CHAPTER ONE

RESEARCH DESIGN

1.1 INTRODUCTION

Banks are germane to economic development through the financial

services they provide. Their intimidation role can be said to be a catalyst for
economic growth. The efficient and effective performance of the banking
industry overtime is an index of financial stability in any nation. The extent to
which a bank extends credit to the public for productive activities accelerates
the pace of a nations economic growth and its long-term sustainability.

The last decade has seen dramatic losses in the banking industry. Firms
that have been performing well suddenly announced large losses due to credit
exposures that may or may not have been assumed to hedge balance sheet
risk. In response to this, commercial bank has almost universally embarked
upon upgrading of their management and control system.

The security contains in the banks principal activities i.e those

involving its own balance sheet and its basic business of lending and
borrowing, are not all born by the bank itself. In many instances the institution
will eliminate or mitigate the financial risk associated with a transaction by
proper business practices. In other, it will shift the risk to other parties though
combination of pricing and product designed.

Security assessment and management are increasingly recognized as

part of business practice, with an expectation that the assessment and
management of security will form part of everyday business operation.

1
 Bank rise funds by collecting deposit from business and individuals.
Business and the government through buying bonds, thus, the primary assets
of banks are loans and bonds while primary liabilities are made of deposit. A
bank balance sheet has loans representing the majority of banks assets, but
the loan come with security if the banks makes bad loans to firm or consumer
for example, the bank will be in crisis if those loans are not paid.

Commitment of prudent lending is an important and current issue of

decision in global banking system today. Baking prudence and efficiency to
manage their risk in different business cycle and environment would help to
alleviate crisis and losses. The effective management of credit security is an
essential component of a comprehensive technique to security management
and critical to the success of all banking industries.

The banking industry recognizes that an institution does not need to

engage in business in a manner that necessarily impose security on it, nor
should it absorb security that can be efficiently transferred other participant
rather, it should only manage risk at the firm level that are most efficiently
manage by the market itself on their own portfolios. In short, it should accept
only those securities that are uniquely a part of the banks array of services
elsewhere. It has been argued that risk facing institution can be segmented
into three separable types.

The Nigerian banking industry has been strained by the determination

quality of its credit assets as a result of the significant fall in equity market
indices, global oil prices and sudden depreciation of the naira against global
currencies, the poor quality of the banks loan asset hindered banks to extend
more credit to the domestic economic, thereby adversely affecting economic

2
 performance. This prompted the federal government of Nigeria though the
instrumentality of the act of the national assembly to establish the asset
management cooperation of Nigeria in July, 2010 to provide a lasting solution
to the recurring problem of non-performing loans to Ahmad and Arriff, most
banks in economic such as Thailand, Indonesia, Malaysia, Japan and Mexico
experienced high non-performing loans and significant increase in credit risk
during financing and banking crisis, which result in the downfall of several
banks in Indonesia and Thailand.

1.2 STATEMENT OF THE PROBLEM

There are many problems associated with security management in

banks today. As we all know the fundamental business of a bank is to
mobilized deposit and lend the fund to those who can repay (I.e provision of
credit facilities) the very function has been blamed for distress of several
banks in Nigeria in the past and advances granted to customers are not repaid,
consequently running the bank into insolvency and eventually liquidating.

Proper security management mechanism and dynamics is the solution

than prevent those problems while ensuring efficient credit management in
Nigeria banks.

This research credit looks into the problem associated with bank credits
and seeks to ascertain the impact of proper security management on banks
credit management.

3
1.3 OBJECTIVE OF THE STUDY

The major objective of the study is to ascertain the impact of the

security management on bank credit management with special reference to
GTBank.

1. To examine how security management affect credit management in the

banking industry.
2. To identify, present and discuss security management factor which may affect
the development of bank credit management.
3. To understand the relevance of identified component and how they can help
determine the performance of Nigeria bank.
1.4 SCOPE OF THE STUDY

This research shall cover the impacts of security management on bank

credit management using GTBank, Jos branch as a case study.

This study will cover the extent to which security management

enhances the performance of the Nigeria banking between the periods of
2013-2015.

1.5 SIGNIFICANCE OF THE STUDY

The significance of the study will be to make efficient reviews and analytical
demonstration and also add to the general body of knowledge, enlighten the banks
on the impact of security management and banks performance.

This study shall be of great benefit through the following:

i. It will serve useful guide to banks on how to go about setting strategies for security
management.
ii. The study will serve as reference point for future research.

