MANPOWER DEVELOPMENT IN BANKING AND FINANCE

1.0. Introduction

Considering the recent distress and failure of some commercial, community and merchant banks as well as other non-bank financial institutions such as Finance houses, mortgage finance companies in Nigeria, it is high time that recruitment into the banking and finance sectors be based on professional qualifications and experience. The practice of using staff without relevant qualification but on the job experience should be discouraged. In addition to this, great emphasis should be attached to manpower training and development in the banking and financing sectors.

Manpower development in sector can be described as the activities of the worker himself or his employer aimed at improving the worker’s skills and knowledge to perform his job more effectively to achieve the ultimate goal of the organisation. This is usually done through: in-service or part time training, formal (full-time) training in tertiary institutions, seminars, workshop, correspondence schools, taking professional examinations etc.

The main objective of training and development is to improve current performance and provide a suitable trained staff to meet present and future needs. With training and development, a person’s knowledge and skills are bound to be improved and his attitude and behaviour accordingly modified.

In this unit, detailed study of institutions connected with training and development in banking and finance sectors are considered with particular emphasis on their role in the development of manpower in banking and finance. These institutions among others include: the Charted Institute of Bankers of Nigeria, Financial Institutions Training Centre. Also topics like Bankers Committee and Monetary policy circular are adequately covered.

2.0 OBJECTIVES

After going through this unit, you should be able to:

1. State the policy formulation and coordination efforts of CIBN. 
2.  List the functions of The Financial Institutions Training Centre. 
3. Discuss the manpower development needs of the banking industry 
4.  Justify the existence of The Bankers Committee 
5. Discuss the Monetary Policy Circular. 

3.0 MAIN CONTENT

3.1THE CHARTERD INSTITUTE OF BANKERS OF NIGERIA (CIBN)

The Chartered Institute of Bankers of Nigeria dates back to November 28, 1963 with the establishment of the Local Centre of the Institute of Bankers, London, in Nigeria. The Institute was registered in 1976 as the Nigeria Institute of Bankers, a company limited by guarantee. In 1977, it became operational and autonomous. The Institute attained a charter statue granted with the promulgation of Degree 12 of 1990 by the Federal Government. The principal administrative office of the Institute is the National Secretariat located at Bankers’ House, Pc 19, Adeola Hopewell Street, Victoria Island, Lagos with its annexe at 7, Turton Street, Yaba, Lagos, where the Library is located.

By the provisions of Degree 12, 1990 that gave legal backing to it, the Institute is governed by the National Executive Council (NEC) headed by a President/Chairman of Council. In its Policy formulation and coordination efforts, the National Executive Council is assisted, by ten standing Committees.

The National Secretariat is run on a directorate system under the direct administration of the Registrar / Chief Executive. The two directorates Finance and Administration and Education and Consultancy are reporting to the Registrar /Chief Executive while he directly oversees membership, Internal Audit and Corporate Affairs departments.
The Directorate of Education and Consultancy is made up of Department of Examination and Training and Department of Research and Consultancy. The department of examinations and training is made up of examination unit and training unit whiles the department of research and consultancy is made up of the following four units. Consultancy unit, research unit, library unit, and evening classes unit.

The directorate of finance and administration is responsible for the management of the finance of the Institute, general administration, personnel matters and system development. It is made up of three
main departments namely: finance department, personnel and administration and computer departments.
The institute approved the establishment of Zonal Offices with effect from January 1990, it make the services of the Institute available to members of the grassroots throughout the country. The Zonal Offices with Zonal Coordinators include Aba Zonal Office, Kaduna Zonal Office.

There are also branches of the Institute including the Association of Professional Women Bankers. There are at present 31 branches. The branches serve as the major links between the Council, the National Secretariat and members of the Institute.

The Institute examination is at present structured into three major examinations viz: pre-foundation, foundation and the professional examination which is expected to be taken in three stages, thus professional examination Ι, Professional examination ΙΙ and Professional examination ΙΙΙ.
The branch of the institute is headed by a Chairman supported by other officers. There are four directorates at the National Secretariat: Education and Consultancy, Research and Development, Membership and Finance and Administration.

In pursuit of its objectives the Institute performs the following activities:

1. It promotes banking in Nigeria with a view to helping staff employed in the banking and finance sectors to acquire modern banking techniques and prepare them for higher responsibilities in their various institutions. This is done by holding and conducting examinations. As enunciated above in banking. Similarly, it organises revision courses for students, seminars, workshops, public lectures and symposia for top and middle level management staff of banks. It publishes textbooks on banking and finance and a professional journal known as ‘The Nigeria Banker’. 
2. It upholds and further helps in ensuring the observance of professional ethnics and norms in the banking sector. This is done by drawing codes of conduct for all bank employees and entrusting the enforcement of these codes to the Institute’s Disciplinary Tribunal. 
3. It facilitates good rapport between bankers on matter of common interest and keeps members in touch with the latest developments in banking business generally. Both the Bankers’ Forum and the annual delegates conference of the institute present ample opportunities for its fellows, associates, and the chief executives of banks, including policy makers, to consult on pressing issues. 
4. It pursues actively research into local condition and reviews and tackles the professional problem confronting its members. 
5. It disseminates banking information to the general public and liases with government in promoting and regulating the bank sector in Nigeria. The institute’s annual dinner provides a forum for members and non-members from government and the business sectors to interact and share ideas. 

