BUDGETARY CONTROL: AN EFFECTIVE TOOL FOR PLANNING AND CONTROL IN THE BANKING INDUSTRY

ABSTRACT: This study was carried out to examine budgetary control as an effective tool for planning and control in the banking industry using guarantee trust bank (GTB) as a case study. Specifically, the study  determine whether budgets are set and pursued in banking industries. The study also, investigate the management control practice in terms of budgets being tool for management control. The study further,  identify the reasons why budgets are not often realized. More so, the study  find the effectiveness of budgeted control in actualizing the budgeted results. Lastly ,the study  encourage banking industries to seek the realization of their budgets through the efficient application of planning and control. The study used a descriptive analysis. The findings revealed that budget is an aid to the achievement of corporate objectives in banking industries. Also,  budgets are often attainable in banking industries, furthermore,  budgets are often pursued in banking industries. Lastly, budget provides the means of measuring, viewing and controlling  can help in control and planning  the operation of banks. The study hereby recommend that  since departments participate in budgetary control process, the organizations should use budgets to motivate employees to do better, forecast the future, to assist in control, as a means by which management communicates to other levels of department and as a means of performance appraisal. This will in turn improve the financial performance of the organizations. Also,  since control and budgetary controls are not intimately linked with considerations of labor controls they should be employed by the firm to improve financial performance, adopt long range planning and long range forecasting techniques in budget planning at banks.