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

Despite the interference of government in the management of financial institution there is no doubt that a lot of ills are besetting financial institution existence in Nigeria especially in the area of control regulation and operation. Regulation does not guarantee that they will reverse bank failure and serious banking crises. No matter how effective and thorough the regulationary mechanism the problem may still occur as history has shown it. Even with high policy and regulation which usually accompany and serious bank crises or bank failure, it is to prevent impact of such failure from threatening the systematic last resort function on central bank Establishing of more financial institution by both government and individual were implemented to solve the problem of poor service to customers and also dominance of foreign based bank by Nigeria indigenous bank to help in encouraging improved banking system in Nigeria, but still there is high production costs and goods that were uncompetitive internationally high interest races and rift among bank directors and unprecedented industrial unrest within the sector exist due to shallow knowledge of management policy and regulation in this sectors of economy which help in paralyzing the whole system. Also problem exists due to hard core of such regulation and deregulation of policy to the financial institution.