3.2 FINANCIAL INSTITUTIONS TRAINING CENTRE (FITC)

Following the report of financial system Review Committee, Financial Institutions Training Centre (FITC) a company established by association of all the clearing banks was established and started operation in 1981. It is a limited liability company i.e. limited guarantee. The FITC perform the following functions to enhance manpower development in Nigeria.

1. It trains and educates personnel employed or to be employed by banks and other financial institutions. 
2. It protects, promotes and advances the knowledge and practice of banking and finance throughout Nigeria by organising seminar, lectures, workshops, and other practical and theoretical courses. 
3. It collects and disseminates statistical and other information relating to banking, finance, commerce, trade and other related disciplines. 
4. It initiates, supports and advises on legislative or other measures affecting the aforementioned interests. 
5. It prints and publishes periodicals, bulletin, books and leaflets that it thinks desirable for the promotion of its projects. 
6. It engages in consultancy and advisory services in its area of competence.a.In conclusion, the training activities of FITC focused on: Credit assessment and administration; b. Advance Finance and Accounting; c. Corporate lending; d. General Management; e. Corporate planning and assessment of bank performance; f. Executive effectiveness improvement seminar. 

Essentially, FITC focuses on functional training rather than academic course. Its programmes are directed at middle and top management cadres.

3.3TERTIARY INSTITUTIONS IN NIGERIA

Tertiary institutions refer to higher institutions above secondary schools. Included in this category are colleges of technology, polytechnic and universities that offer courses in Banking and Finance. The Polytechnics and Colleges of technology offer intensive courses in banking and finance on full time and part-time diploma programmes. Similarly, some universities offer Bachelor degrees and Masters Degrees programmes in banking and finance. These Institutions hold and conduct examinations on banking and finance and issue Diplomas, and Degree Certificates to those who satisfy the conditions for their awards from time to time. The banking and finance department of these institutions also hold lectures, seminars and conferences on banking and finance subjects. Nowadays, there abound mostly in the urban cities several Professional study centres to supplement the efforts of the Polytechnics and Universities. They organise weekdays and weekend revision courses for candidates who are preparing for the professional examinations of the Chartered Institute of Bankers of Nigeria. These centres employ the services of qualified and/or practising bankers as part-time lecturers to lecture the students. To date these centres have produced several qualified bankers in Nigeria.

3.4THE BANKERS COMMITTEE

Bankers Committee comprise of the Chief Executive of all licensed banks in Nigeria and is supervised by the Central Bank of Nigeria (CBN). It came into being in 1971. The duty of the Committee is to find solutions to the problems facing banks in their day-to-day operations as well as those problems relating to orderly growth and developments of the entire banking system in Nigeria. The national secretariat of the committee is situated at the Banking Supervision Department of the Central Bank of Nigeria’s head office now in Abuja while the Local (or State) Committees are located at the branch offices of the Central Bank of Nigeria at the state capitals Throughout Nigeria.

The Deputy Governor of the Central Bank of Nigeria and a senior official of the same bank act as the Chairman and Secretary of the Committee respectively. The functions of the Committee are as follows:

1. It serves as an effective channel of communication between banks and the Federal Government or its regulatory agencies in the financial sector. 
2. It interprets all banking legislations and directives to remove arguments and misunderstand by member banks. Through this forum. Member banks air their grievances and make suggestions on any issue affecting the banking sector. 
3. It makes proposals and suggestions every year to the Federal Government or monetary authorities in the areas of banking, finance and the Nigeria economy for consideration by the authorities concerned and possible inclusion in the annual budget. 
4. It fosters and promotes an efficient banking system most especially the development of high level manpower in banking. For example, it moots the idea of establishing the Financial Institute Training Centre (FITC) and the Chartered Institution Training of Bankers of Nigeria (CIBN). The Committee also gives both moral and financial assistance to these two institutions for their smooth running. 
5. It prepared the Bankers Tariff and reviews periodically the prepared tariff. 
6. It prepares a code of conduct for all banks in order to ensure the safe and sound conduct of banking business in Nigeria. 
7. It examines any major issue affecting banking before taking a final decision and makes recommendations. Thus the monetary authorities usually take its recommendations into consideration on issues that affect the operations of banks. 

For instance, the recommendation of the sub-committee on bankers’ tariff produced a basis for costing banking services. Similarly, the recommendations of another sub-committee that examined the issue of delays at bank counters, among other things, suggested the payment of cheque of certain limit to well known and trusted customers without the rigorous cheque reference procedures. This gives birth to the recent express services operated by some commercial banks coupled with the introduction of automated teller machines (ATM’s) by some commercial banks.

Self-Assessment Exercise: 

What are the functions of the Bankers Committee?.

3.5 MONETARY POLICY CIRCULAR

Monetary policies are those measures taken by the monetary authorities to control the cost, quality and direction of credit to achieve national objectives. On the other hand, monetary policy circular is a booklet published annually by the Central Bank of Nigeria containing the monetary, credit, foreign and Exchange Policy guidelines for the fiscal year which is usually 12 months. The circular is divided into two sections. With reference to circular No. 33, section one contains the Monetary Policy measures adopted by the Central Bank of Nigeria in 1999 under the following sub-headings: