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Bank fraud and its effect on banks performance in Nigeria

 Department:Banking and Finance  
 By:usericon Haybee4u  

 Project ID: 8035
 Rating:  (5.0) votes: 1
   Price:₦4000
Abstract
Fraud is an epidemic dimension that has eaten deep into the banking sector as well as the entire economy. Its devastating effect manifests itself in the deteriorating balance sheet of banks as well as in economic backwardness. As a result, measures to eradicate fraud in the banking sector become a central focus of the government and the monetary authorities. It was against this backdrop that this study was aimed at providing empirical evidence on the effect of fraud on the performance of banks. Data for the analyses were obtained from primary data through questionnaires and secondary data from the Nigeria Deposit Insurance Corporation (NDIC) Annual Report. Four hypotheses were formulated to assess the impact of looting of funds, social and environmental factors, motivation and government effort on the effect of fraud on banks' performance in Nigeria. These were tested with simple percentages and chi-square (x2) statistical technique at 5% significance level. Results showed that lack of adequate motivation is not a major cause of fraud in banks, looting of fund by bank managers and directors constitutes the major form of fraud in Nigeria, government efforts and its agencies have negatively impacted on combating fraud in Nigeria and environmental or social factors have a negative impact on bank fraud. On the basis of the findings, it is recommended that the government should make its impact to be felt in combating fraud by establishing more agencies for combating fraud. Those managers and directors involved in the looting of funds should be persecuted to serve as a deterrent to subsequent ones. In addition, bank staff should be properly screened to test their morality and integrity before recruitment. An adequate internal control system should also be established to have checks and balances among bank staff. It is envisaged that if all these are put in place, fraud will be ......
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