4
iii. This study will help provide analysis of information on security management
to bank and other financial institutions through the data collected from both
secondary and primary source.
iv. Information gathered from this study will also help bank managers in decision
making regarding security management.
1.6 LIMITATION OF THE STUDY

The researcher has for at the cause of this study constrained by financial
incapacitation that leads him to narrowing down the scope of the work to
concentrate on few sample size of the entire staff of GTBank, Jos branch.

Another limitation was the inability to obtained full questionnaires on time due
to the hectic nature of work of the respondents. Thus they had, had not much on the
study.

1.7 HISTORICAL BACKGROUND OF THE CASE STUDY

Guarantee Trust Bank Plc was incorporated as a limited liability

company licensed to provide commercial and other banking services to
Nigeria public in 1990 and commenced operation in February 1991.

The September 1996, Guarantee Trust Bank Plc became a publicity

quoted company and won the Nigeria stock exchange presidents merit award
in February 2002. The bank was granted a universal banking license and later
appointed a settlement bank by the central bank of Nigeria (CBN) in 2003

Guarantee Trust Bank undertook it second share offering in 2004 and

rose over N11 billion from Nigeria investors to expand it operation.

On July 26, 2007 the bank was a very first sub-Saharan and first
Nigeria joined stock company listed on London stock exchange and Deustsche

5
 Borse. The IPO raised U$$750,000 000. In the same year, the successfully
placed Nigerias first private Eurobond issue on the international market.

The GTBank USD 500, 000 000, Eurobond was the first ever
benchmark Eurobond issue by a Nigerian corporate and the second Eurobond
programme by GTBank in the last 5years.

True long term debts of Guarantee Trust Bank Plc are rated BB by
standard & and poors and AA by Fitch Ratings, which are the highest rating
for a Nigeria bank. They introduces online banking and SMS banking in
Nigeria and a naira dominated master card as well as the Platinum and world
Signia Cards and with GTB-no-Wheels, Mobile branch.

On March 12, 2008, GTB was given a banking license for the United
Kingdom by the Financial Services Authority. GTB is a partner of Eko
Atlantic City a new made Island in the Atlantic Ocean, Adjacent to Victoria
Island Lagos, it will be the home of new financial Ostrich. The building of
Eko Atlantic City started in 2009 and expected to be finished in 2006.

To the banks 20th Anniversary a set of postage stamps were launched by

the Nigerian postal service. This was the first time in Nigeria that corporate
organization was honored in such a way. In 20014 the bank became the
biggest in Nigeria by market Capitalization, 2010 it was on the place behind.

1.8 DEFINITION OF TERMS

6
Security: is a financial instrument that represents an ownership position in a
publicity traded corporation (stock) a creditor relationship with government
body a corporation (bond) or right to ownership as represented by option.

Security management: is the identification of organization assets (including

information assets) followed by the development documentation and
implementation of policies and procedures for protecting these assets.

Bank: an establishment which deals in money receiving on deposit from

customers, honoring customers drawing against such deposit on demand,
collection of cheque from customer and lending surplus deposit.

Credit management: this is regulation controlling of credit which involves

the creation extension and collection of debt.

Management: it is the prudent of bank assets and liabilities in order to seek

some option combination of income.

Banking: the business activity of accepting and safeguarding money owned

by other individuals and entities, and lending out this money in order to earn
profit.

Banking performance: it is the transaction executed by a bank in its day to

day business, such as providing loans, mortgages and investment depending
on the focus and size of bank.

REFERENCES
7
Eguziokpe .E.E (2008), Research Methodology, a Practical Treatise for Student 2 nd
Ed. Jos Quality Function Publishers.

End of year December 2014 Report and Account of GTB

Kithinji, A.M (2010) Security Management and Profitability of Commercial Banks

in Kenya School of Business University of Nairobi, Nairobi.

Pandey, I.M (1987) Financial Management, New Printer-Dia Publishing Ltd, India

CHAPTER TWO
8
 LITERATURE REVIEW

2.0 INTRODUCTION

In this chapter, various literatures regarding the contribution of

security management strategies on bank and other financial institutions
operation.

Marshal (2010), pointed out that the futures of banking will be

undoubtedly rest on security management dynamics. He clearly explained that
only these banks have efficient security management system will survive in
market in the long run, and that the effective management of risk is a critical
component of comprehensive security management essential for long term
success of a banking institution.

This study is about security management practices of commercial banks in

Bangladesh, this study examines types of security facing a bank, procedure
and techniques used to minimize the security.

