ABSTRACT
The
research is on the management of fraud in Nigeria Commercial Banks. The main
objective of the study is to identify the causes of fraud in commercial banks.
The researcher analyzed the data collected based on the response from the
questionnaires distributed
The
major findings of the study are:
1. The causes of frauds in commercial bank
includes
a. Poor
management and poor security arrangement
b.
Inadequate staff training
2. The various types of fraud in commercial
banks include:
a. Loan fraud
b. Cheque fraud
c. Advance fee fraud. On the basis of the above findings, the study
concludes that management of fraud in commercial banks is of the great
importance and has a lot of benefit which includes given confidence to the bank
customers that their money is safe, encouraging or attracting local or foreign
investors. Based on the finding, it is recommended that:
- Government should establish
more anti-fraud and anti- corruption agencies to assist in sanitizing the
Nigerian banking system.
- Bank’s management should employ
strategies that will ensure early and prompt detection, prevention and control
of fraud in commercial banks.
TABLE OF CONTENTS
Title
Page………………………………………………………………..i
Approval
page………………………………………………………….ii
Certification……………………………………………………………iii
Dedication………………………………………………………………iv
Acknowledgement……………………………………………………..v
Table of
Content………………………………………………………vi
List of
Tables………………………………………………………….vii
Abstract………………………………………………………………….v
Chapter
One:
- Introduction…………………………………………………….1
1.1 Background of the Study…………………………………….1
1.2 Statement of the Problem……………………………………2
1.3 Objectives of Study……………………………………………3
1.4 Research Questions…………………………………………..4
1.5 Research Hypotheses…………………………………………4
1.6
Significance of the Study…………………………………..5
1.7 Scope of the Study…………………………………………….6
1.8 Limitations of the Study……………………………………..6
1.9 Definitions of Terms…………………………………………..7
1.10:
Historical background of CBN and Commercial
Banks
in Nigeria……………………………………………….9
References
CHAPTER TWO
- Review of Related
Literature……………………………….12
2.1 Origin of Fraud………………………………………………..12
2.2 What is Fraud?……………………………………………………12
2.3 What is Bank
Fraud?……………………………………………15
2.4 Nature and Types of Bank Frauds………………………….16
2.5 major Causes of Fraud in the Commercial
Banks………26
2.6 Implications of Fraud on the Bank and Entire
Economy
of Nigeria
……………………………………………34
2.7 Punishment and Penalties to fraud
Perpetrators………..37
2.8 Fraud Detection, Prevention and
Control…………………40
2.9 CBN Effort to Fraud Control………………………………….9
2.10 Extent of Fraud of Banks…………………………………….59
References
Chapter Three
- Research Methodology……………………………………….63
3.1 Area of the Study……………………………………………..63
3.2 Sources of Data……………………………………………….63
3.3 Population of Study………………………………………….64
3.4 Sample Size Determination………………………………..64
3.5 Instrument used for Data Collection
……………………67
3.6 method of Data Analysis……………………………………68
References
Chapter
Four
4.0 Data Presentation Analysis and
Interpretation………..70
4.1 Analysis of Questionnaires Distribute and
returned….71
4.2 Section A: Demographic Data……………………………….71
4.3 Section B: ……………………………………………………….73
4.4 Hypotheses Testing……………………………………………84
Chapter
Five
5.0 Summary of Finding, Conclusions &
Recommendations.
5.1 Major Findings………………………………………………….95
5.2 Conclusion……………………………………………………….95
5.3 Recommendations……………………………………………..96
Bibliography
Appendix A
Questionnaire B
LIST OF TABLES
Table
4.1: Age Distribution of
Respondents………………………………71
Table
4.2: Data on the Sex Distribution of
the Respondents………71
Table
4.3: Data on Education background ………………………………73
Table
4.4: Data on the martial status of the
respondents…………..74
Table
4.5: Data on Impact of fraud on bank performance……………..74
Table
4.6: Data on the relationship between volume of work &
fraudulent
activity……………………………………………….75
Table
4.7: Data on the impact of poor management and poor security arrangement in
commercial banks…………………………………..76
Table
4.8: Data on the causes of bank fraud………………………………77
Table
4.9: Data on the effectiveness of CBN……………………………….78
Table
4.10: Data on what constitutes the types of fraud……………….79
Table
4. 11: Data on the spate of fraud in commercial banks……………………………………………………………………….79
Table
4. 12: Data on the Control Fraud…………………………………….80
Table
4: 13: Data on what makes up personal control………………….81
Table
4:14: Data on the constitution of Accounting Control ….82
Table 4: 15:
Data on Inventory Control…………………………………….83
Table
4: 16: Data on respondents response on how fraud can be
detected
and control…………………………………………………….84
Table
4: 17: Respondents responses on whether poor management and poor security arrangement
can cause fraud………………………87
Table
4.18: Respondents responses on the effectiveness of CBN……90
Table
4.19: respondent response on the spate of fraud in commercial
banks………………………………………………………………………92
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Over the years, irregularities have been
the problems of commercial banks. The term irregularities are used to refer to
intentional distortion of financial statement and misappropriation of assets
for whatever purpose. Fraud is one type of irregularities. Fraud, in auditing
guideline, is used to refer to irregularities involving the use of criminal
deception to obtain unjust or illegal advantages.
Fraud may entail that proper accounting
records have not been properly maintained, it may also point out that some
internal control system are not effective and could not form a reliable source
of information for an auditor. Existence of fraud in a financial statement
endangers it from showing a true and fair view and complying with the provision
of the companies and Allied Matter Acts (CAMA) 1990.
Therefore, fraud in banks must be looked
at generally as “acts that involves the loss of assets by banks through dishonest
and deceitful means. The fraudster intentionally but dishonestly benefit
himself to the detriment of the bank, the bank staff, bank customers and any other
member of the public via banking operations. Fraud can be committed by bank
staff, bank customers or a third party that is non-customer (Eze, 2004).
- STATEMENT OF THE PROBLEM
MANAGEMENT OF FRAUDS IN NIGERIAN COMMERCIAL BANKS: AN INVESTIGATION OF THE ROLE OF CBN
