CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The Central Bank of Nigeria is a federal government bank. It is referred to as the father of all banks.

The country as it is responsible for issuing currency and regulating the countries monetary policies. The Nigeria deposit money banks are controlled by the central bank through it clearing house.

A system by which inter-bank through debtless is settled. There are twenty two banks in Nigeria with commercial bank account for more than half of numbers.

Although deposit money banks in Nigeria carry out other banking functions they concentrate mostly on deposit banking.
The management of fund is deposit money bank particular reference to Union Bank of Nigeria Plc is the topic reviews in the project.

They make up of the firm’s capital structure the management of fund, motive of holding money, the firm financial statement to outsiders and its operation are the subject matter of the review.
1.2 STATEMENT OF THE RESEARCH PROBLEM
In this era of bank distress management finds has been a matter of concern to banks and government even the customers. The statement of the research problems are as follows under the creation of credit, the deposit money bank ability of Union Bank PLC, Ilorin.
i. The monetary Authorities actions: the central bank has a number of measure that include, adjusting the bank ratio.
ii. Government Legislation: the withdrawal of government accounts restrict deposit money bank ability to create credit.
iii. The probability of cash drain of other bank.
1.3 RESEARCH QUESTIONS
The project work is intended to review the management of fund of commercial banks with particular reference to Union Banks of Nigeria Plc Ilorin.
As a result of this the following questions arise.
i. What are the banks sources and application funds?
ii. What constitute the bank’s capital structure?
iii. How does the bank manage its cash?
iv. What is the function of the bank regarding cash management?
v. What are the economy importances of banks?
vi. What are other kinds of service rendered by banks?
vii. What are the effects of environmental and structural change to?

1.4 THE OBJECTIVES OF THE STUDY
The objectives of the study are as follows:
i. To define the term fund management
ii. To identify the various function of commercial banks.
iii. To critically examine fund management in commercial banks.
iv. To appraise the problems encountered by banks in the management of it funds.
v. To ascertain the roles of commercial banks in business development.
vi. To make recommendation as to how commercial bank can manage it funds prudently.

1.5 RESEARCH HYPOTHESIS
In the courses of the research work, the following hypothesis will be tested H0: analysis of funds management do not provide a sound banking system in Nigeria Hi: Analysis of fund management provide sound banking system in Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
It is imperative to mention here that the topic ‘Analysis of Fund Management rare topic’.
This write up will help to receive the mind rating managers to the importance of managing fund as well as suggest to them better techniques to be used in the management of funds.

The study will provide a frame work of knowledge that will assist the existing and potential commercial banks in Nigeria.
Commercial banks will find it useful in developing a good operation system of their banking activities.

The knowledge of the study will no doubt contribute greatly to the mush take about economy as management of cash is a major factor in a country’s economy.