The study reveals that credit security, market security and operational
security are the major security to the banker which is managed into three
layers of management system. The board of directors performs the
responsibility of main security oversight, the executive committee monitors
risk and the audit committee oversees all the activities of banking operations.
It is found that internal rating system and risk adjusted rate of return on capital
are relatively more important technique used by banks.

Alam and Maswajjaman (2011), evaluated the impact of security

management on the profitability of Nigerian banks. The findings revealed that
security management has a significant impact on the profitability of Nigerian

9
banks. It concluded that banks profitability is inversely influenced by the
levels of loans and advances, non perforating loans and deposits thereby
exposing them to great security of liquidity and distress.

The concept of security management in banks highlighted the

objectives and factors that determine the direction of banks policies on
security management, the challenges related to internal and external factors in
security management are also highlighted. They concluded that success of
security management require maintenance of proper credit environment,
security strategy and policies. Thus the ultimate aim should be protect and
improve the loan quality. (Maninarayanappa and Nirmala 2004).

Security management in banks, they examine risk identification

security, security monitoring and security control, and security audit, as bank
consideration for security management, the author concluded that proper
credit management architecture, policies and framework of security
management, security rating system, monitoring and control contributes in
success of security management system (Baqchi 2003)

2.1 MEANING OF SECURITY

A security is an interest or a right in properly given to the creditors to

convert it into cash in case the debtor fails to meet the principal and interest
on loan. (Nouman Umar, 2015).

A security is a tradable financial asset (Wikipedia, 2016).

In the above stated definitions one can posit that security means: a financial
instrument that represents an ownership position in a publicity-traded

10
operation (stock) or relationship with government or a cooperation (bond) or
rights to ownership as represented by an option.

Securities are form of ownership that are traded on a secondary

market, securities allow you to own the underlying asset without taking
possession, for this reason, securities are readily traded that also called being
very liquid. They are easily to price, and traders must be licensed to buy and
sell securities to assure they are trained to follow the laws set by the Securities
and Exchange Commission (SEC) (Incimberly Amadeo).

According to investopedia.com, a security is a financial instrument

that represents an ownership position in a publicly traded cooperation (Stock),
a creditor relationship with government body or cooperation (Bond), or right
to ownership as represented by an option. A security is a fungible, negotiable
financial instrument that represents some type of financial value. The
company or entity that issues the security is known as the issuer.

A simple definition of security is any proof of ownership or debt that

has been assigned a value and may be sold (today, evidence of ownership is
likely to be computer file, while once it was a written piece of paper) for the
holder, a security represents an investment as an owner, creditor or rights to
ownership to which the person hopes to gain profit. Examples are stocks,
bonds and options.

According to securities law of 1993, securities are documents that

money represents an interest or right in something else they are not consumed
or used in the same way as traditional consumer goods, government
regulations of protecting consumers from dangerous articles misleading
advertising, or illegal pricing practices. Security laws, on the other hand,

11
 attempt to ensure that investors have an informed, accurate idea of the rate of
interest they are purchasing and its value.

2.2 CLASSIFICATION OF SECURITY MANAGEMENT

According to Raghuan, conceptually, security facilities may be

grouped into many ways:

a) the sector of the economic affected e.g Agriculture, mining, manufacturing

and construction.
b) Security required e.g documentary bills and credit notes, real estate plant
securities or personal guarantee.
c) Maturity of the facility e.g call money short-term and long-term facilities.
d) Method of repayment e.g installment and single payment.
e) Category of borrowers e.g government institutions, business enterprises and
individuals.

When considering repayment credit management may be segregated

into absolute and contingent obligations-Absolute obligations is by the
conditions and terms of payment. There is a definite undertaking that the
borrowing customer will repay the debt. Absolute committeemen include
promissory notes, overdraft loans and advances and acceptance credits.

On the other hand, contingent obligations are obligations which the

customer will fulfill if certain event occurs or fail to occur at a point in time
the contingent obligation becomes absolute. Example of contingent obligation
includes commercial letters of credit, bankers guaranties, and bonds such as
customs, performance, advance payment and contingent guarantees. The
classification of bank credit into absolute and contingent obligation is a
special one since a commercial transaction involves the sales of goods and

12
 services. Contingent obligations like commercial letter of securities are
expected to be transformed into absolute obligations.

