AN EVALUATION OF THE EFFECTIVENESS OF FINANCIAL PLANNING AND CONTROL IN THE BANKING SECTOR


LITERATURE REVIEW

The main aim and purpose of financial planning and control in any organization is to secure adequate means of financing and provide a complete method of procedure that will be adaptable for the organization in ensuring as far as possible, accuracy and reliability of accounting records and adherence to management and administrative policies. It is therefore of immense importance for the management of an organization tom study, invest and lay sound financial plan and enforce a proper central system.

No matter the size, ownership status of a bank or its physical well being, they key or major determinant of its success or survival is the financial plan and control of the organization.

The ability of an organization to raise funds to meet its capital and daily financial needs and the cost to raise such funds are governed by the nature of financial plan for its set up, which stand the risk of loosing profit when good financial plans are secured, the next important thing to do is to control the finance itself. This control aspect of financial ensures that funds raised are not misappropriated or fraudulently used. In this chapter, the writer attempts to analyze the methods used as first bank of Nigeria Plc in their budgeting procedures, process and implementation also the ratio analysis.

In planning, consideration has to be given to the form of control that should exercised to ensure that the plan attain the objective of the resource being carried out.

Financial is the most vital part of the process of banking, the objective of the study is primarily aiming at ascertaining the effectiveness of the financial management, planning and control in banking sector or otherwise.

The primary aim is to ascertain the effectiveness of the banks budgetary control system to be general readers, understand the need for effective financial planning and control and its impact to the banking sector.

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