CHAPTER ONE
1.1 INTRODUCTION
Co-operative financing
agencies are not different from other types of business with respect to
efficient management of other funds they requires its used fund very carefully
and judiciously because their source of funds tend to be limited.
The peculiar limitation imposed by
co-operative principles mark it very difficult for cooperative to obtain
sufficient fund from outside. E.g. That interest payment must not exceed a
certain percentage.
As a catalyst cooperative financing
agency pull together the resources of entire cooperative credit union and by so
doing make it possible for credit union to help each other there by bridging
the gap between rich and poor cooperative credit union. The cooperative credit
concept is widely recognized on the only means to successful improved the
standard of living.
Therefore, through the sprit of
cooperative mutual self help the rich credit union like to tend some of their
individual financial strengths to the poor credit union in the order to effect
imposed credit equipment can be financial strength and mutual protection that
unit breads.
When a credit union invest part of the
member total serving into the apex through the financing programme. It lend its
leading power to another by making money available for the credit needs of its
members and to accord financial relief in the desire of the world.
The desire for individual to develop
them
1.2 AIMS AND OBJECTIVE OF THE STUDY
The study aims at
highlight the important of the financial management in an organization using
Kwara state cooperative financial agency as a case study.
THE STUDY FOCUSED ON: The
short out the main source of finance to the agency as well as the management of
funds the short out areas of problem in the financing agency to suggest and
recommend solution to the management of Kwara state co-operative financing
agency limited the existed of sound financial management for co-operatives.
1.3 STATEMENT OF THE PROBLEM
On of the most
important problem of the organization is lack of adequate finance to carry out
their function successfully.
It is believed that availability of fund
can yield so good result and contributed to stability of an organization also
lack of financial management in an organization also lack of enough manpower
can leads to laxity in all areas of financial management in an organization
frustration of these desire of financial management could lead to collapse of
an organization, if such organization is to survive any economic crisis.
In the light of above this research
intend to find out whether this good and strong financial management which will
be supported with interview and it. There are lanuties in any areas, the
research intend to sort out what measure to take.
Economically and the desire of
cooperative financing agency to become strengthen and provide better services
to their member themselves will be used achieved through efficient financial
management.
There is better place where members
saving could be profitability invested than member them selves. Therefore
financial agency, if they are to be used most profitability should and an a
matter of priority be made to circulated with financial agency itself and be
fully civilized to up like living standard of the members to whom there saving
belong.
In general no outsider will want to
invest his money in a cooperative member. Often consider leaving only a minimum
amount in cooperative business cenly to invest the rest of the money in other
types of business, which have no in dividend restrictions.
The phenomenon is term capital flight
and emphasized the need for a very careful and efficient management of means
fund available to cooperative financing agencies.
1.4 LIMITATION OF THE STUDY
There are various problem that the researcher
encounter during. The writing of the project, the major areas are during the
time of the 2009 annual report of the organization was available for me. I laid
my hand on the 2009 annual report.
a.
Source
of information: Before any organization is
undertaken any information it must be communicated to all who may be affected
by the organization their willing cooperation should be solicited and obtained
through education as to the value of the organization. The need of organization
has to be emphasized failure to do this could lead to organization affected.
b.
Financial
problem: if an organization encounter financial
problem i.e. affect an employees skill and productivity if it is a piece value
job. The employee stand to sustain financial loss view technology is know to
have rendered certain skill obsolete. The introduction of data processing
machine and mini computer has reduce the number of accountant heed in large
corporation
c.
Time:
Timing in an organization its success of failure. There are times when people
are mentally prepared. Also coat they will rationalize in an organization that
is losing money or where there is constant loss in production due to matching
breakdown, accident or reject.
1.5 SCOPE OF THE STUDY
The scope of this study
implied to fish out the important of financial management in a self-help
financial institution.
The particular apex organization
detailed as a case study of Kwara state co-operative financial agency limited
in federal ministry of work and housing .
Kwara state, from the time establishment at 31st December 2001.
The duties and responsibility of the
state and management board are steel seen as important is the development
co-operative and hence has been in co-operative into these study.
1.6 SIGNIFICANT OF STUDY
The research interested
in investigation the problem and what will be the contribution to knowledge of
the study if successfully carried out? The researcher should try to justify the
attempt to solve the problem in term of time cost and energy. He should be able
to state the benefit or importance of the researcher is the researcher
beneficial to the nation. Employer school, other researcher or the society in
general or the industry an which the researcher is being done.
Any research work that is deficient in
terms of benefits to humanity or to the user has left out a significant portion
of the study.
As the topic implied on completion of
the research work, the outcome will add to the existing literature on-banking
and guide for future researcher on the topic. It will also spelt out the
importance of e-banking from services delivery and development to banking
industry, thereby leading to prompt service delivery to the customer.
1.7 STATEMENT OF THE HYPOTHESIS
Hypothesis is the statement
of relationship between variables. In the problem analysis the researcher
described or refers to some of the variable that should be investigated because
either the relationship between them is not well know often or always has
certain consequences. The variables may have some behaviour or characteristics,
which are not clear to their investigator.
The general hypothesis to be tested in
study is.
Ho: e-banking has no positive impact on banks
Hi:
e-banking has positive impact on banks.
1.8 RESEARCH QUESTIONS
Nworgu (1991) described
research question as question posed by the researchers in which answer would be
lead to the solution of the problem while in the world Asika (1991) research
question serves as a guide to the researcher in his search for answer to the
problem being studies. Hence, it should be general enough to give rise to other
loser question but should still focus on the major problem of the study.
Example
of research question are:
i.
What is the
relationship between leadership style and job performance.
ii.
Why do must male
mangers prefer female secretaries
iii.
What is relationship
between budget and inflationary trend?
CHARACTERISTICS
OF USEABLE RESEARCH QUESTION
1.
A good research
question must cover as many research questions as would be enough for the major
issues in the project work. Meanwhile, there is “no rule stipulates the number
of questions to be formulated, however the research should not be too small as
not include important aspect of the problem, to too large as to result in an
unmanageable of research question.
2.
Research question must
be direct and should focus attention on the major issue of the study.
3.
The research question
must be related to the problem being investigated and respect important and
critical issue of the study.
4.
Research question
should be formulated in the clear and unambiguous language that could be
answered research should try as much as possible to avoid formulation research
question in such a way that it will require yes or No.