The prudential guidance for banks stipulates the classification of bank

credit into two broad classes performing and non-performing categories, a
security facility is said to be performing if payment of both principal and
interest are up to date in accordance with agreed repayment terms. Non-
performing loans is a loan on which the debtor is not making interest payment
or repaying any principle in accordance with the agreed repayment terms. The
guidelines further provides for the segregation of non-performing assets in
order to gauge the financial condition of licensed banks. The central bank of
Nigeria classifies bank securities in to four types namely: substandard,
doubtful, lost and performing.

The first category requires some explanation, substandard security

facilities are those which have not developed signs of deter ration but
nevertheless they requires close monitoring in order to ensure good
performance doubtful commitments have a fifty percent chance of recovery.

Clearly, bank security may be classified or grouped in many ways

depending on the end use of the data obtained. There are important reasons for
classifying bank security and these include:

i. To arrive at figure for the provision of bad and doubtful debts this must be
deducted from the aggregate loan and advance of the bank to obtain a
reasonable assessment of the credit portfolio.
ii. To gauge the financial condition of individual banks this is done by
segregating bank security into performing.
iii. To identify diligent or problem credits so that actions can be taken early to
remedy the situation. (Raghavan 2009)
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 2.3 MANAGEMENT OF DEBTORS

According to Agene (1995) management of debtors is concerned with

the control of credit as it is one thing to grant credit to customer and another to
obtain payment, as debtors from part of the capital of a business. It is essential
that they can be converted into inward cash flow as soon as possible in order
to facilitate meeting current liabilities.

It is therefore important to appreciate that the longer a debt remain

outstanding, the more remote is the possibility of collecting it. Outstanding
debtors may create the need for bank loan or overdraft attracting interest
charges are as such resulting profits are reduce, profit are also further reduced
if the outstanding debts have to be written off as irrecoverable.

Debt management is a problem of banking profitability and liquidity, the

longer the credit term, the greater the level of debt and the greater the possible
strain on the companys liquidity. The granting often requires number of
questions such as:

To whom should credit be extended?

For how long should the credit be?
What should be done about defaulting debtors?

2.4 FORMULATING A POLICY FOR CREDIT CONTROL

In a publication by the institute of chartered accountant of Nigeria

value for money based internal audit and control techniques (1988), several
factors should be considered by management when a policy of credit is
formulated, these include:

a. Debt collection policy

b. Credit control policy

14
 DEBT COLLECTION POLICY

The overall collection policy of the firm should be that the

administrative costs and other costs incurred in debt collection should not
exceed the benefits received from incurring those debts. Some extra spending
on debt collection procedure might.

Reduce bad debt losses, and

Reduce the average collection period and therefore the cost of the investment
in debtors beyond a certain level of spending, however, additional
expenditures on debt collection would not have a sufficiently great effect on
reducing losses or on the average collection period to justify the extra
administrative costs.

CREDIT CONTROL INDIVIDUAL ACCOUNTS

Credit control involves the initial investment of potential credit

customer and the continuing controls of outstanding accounts, the main point
to note are:

New customers should give two good references including one from bank
before being granted credit terms.
New customer credit limit should be fixed at a low level and only increased if
his repayment record subsequently warrants it.
For large value customers, a file should be maintained of any available
financial information about the customer the file should be review regularly.
Aged list of debt should be produced and received at regular interval.

2.4.1 CREDIT POLICY DIRECTIVES BY CENTRAL BANK OF

NIGERIA

15
 The 1997 central bank of Nigeria monetary policy described credit
policy as an instruction used by the monetary authorities to credit to preferred
or less preferred sectors of the economic taking into account acceptable level
in other relevant economic variable such as domestic prices, reserve and
money supply.

As a supplement of the federal government annual budget speech

credit guidelines in the forum of monetary circulatory have been issued by the
central bank of Nigeria since 1969 as directives to the banking sector of the
economic. The declared objectives of these guidelines are:

i. Promoting accelerated economic development of ratio by regulating the flow

of credit to the favored sectors
ii. Promoting orderly growth of the financial market and combating inflation
through the regulation of interest rates.
iii. Maintain a healthy balance of payment and relative price stability the
introduction of exchange control and import restriction.

In addition, the monetary authorities prescribe sectoral and sub-sectoral

allocation of credit in such a way that available banking loans and advances are
allocated to the borrowing sector in accordance with the desired objectives of the
policy.

