CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The first bank as a commercial bank is a profit making organization it’s objective include profit maximization, maximization of earning per share and maximization of share price through increase virtual banking and other programmers. The level of achievement of there objective is essentially a measure of business efficiency. The need therefore arises for the first bank to rigorously pursue it’s goal by making effective use of all the resources at it’s disposal. Hence it has become ever more important in recent time due to the general economic downtown and sector by the government for the banking to move from one sphere into other areas of commerce and industry which are deemed to be profitable as asset portfolio adequately meet this needs.
However, it should be noted that it is folio but rather, it is mandatory that the organization aims at working with the optimal combination of investment and the financing thereof which would produce the desired result, and this calls for effective management. Bearing in mind that investment induces the killing of an option; the option of productivity investment at any time in the future, the manager of the portfolio should exercise adequate skill and caution an efficient and effective manager would take into consideration. The high volatile and unpredictable nature of the money and capital markets in working out an investment policy and such policy should in be highly flexible so as to absolute the disadvantage by changes in government fiscal and monetary policies.