BANK FRAUD AND ITS EFFECT ON BANK PERFORMANCE IN NIGERIA

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 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 performance of banks. Data for the analyses were obtained from primary data through questionnaires and secondary data from Nigeria Deposit Insurance Corporation (NDIC) Annual Report. Four hypotheses were formulated to access the impact of looting of fund, social and environmental factors, motivation and government effort on 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 effort and its agencies have negatively impacted on combating fraud in Nigeria and environmental or social factors have negative impact on bank fraud. On the basis of findings, it is recommended that government should make their impact to be felt in combating fraud by establishing more agencies for combating frauds. Those managers and director involved in looting of fund should be persecuted to serve as a deterrent to subsequently once. In addition, bank staff should be properly screened to test their morality and integrity before recruitment. Adequate internal control system should also be establish to have check and balances among bank staff. It is envisaged that if all these are put in place, fraud will be reduced to its barest minimum thereby restoring confidence to bank customers.

 
TABLE OF CONTENTS
Cover page 
Title page 
Approval page 
Certification 
Dedication
Acknowledgements 
Abstract 
List of appendixes 
List of tables 


Table of contents 

CHAPTER ONE: 
INTRODUCTION
1.1  Background of the study 
1.2  Statement of the problem  
1.3  Objectives of the study 
1.4  Research Questions 
1.5  Research hypotheses 
1.6  Scope of the study 
1.7  Significance of the study 
1.8  Limitation of the study
1.9  Definition of terms


CHAPTER TWO: 
REVIEW OF RELATED LITERATURE
2.1   Empirical study 
2.2   Theoretical framework 
2.2.1 Causes of bank fraud 
2.2.2 Categories of bank fraud 
2.2.3 Types of fraud 
2.2.4 Fraud and its effect on Nigerian banks
2.2.5 Government attempt to prevent bank fraud
2.2.6 Ways to prevent fraud
2.2.7 Fraud resolution 


CHAPTER THREE:  
RESEARCH METHODOLOGY
3.1 Research design
3.2 Nature and sources of data 
3.3 Population of the study 
3.4 Sample size determination 
3.5: Technique of analyses 

CHAPTER FOUR: 
PRESENTATION AND ANALYSIS OF DATA
4.1 Data presentation 
4.2 Data analysis 
4.3 Test of hypotheses
4.4 Interpretation of result ………………………………………….. 46


CHAPTER FIVE: 
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1: Summary of findings 
5.2: Conclusion
5.3: Recommendations 
     Bibliography 
     Appendix I 
     Appendix II 
     Appendix III


List of Appendixes
Appendix 1:  
Letter to respondents

Appendix 2: 
Questionnaire to some staff

Appendix 3: Chi square table

LIST OF TABLES

Table 2.2.4.1: 
Total amount involved in fraud and forgeries

Table 2.2.4.2: 
Ten banks with highest fraud cases


Table 2.2.4.3: 
Categories of banks staff involved in fraud and forgeries

Table 4.1: 
Analyses of questionnaires issued to respondents

Table 4.3.1: 
Test of hypothesis 1 with related question


Table 4.3.2: 
Test of hypothesis 2 with related question


Table 4.3.3: 
Test of hypothesis 3 with related question


Table 4.3.4: 
Test of hypothesis 4 with related question

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APA

Amobi, H. (2018). BANK FRAUD AND ITS EFFECT ON BANK PERFORMANCE IN NIGERIA. Afribary. Retrieved from https://afribary.com/works/bank-fraud-and-its-effect-on-bank-performance-in-nigeria-7781

MLA 8th

Amobi, Hills "BANK FRAUD AND ITS EFFECT ON BANK PERFORMANCE IN NIGERIA" Afribary. Afribary, 29 Jan. 2018, https://afribary.com/works/bank-fraud-and-its-effect-on-bank-performance-in-nigeria-7781. Accessed 25 Apr. 2024.

MLA7

Amobi, Hills . "BANK FRAUD AND ITS EFFECT ON BANK PERFORMANCE IN NIGERIA". Afribary, Afribary, 29 Jan. 2018. Web. 25 Apr. 2024. < https://afribary.com/works/bank-fraud-and-its-effect-on-bank-performance-in-nigeria-7781 >.

Chicago

Amobi, Hills . "BANK FRAUD AND ITS EFFECT ON BANK PERFORMANCE IN NIGERIA" Afribary (2018). Accessed April 25, 2024. https://afribary.com/works/bank-fraud-and-its-effect-on-bank-performance-in-nigeria-7781

Document Details
Field: Banking and Finance Type: Project 71 PAGES (12604 WORDS) (doc)