2.5 SECURITY MANAGEMENT STRATEGIES OF COMMERCIAL

BANKS

The security management strategies are measures employed by

commercial banks to avoid or minimize the adverse effect of the credit
security. A sound security management framework is crucial for bank so as to
enhance profitability guarantee survival. According to Lendengreen 1987, the

16
 key principle in security management processes are sequenced as follows:
establishment of a clear structure, allocation of responsibilities should be
clearly communicated and accountability assigned. The strategies for lending
credit security include but not limited to these.

i. Credit derivatives: this provide bank with an approach which does not
requires them to adjust their loan portfolio. Security derivatives provides
banks with a new source of five income and offer banks the opportunity to
reduce their regulatory capital(Shao and Veager, 2007)

The commonest type of security derivatives is default swap whereby a sever

agrees to shift the credit security of loan to the potential buyers, Frank Partnoy
and Dacid Skeel in financial times of July, 2006 said that security derivatives
encourage banks to lend more than they would, at lower rates to riskier borrows.
Recent innovations in security derivatives market have improved lender abilities
to transfer credit security to another institution while maintaining relationship
with borrowers (David Skeel and Frank Partnoy, 2006)

ii. Credit securitization: it is the transfer of credit security to insurance firm

and this relieves the hazards effects of classified assets. The approach
insures the lending activity of banks, the growing popularity of credit
management securitization can be put down to the fact that banks typically
use the instrument of securitization to diversify arbitrage and liquidity
improvements when selling securitization transactions. A cash collateralized
loan obligation is a form of securitization in which assets (bank loans) are
remove from a bank balance sheet and packaged (troughed) into marketable
securities that are sold on to investors. (Michalak and Uhde, 2009)
iii. Compliance to Basel Accord: the Basel accord are international principle
and regulations guiding the operations of banks to ensure soundness and

17
 stability. The Accord was introduced in 1988 in Switzerland. Compliance
with the Accord means being able to identify, generate, track and report on
risk related data in an integrated manner with full audit ability and
transparency and creates the opportunity to improve the security
management process of bank (Chen and Pan, 2012)
iv. Adoption of sound internal lending policy: the lending policy guides banks
in disbursing loans to customers. Strict adherence to the lending policy is by
far the cheapest and easiest method of security management. The lending
policy should be in line with the overall bank strategy and the factors
considered in designing a lending policy should include: the existing credit
policy, industry norms, general economic condition of the country and the
prevailing economic climate (Kithinji, 2010)
v. Bureau: this is an institution which compiles information and sells this
information to banks as regards to lending profile of a borrower. The bureau
awards credit scores called statistical odd to the borrower which makes it
easy for banks to make instantaneous lending decision. Example of security
bureau is the security management system of the commercial bank of
Nigeria.

REFERENCES

Alam Z and Masukuji Aman (2011) Security Management Practices: A Critical

Diagnosis of Some Selected Commercial Banks in Bangladesh. Journal of
Business and Technology (Dahka) Vol Vi No1, Pp.15-35

Bagchi, S.K (2003), Security Management- A Panacea or Conundrum? SBI

Monthly Review Vol.42, No 10, Pp.497-504.

Bales (2008) the Financial of Small Business, Sweet and Maxwell Publishing Ltd
London. Bq1 Banking Report (2010) Getting Banks to Lend Against the
18
 Bankers Managing of July, 2012 Publication of the Financial Times ltd
London

Nouman Umar (2013) Banking Security Pp.16-19.

Wikipedia search/Meaning of Banking security, Last Modified, 19 September,

2016.

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 INTRODUCTION

The word research is defined by Osula (1998) as the process of arriving at a

dependable solution to problems through planned and systematic collection,
analysis, and interpretation of data.

19
 This chapter will give detailed explanation on how data can be collected and
analyzed. It explains the type of data used in collection and analysis.

3.2 TARGET POPULATION

Population according to Osula (1998) is the number of people living in a

group whether geographical area and specialized group. A population is the totality
of object under study or investigation.

The population of this study consists of academias in tertiary institutions,

banking industries, bank customers, and religious leaders in Nigeria. The
population was selected in order to obtain adequate information.

3.3 SAMPLE SIZE

Sampling means the whole portion of the entire population as to ensure

conclusion about the population in an attempt to bring out accurate information.
From the population, the sample size to be used by the researcher constitute of
thirty (30) individuals which consist of 10 bank customers, 10 bank staff (from
customer service department), and 10 bank staff (from cash department).

3.4 SAMPLING TECHNIQUES

However, in selecting the sampling size, for the purpose of this research work,
the sampling techniques that we have are as follows:

i. Profitability sampling and

ii. Non-profitability sampling

Profitability sampling can be grouped into four categories which are:

20
 a. Simple random sampling
b. Stratified random sampling
c. Systematic sampling
d. Cluster sampling

While non-profitability sampling can also be grouped into four which are:

a. Availability sampling
b. Quota sampling
c. Purposive sampling
d. Snowball sampling

The researcher will adopt the use of simple random sampling technique to select
the simple size of this project.

