CAUSES AND EFFECTS OF MISMANAGEMENT IN FINANCIAL INSTITUTIONS

In this aspect it is well known fact that adequate management in the financial institutions well enable them pay their roles as supposed and achieved their basic aim or objectives as well. They are unable to perform their roles in selling of securities paying at taxes sources or revenue to the government help in international trade etc. Thereby encountering some problems which may be stated. i. They are finding themselves unable to meet customers withdrawals ii. Customer withdraw much from them thereby reducing deposit liabilities much constitutes the main source of banks, loan able funds. iii. Unable to abide by the relevant laws especially before the financial ordinance. iv. That they are having loss of trust by their customers in as much as not investing on them anymore. v. That they are having poor turn-over fear. vi. That issue has accommodated distress in the banking system which has enraged deterioration and failure in banking of financial activities thereby revising of the gains made in the past.