An Assessment of the Influence of Global Banking Regulations on Nigerian Retail Banking: A Study of FCMB, Edo State
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Background of the Study:
Foreign exchange policies are critical in shaping the operations of retail banks, influencing transaction costs, liquidity, and overall financial stability. In Enugu State, Fidelity Bank operates in a complex economic environment where fluctuations in foreign exchange rates can have significant implications for day-to-day banking activities. These policies, which govern currency conversion, cross-border transactions, and exposure to exchange rate risk, directly affect the bank’s pricing strategies, risk management practices, and customer service delivery (Ibrahim, 2024). Fidelity Bank’s ability to navigate volatile foreign exchange markets is crucial for maintaining customer confidence and ensuring profitability. The bank employs a range of strategies, including hedging and diversification, to mitigate the adverse effects of currency fluctuations. However, the rapidly changing global economic landscape and evolving regulatory frameworks often introduce uncertainties that can disrupt retail banking operations. This study examines the impact of foreign exchange policies on the operational performance of Fidelity Bank, analyzing how exchange rate volatility and regulatory adjustments influence transaction efficiency, cost structures, and customer satisfaction. By drawing on recent data and case studies from 2023 to 2025, the research aims to provide insights into the challenges and opportunities associated with managing foreign exchange risk in retail banking (Okafor, 2023).
Statement of the Problem:
Fidelity Bank in Enugu State faces persistent challenges in managing the risks associated with foreign exchange policy fluctuations. Volatile exchange rates, coupled with frequent regulatory changes, complicate the bank’s ability to price transactions accurately and maintain liquidity. These challenges lead to increased operational costs, reduced profit margins, and uncertainty in customer pricing. Additionally, the complexities of foreign exchange regulations can result in inefficiencies and delays in processing cross-border transactions, negatively impacting customer satisfaction. The bank’s risk management strategies, while robust, are sometimes insufficient to fully mitigate the adverse effects of rapid currency fluctuations. This disconnect between policy and practice creates operational vulnerabilities that may compromise the bank’s stability and competitiveness. This study seeks to identify the key challenges that Fidelity Bank faces in managing foreign exchange risk, evaluate their impact on retail banking operations, and propose strategies to improve risk mitigation and operational efficiency in the face of fluctuating foreign exchange policies (Chinwe, 2023).
Objectives of the Study:
• To assess the impact of foreign exchange policies on retail banking operations at Fidelity Bank.
• To identify challenges in managing currency risk and transaction processing.
• To recommend strategies for enhancing risk management and operational efficiency in foreign exchange transactions.
Research Questions:
• How do foreign exchange policies affect the operational performance of Fidelity Bank?
• What challenges arise from currency volatility and regulatory changes?
• What measures can mitigate the adverse effects of foreign exchange fluctuations?
Research Hypotheses:
• H₁: Volatile foreign exchange rates significantly increase operational costs in retail banking.
• H₂: Inadequate risk management strategies exacerbate the impact of currency fluctuations.
• H₃: Enhanced hedging and process automation improve operational efficiency in foreign exchange transactions.
Scope and Limitations of the Study:
This study focuses on Fidelity Bank’s foreign exchange operations in Enugu State, using transaction data, risk management reports, and customer feedback. Limitations include external economic fluctuations and evolving regulatory environments.
Definitions of Terms:
• Foreign Exchange Policies: Regulations governing currency transactions and exchange rate management.
• Retail Banking Operations: Day-to-day financial transactions and services provided to individual customers.
• Currency Volatility: Fluctuations in exchange rates over time.
The Effectiveness of Internal Auditing in Risk Management in Retail Banking: A Case Study of Access Bank, Rivers State
Background of the Study:
Internal auditing is a critical component of risk management in retail banking, providing independent assurance on the effectiveness of internal controls, compliance, and operational efficiency. At Access Bank in Rivers State, internal audits are conducted regularly to identify vulnerabilities, assess compliance with regulatory requirements, and recommend corrective actions. Effective internal auditing not only helps prevent fraud and financial mismanagement but also supports strategic decision-making by highlighting areas of improvement (Ibrahim, 2024). The auditing process encompasses financial, operational, and compliance audits, with a focus on ensuring that risk management practices are robust and aligned with the bank’s overall objectives. Access Bank has invested in modern auditing technologies and training programs to enhance the capabilities of its internal audit teams. However, challenges such as limited resources, potential conflicts of interest, and rapid changes in the regulatory environment can hinder the effectiveness of internal audits. This study investigates how internal auditing contributes to risk management at Access Bank, analyzing its impact on operational performance, compliance, and overall risk mitigation. By reviewing audit reports, interviewing internal auditors, and collecting performance data from 2023 to 2025, the research aims to provide insights into best practices and identify areas where internal auditing can be further strengthened to support retail banking operations (Okafor, 2023).
Statement of the Problem:
Despite comprehensive internal auditing practices, Access Bank in Rivers State continues to face challenges in fully mitigating operational and compliance risks. In some cases, limitations in audit scope and resource constraints have led to gaps in risk detection and monitoring. The rapidly changing regulatory environment and the complexity of modern banking operations often outpace the bank’s internal auditing processes, resulting in delays in identifying and addressing emerging risks. Additionally, potential conflicts of interest and insufficient follow-up on audit recommendations can undermine the overall effectiveness of the internal audit function. These issues compromise the bank’s ability to prevent fraud and maintain robust risk management, ultimately affecting financial stability and customer trust. This study seeks to identify the operational challenges that hinder the efficacy of internal auditing at Access Bank, assess their impact on risk management outcomes, and propose strategic improvements to enhance audit effectiveness. By addressing these challenges, the research aims to ensure that internal auditing processes are better aligned with the bank’s risk management objectives, thereby strengthening overall operational resilience (Chinwe, 2023).
Objectives of the Study:
• To evaluate the role of internal auditing in risk management at Access Bank.
• To identify challenges that limit the effectiveness of internal audits.
• To recommend strategies for improving the internal audit function and risk mitigation.
Research Questions:
• How effective is internal auditing in mitigating risks at Access Bank?
• What challenges impede the internal audit process?
• What measures can improve the effectiveness of internal audits in retail banking?
Research Hypotheses:
• H₁: Effective internal auditing significantly reduces operational risks.
• H₂: Resource limitations negatively affect the scope and impact of internal audits.
• H₃: Enhanced follow-up and independent review processes improve audit effectiveness.
Scope and Limitations of the Study:
This study focuses on the internal auditing practices at Access Bank in Rivers State, drawing on audit reports, performance metrics, and auditor interviews. Limitations include potential biases in internal assessments and evolving regulatory demands.
Definitions of Terms:
• Internal Auditing: Independent evaluation of an organization’s internal controls, risk management, and governance processes.
• Risk Management: The process of identifying, assessing, and mitigating risks in banking operations.
• Operational Efficiency: The effectiveness with which a bank manages its processes and controls
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