3.5 METHOD OF DATA COLLECTION

Basically the method used for data collection is primary and secondary sources
of data collection.

1. Primary sources of data: these are data whose sources are original. They
are also data used for specific purposes for which they are collected;
examples include personal interviews, questionnaires, direct observation
etc. The method to be used in this study is questionnaires, as well as oral
interviews and personal observations.
2. Secondary sources of data: they are data whose sources are not original to
present users; they are data that have already been collected by other main
users. Those used in this research work include published newspapers,
journals and websites.

3.6 METHOD OF DATA PRESENTATION AND ANALYSIS

There are different method of data analysis of sampling depending on the

population involved in these research work, simple statistical tools shall be used,
21
that is percentage table for easy comprehension and analysis of data collected in
the process. Below is the formula for calculating percentage of response:

NR x 100
TQ 1
Where:
NR= number of respondent in each category of observation
TQ=total questionnaire will be distributed and retrieved.

Thus, the group of observation with the highest percentage of some opinion is
considered relevant and inference is the drawn on such basis.

REFERENCES

Eguzoikpe, E.E. (2008), Research Methodology, a Practical Treatise for Students.

2nd Edition. Jos Quality Function Publishers.

Olusola, A.J (1998). The Preparation and Presentation of Research Project. Jos.
Planning research publication PP.13

22
 CHAPTER FOUR

DATA PRESENTATION/ANALYSIS

4.1 INTRODUCTION

This chapter shall represent data presentation and analysis, data presentation is
presented using statistical table while analysis is presented using simple
percentage.

4.2 DATA PRESENTATION

23
 Data presentation shall be presented using the method specified above, that is
using sample percentage.

Question 1: Do banks carryout security management to gain efficiency in their

credit management?

Table 1

Variable No. of respondents Percentage (%)

YES 26 86.7
NO 4 13.3
TOTAL 30 100
Source: field survey 2016

From the table above 26 respondents representing 86.7% said Yes banks carry out
security management to gain efficiency, while 4 respondents representing 13.3%
said No.

Question 2: is security management essential for the strategies of banking

operation in Nigeria?

Table 2

Variable No. of respondents Percentage (%)

YES 24 80
NO 6 20
TOTAL 30 100
Source: field survey 2016

From the above table, 24 respondents representing 80% said Yes, security
management is an essential strategy of banking operation in Nigeria, while 6
respondents representing 20% said No.

24
Question 3: appropriate security management in banking industry depends on the
efficiency of management?

Table 3

Variable No. of respondents Percentage (%)

AGREED 25 87
DISAGREED 5 17
TOTAL 30 100
Source: field survey 2016

The table above shows that 25 respondents representing 83% agreed that
appropriate security management in banking industry depends on the efficiency of
the management, while 5 respondents representing 17% disagreed.

Question 4: is the security management of your bank effective?

Table 4

Variable No. of respondents Percentage (%)

YES 30 100
NO - -
TOTAL 30 100
Source: field survey 2016

The table above shows that 30 respondents representing 100% said Yes security
management in their bank is effective, while non respondents said No

Question 5: are there strategies by the security management of your bank

favourable?

Table 5
25
 Variable No. of respondents Percentage (%)
YES 23 77
NO 7 23
TOTAL 30 100
Source: field survey 2016

The table above shows that 23 respondents representing 77% said Yes, the
strategies taken by the security management in their bank is favourable, while 7
respondents representing 23% said No

Question 6: how does the current economic policy affect your level of security
management?

Table 6

Variable No. of respondents Percentage (%)

Positively 6 20
Negatively 24 80
TOTAL 30 100
Source: field survey 2016

The table above shows that 24 respondents representing 80% said current
economic policy affects their bank positively while 6 respondents representing
20% said it affects their bank negatively.

Question 7: what is the level of security management in your bank?

Table 7

Variable No. of respondents Percentage (%)

Satisfactory 26 86.7
Not satisfactory 4 13.3
26
 TOTAL 30 100
Source: field survey 2016

The table above shows that 70% of the respondents are satisfied with the level of
security management in their bank, while 30% are not satisfied.

Question 8: does quality security management helps in maintaining the liquidity of

your bank?

