THE EFFECT OF GOVERNMENT INTERFERNCE IN MANAGEMENT OF FINACIAL INSTITUTION (A CASE STUDY OF UNION BANK OF NIGERIA PLC)

Management has been defined as the process of combining and utilizing organization resource of managerial to accomplish organization objectives.  It is also a process entailing responsibility for effective planning and regulation of operation in a enterprise in fulfillment of a  given purpose or task.

What then do we actually means by interference?

Interference according to Websters dictionary is to take and active but unwelcome part in some else’s activity.

In this study is has been revealed that this interference on financial institution by government as a whole is a noble in the right direct.  This Niger financial system is very vibrant and highly competitive they have four basic product lines in the banking industry such as deposit base product lending base product fee base products and technology based product.  This was instituted by the observation during the research that financial institution benefited immensely by the government on the financial  intuition.

It is a well know fact that number of service financial institutions offers have increased but risk taking which is fundamental nature of their business remains unchanged.  This has led to conclusion that management is financial institution is surrounded with risk management which involves mismatches of assets and liabilities on other side and it is cost borrowing and lending on the other side.  The economy and to nurture  it a lone the path of development been.  The role of financial institution mostly banks has been constrained by number of facts in too past.  Price to now the industrial sectors has been characterized by massive government involvement because of weak technological base lack of linkages in infrastructure and policy investment    highly production cost and goods that were uncompetitive internationally.  Over all the micro economic environment was  highly unstable witnessing capital fight high interest or inflation rates negative real growth rates and fiscal excesses.  With an external debt burden of about 27.4 6 as the end of 1997,t he repayment burden put constraint on growth.

Since 1995 however the federal government been able to store some measure of fiscal discipline through low budget deficits which achieved stable interest and exchange rates regimes while pushing down inflation to a simple digit of 8.5 percent in 1998

Aggressive reform and sanitation of  the financial institution source were pursued.  On the other hand little or no attention was paid to the vital area of privatization of government utilities liberalization   of the economy and improvement of infrastructure.

The above review of the economy has been undertaken and  other financial institution were supposed to operate and provide financial to the industrial sector 

Therefore, form the above review the researcher wants to use this study to explore those factors emanated from government interference in the management of financial institutions that inhibited them from effectively discharging their responsibility to the economy generally using the  rules and regulation of union bank PLC to determine the extent it has contributed both positively and the negative part of such interference in the institution