Internal Control System And Performance Of Banks; A Case Study Of Equity Bank Kabala Gala Branch

ABSTACT

The study intended to investigate the internal control systems on performance of banks with the

objectives of establishing the relationship between internal control system and performance of

bank in Equity Bank Kabalagala Branch to examine the effect of internal control system on

performance of Equity Bank Kabalagala branch

The purpose of this study was to investigate the internal control systems on performance of

banks a case study: Equity bank Kabalagala Branch

In data collection process, the researcher used instruments such as administered questionnaire

and interviewing for primary data, and extensive library research, which data was analyzed and

presented in form of tables, percentage distribution and frequency distribution.

Therefore the study found out that, Internal control systems and cash management benefited the

organization in terms of improved productivity, profitability, and efficiency, however, the

employees were not adequately sensitized about the internal control systems and cash

management process in Equity Bank Kabalagala Branch in addition, the internal control systems

and cash control management method applied in Equity Bank Kabalagala Branch was not

appropriate enough, and the government had attained the both the economic and fiscal objectives

like the increase in volume of goods and services and increase in tax revenue. It was therefore

concluded that; Internal control systems seem to have brought good impact on the cash

management of the organization in terms of improved performance, efficiency and effectiveness

in the economy in general in terms of increased investments and improved productivity.

Although the doubt is still seen in terms of the method applied in Equity Bank Kabalagala

Branch. Hence this has left the government still in big influence of some valuable decisions to

the organization which could impact on its performance.

Thus recommendations to the government and the management of Equity Bank Kabalagala

Branch that there is a need for a fair and efficient improvement in the internal control systems

used, in addition an improvement in the judicial system is necessary so that the legal system is

quicker and supports the rights of borrowers and lenders, research also recommends on the

improvement on the transparency of cash management so as to solve the problems of internal

control systems and cash management in the organizations. There fore more research has to be

gathered to test the validity of this option as it could be a tool to solve the problems associated

with internal control systems on performance of Banks.