Internal Control System and Performance of Banks: A Case Study of Equity Bank Kabala Gala Branch
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Date
2010-03
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, bachelors degree in business administration
Abstract
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.
Description
A Dissertation Submitted to the Faculty of Business and Management in Partial Fulfillment of the Requirement for the Award of a Bachelors Degree in Business Administration of Kampala International University
Keywords
Internal Control System, Banks, Equity Bank Kabalagala Branch