connection with the foreign country’s financial system. THE NEEDS FOR CORRESPONDENT BANKING As noted earlier, correspondent banking facilitates fund movements across national boundaries. In addition, it also serves the following purposes:  Assists in foreign exchange dealing. Here, a large volume of fund movements are inter- bank arrangements.  Assists in financial advisory service  Assists in collections of cheques, drafts, letters of credit and cash item to beneficiaries. It also assists in consortium lending and offshore banking.  Serves as avenues for keeping bank assets and liabilities. Banks are thus able to keep track of fund movements and transaction with various other units  Assists in securities processing. Here, correspondent banking assists in transfer and settlements of transactions and dealing in securities. Banks in Nigeria have increasingly used correspondent banking over the years for various purposes above.  Developments that sustained the growth of correspondent banking in Nigeria: 1. The electronic revolution in banking worldwide. This encouraged the development of Electronic Funds Transfer System (EFT), the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT). All these instruments facilitate fund movements. 2. The expansion in world trade and also the expansion in monetary relation and exchange mechanism between the developed countries and Nigeria. 3. The increased capital flows and capital movements between Nigeria and its trading partners. 4. The increase monetization of the Nigeria economy, the expansion of the financial infrastructure following economic deregulation and reforms in the Nigerian financial system. 5. The sophistication, expansion and developments in the financial and capital markets of the developed countries. 6. The emergence of the euro as the currency of the European Union. Generally, positive developments in the Nigeria economy especially in the area of economic growth, in exports and international trade, the harnessing and rationalization of the national resource profile, the reduction of the external debt burden and stabilizing the banking industry ultimately encourage fund movements and thus the level of correspondent banking through enhanced inter-bank cooperation. We shall highlight a few recent developments that have constrained inter-bank cooperation and thus correspondent banking. First is the high level of distressed and failed banks in Nigeria, which have tended to erode confidence of the investing public and the international community in the Nigerian banking system. This has negatively constrained correspondent banking relationships. Secondly, the high levels of external debt burden in Nigeria arising from external debt overhang affects capital flows and exchange relations between Nigeria and its trading partners and thus inter-bank cooperation. The high level of capital flight from Nigeria and net resource out flows negatively constrain correspondent banking. On the international scene, the high level of trade restrictions between the developed countries and the developing countries, the evolvement of trade blocs have tended to limit fund movements and thus correspondent banking. 3.9 FUNDS MOVEMENTS We had earlier noted that correspondent banking greatly assists fund movements. Three basic types of fund transmission modes are used in correspondent banking. These include:  Mail and Telegraphic transfers (cable transfers)  Electronic funds transfer  SWIFT a. MAIL AND TELEGRAPHIC TRANSFERS Fund transmission by cable or telex takes place in domestic banking through a network of branches and then a foreign correspondent bank in the case of international banking, trade and exchange / settlements. A telegraphic transfer differs from mail transfer in two ways. First, the message in the case of telegraphic transfer is transmitted by means of cable or telex instead of air mail and is thus faster but costs more. Secondly, the means of authentication is by a test key instead of signature as in the case of mail transfer. Mail transfer on the other hand could be described as an authenticated order in writing addressed by one bank to another, stating the bank to which it is addressed to pay the sum certain in money to or on application by, a specified person or beneficiary. The method of transmitting the message is by airmail, in the case of mail transfer. In the two types of fund transmission, an authenticated payment instruction to the correspondent bank indicating reimbursement details is usually sent. The correspondent bank executes the remittance instructions and obtains reimbursement as indicated in the remittance letter, if this is applicable. b. ELECTRONIC FUNDS TRANSFER/ELECTRONIC BANKING This method of fund transmission has been facilitated by the introduction of computer technology and electronic banking. The EFT seeks to remove the construction of time, distance, volume to the system of fund transfer systems. This system involves installing electronic terminals at banks. These terminals read the information imprinted magnetically on special cards and these are sent instantaneously over telephones to other computer networks where the instructions are decoded and executed. This method of transfer is largely underdeveloped in Nigeria, although a few banks have ventured into providing electronic banking. c. SOCIETY FOR WORLDWIDE INTER-BANK FINANCIAL TELECOMMUNICATIONS (SWIFT) SWIFT play a key role in fund transfer and fund movement among different countries and member banks of the system all over the world. SWIFT is the operating organization of a computer network providing a communication service for the transmission of international banking messages. The system is a cooperative society registered in Brussels under Belgian law and is operated by member banks. The development and operating costs are taken care of through charges to originators of the messages transmitted. In the advanced market economies, the ordinary SWIFT messages have gradually replaced the mail transfer methods, while the argent SWIFT message has replaced the cable or telex transfers. According to Agene (1995), SWIFT was established to provide a means by which banks could give instructions for financial transactions among themselves using a secure, standardized, audible, controllable and rapid system. The SWIFT system has aided fund movement and is a major recent advancement in international payments system. 4.0 Conclusion Banks are institutions licensed to carry out banking functions, among which is to open accounts for customers to make deposits, safeguard valuables and provide credits. However in order to payment for transactions simple and efficient, they embark upon intermediary and other effective services to the public. In the course of the performance of their function the need to interact among banks, especially on behalf of their customers becomes imperative, leading them to working out an arrange for the settlement of cheques differentials in value among banks giving the license to Participate in this process called clearing. Clearing Banks are actually licensed banks, as well as banks approved by CBN to go to the clearing house to facilitate the matching and settlement of accounts via issued cheques of the approved banks. The banks that are not licensed to participate in the clearing house do take part indirectly by having any of the participating banks as their correspondent banks. 5.0. Summary Clearing banks are basically banks that have the approval to be a part of the CBN cheque clearing and matching process. They maybe Banks operating the unit, branch or correspondent banking principles. In all the function of clearing allows the payment mechanism to flow freely and clearly, so that errors can be detected and corrected when noticed, thereby building trust and confidence; which is the cornerstone of banking. 6.0 Tutor Marked Assignment 1. The structure of a bank in a dynamic sense encompasses various characteristics that shape or determine its individuality. Evaluate this statement and comment on the structure of clearing banks in Nigeria. 2. Design an appropriate structure for a small bank specifying the lines of communication and chain of command. 3. Examine the impacts of universal banking on the marketing of financial services in Nigeria. 4. Differentiate between unit banking and branch banking. What factors encourage the existence of unit banks 5. Write short notes on, bank, banker and clearing banks. 7.0 References Jombo, O.C. (2003). Elements of Banking. Owerri: Barloz Publishers Nzotta, S.M. (2004). Money, Banking and Finance: Theory and Practice. Owerri: Hudson- Jude Publishers Oleka, C.D. (2006). Fundamentals of Money Banking and Financial Markets. Enugu:Academic publishing Company. Otu, P.A. (2001). ; in Mbat, D. O. (ED). Topical Issues in Finance.Uyo: Domes Associates Publishers.