ABSTRACT
This study is taken to analyze bank fraud and how it is committed by
internal bank staff, external parties or mixed parties, operating independently
or in collusion with others. It examined the effects of fraud on banks and the
entire financial system. Certain research methodology, research design and
strategy were adopted for collection of primary and secondary data used in this
research study. Data analysis and presentation was carried out using Simple
percentages, Ordinary least square Regression analysis, and t-test distribution
statistical analysis and table to test the validity of the formulated
hypothesis. It was found that there is no significant relation between the size
of fraud in bank branch; also revealed is that there is no significant relationship
between the Size/Amount of fraud in a bank and the ‘ age’ of the banks in the
banking sector. The conventional fraud prevention, detection and control
techniques were found to be inadequate. It was revealed that the banking system
has been exposed to fraudulent activities due to avarice and bad management in
such a way that confidence in the industry is in danger of been eroded. The
analysis of the types of fraud and forgeries perpetrated showed (hat the
commonest types were, falsification, forgeries, embezzlement, suppression,
theft, granting of illegal credits, and illegal withdrawals among others.
Following the above, constructive recommendations were advanced and suggestion
for further research studies on certain areas was made.
CHAPTER ONE
1.0 INTRODUCTION
This project study is undertaken to critically evaluate frauds in Banking
sector; types, causes Preventive and control measures. A case study of some
selected banks in Enugu Metropolis. United Bank for Africa (UBA), First Bank of
Nigeria, Union Bank Plc, Mainstreet Bank, will be undertaken.
1.1. BACKGROUND OF STUDY
Since the Research study is on fraud in banking sector, types, causes,
preventive and control measures it will be worthwhile to start with bank and
its origin in Nigeria, before delving into the subject matter proper.
WHAT IS BANK?
Lord
Paget (1966:12) defined a bank or banker as a “corporation or person (or group
of persons) who accept money on current accounts, pay cheques drawn upon such
accounts on demand and collect cheques for customers, that if such minimum
services are afforded to all and sundry without restriction of any kind. The
business is banking business, whether or not other business is under-taken at
the same time” R.S Sayer (1979:1) in his own words defined banks as
institutions whose debt usually referred to as bank deposits are commonly
accepted in final settlement of other debts.
From the above, it could be inferred that before an institution is
regarded as a bank, the principal aspect of its business must consists of
receiving money for the credit of a current account, which the depositor could
withdraw on demand by cheque.
In modern banking where banks have become financial supermarkets
providing a wide variety of services, the above definition will certainly not
be enough. Fortunately, this opinion appears to have received official support
in Nigeria. In the Nigerian Banking Act of 1969, the term bank was interpreted
as meaning “any person who carries on banking business”. Bank Amendment Decree
No 3 of 1970 stated that bank business means “the business of receiving monies
from outside sources as deposits irrespective of the payment of interest and
the granting of money loans and acceptance of credits or the purchase of bills
and cheques or the purchase and sale of securities for accounts of others or
the incurring of obligation to acquire claims in respect of loans prior to
their maturity or the assumption of guarantees and other transactions as the
commissioner may, on the recommendation of the CBN, by order published in the
Federal Gazette designate as banking business”.....
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Item Type: Project Material | Attribute: 134 pages | Chapters: 1-5
Format: MS Word | Price: N3,000 | Delivery: Within 30Mins.
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