Table 8

Variable No. of respondents Percentage (%)

YES 30 100
NO - -
TOTAL 30 100
Source: field survey 2016

From the table above 30 respondents representing 100% said quality security
management helps in maintaining the liquidity of their bank, while no respondent
said No.

Question 9: how can you assess the level of the performance of security
management in your bank?

Table 9

Variable No. of respondents Percentage (%)

Satisfactory 19 63.3
Not satisfactory 11 36.7
TOTAL 30 100
Source: field survey 2016

27
From the table above, 19 respondents representing 63.3% said the level of the
performance of security management in their bank is satisfactory, while 11
respondents representing 36.7 said they are not satisfied.

Question 10: have the security management in your bank properly identified their
roles in the performance of banking activities?

Table 10

Variable No. of respondents Percentage (%)

YES 30 100
NO - -
TOTAL 30 100
Source: field survey 2016

The table above shows that 30 respondents representing 100% of the respondents
said the security management in their bank properly identified their roles in the
performance of banking activities, while no respondent said no.

Question 11: does adequate security management has effect on banking operation?

Table 11

Variable No. of respondents Percentage (%)

YES 28 93.3
NO 2 6.7
TOTAL 30 100
Source: field survey 2016

The table above shows that 28 respondents representing 93.3% agreed that
adequate security management has effect on banking operation, while 2
respondents representing 6.7% said it does not.

28
Question 12: if yes, how does it affect the performance of banking?

Table 12

Variable No. of respondents Percentage (%)

Positively 28 93.3
Negatively 2 6.7
TOTAL 30 100
Source: field survey 2016

The table above shows that 28 respondents representing 93.3% said adequate
security management affects banking operation positively, while 2 respondents
representing 6.7% said it affects it negatively.

Question 13: what strategies are being put in place to ensure the security of your
bank?

Table 13

Variable No. of respondents Percentage (%)

Mobile police 7 23.3
Insurance 11 36.7
CCTV Camera 12 40
Total 30 100
Source: field survey 2016

From the information in the table above 7 respondents representing 23.3% there is
the use of mobile police as a strategy put in place to ensure the security of their
bank, 11 respondents representing 36.7% insurance while 12 respondents
representing 40% said CCTV camera.

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 CHAPTER FIVE

CONCLUSION

5.1 INTRODUCTION

This chapter is on the summary of the study as regards to the research

findings, conclusions are drawn from the findings, while some constructive
recommendations are also made. Thus the chapter tries to draw the entire research
work to a conclusion through a summary of all findings from the field survey.

5.2 SUMMARY OF FINDINGS

Security management underscores the fact that the survival of organization

depends heavily on its capabilities to anticipate and prepare for the change rather
than just waiting for the change and react on it.

Security management is the process where managers satisfy these needs by

identifying key security, obtaining consistent understandable operation security
measure. Choosing which security to reduce and which to increase and by what
means and also establishing procedures to monitor the resulting security position.

Many people earlier believed that security management means total

elimination of security but security management does not mean total elimination of
security, but rather the goal of security management is to minimized and optimize
security reward-trade-off.

This research shows the situation in banks to determine whatever security

management have significant impact on efficient management among other

30
objectives with the aid of survey design and questionnaires which is been validated
by the use of simple percentage.

Authors view related to security and security management strategies of bank.

Various security and security management definition, concepts, procedure,
principle, practices and the importance of security management in banks.

The study as well focuses on all universal bank presently in the country with
special reference to GTBank, departments were selected as sample size in which
the staff in these department constitute the respondents with the use of table and
percentage interpretation of analysis were made to give a clear understanding.

It was concluded that security management affected the efficiency of security

management in the banking industry, security and security management improves
organizational growth, liquidity and profitability and adequate security
management has positive effect on bank security management.

5.3 CONCLUSION

After several study assessment, analysis proper interpretation of the data

obtained from the respondents, it was concluded that security management
underscores the fact that survival of an organization depends heavily on its
capabilities to anticipate and prepare for the change rather than just counting for
the change and the research to it. It is as well realized that security management is
to minimize and optimize security-reward trade-off rather than expanding business
areas, deregulation and globalization of financial activities emergence of new
financial products and increased level of competition has necessitate the need for
an effective and structured security management in financial institutions.

