The study is aimed at the assessment of
compliance with internal control mechanism by Microfinance Banks in the North
Central States of Nigeria. Data were
collected through the use of structured questionnaire which contained 45 items.
Descriptive statistics, mean, standard deviation and t-test were used for data
analysis. Simple random sampling was
used to select three states (Benue, Nasarawa and Plateau) and Abuja out of the
six states in the North Central States of Nigeria. The population of the study
consisted of 152 respondents (management staff) of Microfinance banks. The instrument was subjected to face
validation by three experts. It was also trial tested on 40 respondents to
establish the internal consistency of the instrument. The reliability co-efficient of the
instrument was computed to be 0.97, 0.98, 0.95, and 0.80 respectively for
cluster of the instrument and the over-all co-efficient was 0.98. The result of the data analyzed showed that
Microfinance Banks highly complied with physical control measure in the North
Central States of Nigeria. It also
showed that the importance of internal audit in the detections and preventions
of errors and frauds in Microfinance banks cannot be over looked. It was recommended that management of
Microfinance banks should always ensure that risk management procedures of the
bank are followed in loan approval and disbursement to reduce the incidence of
bad debts. That the rural and semi-urban
poor should always be the target of management of Microfinance banks in loan
disbursement since Microfinance banks were established to meet their financial
needs. Central Bank of Nigeria should
ensure that guidelines and monitoring policies of the Central Bank of Nigeria
are complied with by all the Microfinance banks operating in Nigeria.
CHAPTER I: INTRODUCTION
Background of the
Study-------------------------------------------------------- 1
Statement of the Problem
------------------------------------------------------ 7
Purpose of the Study------------------------------------------------------------ 8
Significance of the Study
------------------------------------------------------ 9
Research Questions
------------------------------------------------------------- 10
Hypotheses
------------------------------------------------------------------------ 10
Delimitation of the Study
------------------------------------------------------ 11
CHAPTER
II: LITERATURE REVIEW
--------------------------------
Conceptual and Theoretical Framework ------------------------------------- 13
Internal Control Structure in Microfinance
Banks ------------------------- 26
The Importance of Internal Audit in
Microfinance Banks ---------------- 35
Compliance of Microfinance Banks with
Prudential Regulations -------- 37
Related Empirical Studies
------------------------------------------------------ 42
Summary of Related Literature
----------------------------------------------- 46
CHAPTER III: METHODOLOGY
Design of the Study
------------------------------------------------------------- 48
Area of the Study
--------------------------------------------------------------- 48
Population of the Study
--------------------------------------------------------- 49
Sample of the Study
------------------------------------------------------------ |
49 |
Instrument for Data
Collection
------------------------------------------------ |
50 |
Validation of the
Instrument --------------------------------------------------- |
51 |
Reliability of the
Instrument --------------------------------------------------- |
51 |
Method of Data
Collection
----------------------------------------------------- |
51 |
Method of Data Analysis
------------------------------------------------------- CHAPTER IV: ANALYSIS AND PRESENTATION OF DATA |
52 |
Findings of the Study
----------------------------------------------------------- |
67 |
Discussion of Findings
--------------------------------------------------------- |
70 |
Re-statement of the
Problem
-------------------------------------------------- |
77 |
Summary of the Procedures
used for the Study ----------------------------- |
78 |
Summary of Findings
----------------------------------------------------------- |
79 |
Implications of the
Study
------------------------------------------------------ |
80 |
Conclusion
----------------------------------------------------------------------- |
81 |
Recommendations
--------------------------------------------------------------- |
82 |
Suggestion for Further
Studies
------------------------------------------------ |
83 |
REFERENCES
---------------------------------------------------------------- |
84 |
APPENDICES ----------------------------------------------------------------- |
91 |
Samuel, C (2019). ASSESSMENT OF COMPLIANCE WITH INTERNAL CONTROL MECHANISM BY MICROFINANCE BANKS IN THE NORTH CENTRAL STATES OF NIGERIA. Afribary.com: Retrieved March 09, 2021, from https://afribary.com/works/assessment-of-compliance-with-internal-control-mechanism-by-microfinance-banks-in-the-north-central-states-of-nigeria-1
Chinasa, Samuel. "ASSESSMENT OF COMPLIANCE WITH INTERNAL CONTROL MECHANISM BY MICROFINANCE BANKS IN THE NORTH CENTRAL STATES OF NIGERIA" Afribary.com. Afribary.com, 29 Jul. 2019, https://afribary.com/works/assessment-of-compliance-with-internal-control-mechanism-by-microfinance-banks-in-the-north-central-states-of-nigeria-1 . Accessed 09 Mar. 2021.
Chinasa, Samuel. "ASSESSMENT OF COMPLIANCE WITH INTERNAL CONTROL MECHANISM BY MICROFINANCE BANKS IN THE NORTH CENTRAL STATES OF NIGERIA". Afribary.com, Afribary.com, 29 Jul. 2019. Web. 09 Mar. 2021. < https://afribary.com/works/assessment-of-compliance-with-internal-control-mechanism-by-microfinance-banks-in-the-north-central-states-of-nigeria-1 >.
Chinasa, Samuel. "ASSESSMENT OF COMPLIANCE WITH INTERNAL CONTROL MECHANISM BY MICROFINANCE BANKS IN THE NORTH CENTRAL STATES OF NIGERIA" Afribary.com (2019). Accessed March 09, 2021. https://afribary.com/works/assessment-of-compliance-with-internal-control-mechanism-by-microfinance-banks-in-the-north-central-states-of-nigeria-1