LEGAL IMPERATIVES OF COMBINATION OF ACCOUNTS IN THE BANKING SECTOR: A CRITICAL APPRAISAL

Abstract

The  Banking  Sector  is  the  most  critical  aspect  of  any  economy,  its  growth  and  operations, vis-à-vis its challenges and short-comings resonates on the direction the economyshould go loans and overdrafts are critical elements in banking business, default in repayment of these facilities are equally experienced in making these advances and in anticipation of these short comings,  banks  do  put  in  place  legal/administrative  measures  to  recover  these  debts. Combinations  of  accounts  becomes  one  of  such  measures.  This  paper  will  therefore  do  an assessment  of  the  bankers  right  to  combine  two  or  more  accounts  for  the  purpose  of extinguishing  a  customers  liability.  It  will  also  examiner  further  regulatory  framework  that condones or justifies such action.Finally it shall recommendmeasures that should be taken to strengthen these concepts with a view to fine tuning its operations to go in line with global best practices