31
 Bank security management on the other hand was realized to be the regulation
and controlling of credit which involves the creation, extension and collection of
debt which intervene with the diligence and default of business as well as we
know, the fundamental core business of a bank is to mobilize deposits and lend the
funds to those who can repay (provision of credit facilities)

5.4 RECOMMENDATION

Based on the findings, the following recommendations were suggested which

if properly implemented will further enhance the impact of security management
on banks security management efficiency:

1. Proper security management dynamics in respect to security management

should be done through adequate security of loan application monitoring of
loan disbursement making sure that it strictly confirms with the dictated of
canons of lending principles with the efficiency of security management is
positively affected by security management principle.
2. An effective security management system should clearly defined security
management policies and measurement, monitoring reporting and control so
as to reduce the rate of bad debt and improve organization growth and
eventually profitability.
3. The formulation of adequate policies relating to security management only
would not solve the purpose of achieving efficient security management
unless it is clear and communicated down the line, senior management has
to ensure that these policies are embarked in the culture of the bank so as to
infuse the positive effect of security management of bank credit
management.

5.5 SUGGESTION/NEED FOR FURTHER RESEARCH

32
 The researcher suggested that further research should be made on the
following areas:

Impact of security management on commercial banking performance.

The implication of not identifying the roles of security management in
Nigeria commercial banks.

33
 BIBLIOGRAPHY

Alam Z and Masukuji Aman (2011) Security Management Practices: A Critical

Diagnosis of Some Selected Commercial Banks in Bangladesh. Journal of
Business and Technology (Dahka) Vol Vi No1, Pp.15-35

Bagchi, S.K (2003), Security Management- A Panacea or Conundrum? SBI Monthly

Review Vol.42, No 10, Pp.497-504.

Bales (2008) the Financial of Small Business, Sweet and Maxwell Publishing Ltd
London. Bq1 Banking Report (2010) Getting Banks to Lend Against the
Bankers Managing of July, 2012 Publication of the Financial Times ltd
London

Eguziokpe .E.E (2008), Research Methodology, a Practical Treatise for Student 2nd Ed.
Jos Quality Function Publishers.

End of year December 2014 Report and Account of GTB

Kithinji, A.M (2010) Security Management and Profitability of Commercial Banks in

Kenya School of Business University of Nairobi, Nairobi.

Nouman Umar (2013) Banking Security Pp.16-19.

Olusola, A.J (1998). The Preparation and Presentation of Research Project. Jos.
Planning research publication PP.13

Pandey, I.M (1987) Financial Management, New Printer-Dia Publishing Ltd, India

Wikipedia search/Meaning of Banking security, Last Modified, 19 September, 2016.

34
 APPENDIX A

Department of Banking and Finance

Plateau State Polytechnic,
Barkin Ladi,
Jos,
P.M.B 02023.
Bukuru.
November, 2016.
The Manager,
GT Bank,

Jos.

REQUEST FOR INFORMATION

I am a final year student of the above mentioned institution conducting a
research on the topic An Analyses of Security Management Strategies of Banks in
Nigeria and its Role in Banking Performance, using your bank as a case study.

The purpose of this questionnaire is to collect information on the above

topic, be assured that all information obtained will be used strictly for academic
purpose and shall be treated with confidentiality.

Thank you in anticipation for your cooperation.

Yours Faithfully

35
 Blessing Silvia Ogueri

APPENDIX B

Section A

Profile:

Gender: Male ( ) Female ( )

Qualification: ND ( ) BSC ( )

Section B

Please tick the boxes below that best explain your opinion.

1. Do bank carryout security management to gain efficiency on their credit

management? Yes ( ) No ( )
2. Is security management essential for the strategies of banking operation in
Nigeria? Yes ( ) No ( )
3. Appropriate security management in banking industry depends on depends
on the efficiency of the management Strongly Agreed ( ) Agreed ( )
Disagreed
4. Is the security management of your bank effective? Yes ( )
No ( )
5. Are the strategies taken by the security management of your bank favorable?
Yes ( ) No ( )
6. How does the current economic policy affect your level of security
management? Positively ( ) Negatively ( )
7. What is the level of security management in your bank? Satisfactory ( ) not
satisfactory ( )
8. Does quality security management helps in maintaining the liquidity of your
bank? Yes ( ) No ( )
36
9. How can you assess the level of security management in your bank?
Satisfactory ( ) Not satisfactory ( )
10.Have the security management in your bank properly indentified their role in
the performance of your banking activities? Yes ( ) No ( )
11.Does adequate risk management have effect on the performance of banking
operation? Yes ( ) No ( )
12.If yes, how does it affect the performance of banking? Positively ( )
Negatively ( ).
13.What strategies are being put in place to ensure the security of your bank?

37