FRAUD AND ITS EFFECT ON BANKING INDUSTRY: A STUDY OF SELECTED BANKS IN NIGERIA

Authors: Ezu, Gideon Kasie* & Anyanwu, Felicia Akujinma

ABSTRACT

This research work investigates Fraud and its effect in the banking industry: A study of selected banks in Nigeria. The main objective of this study is to determine the effects of Fraud and financial crimes on the Nigerian banking industry. Three research questions and three research hypotheses were raised. A sample size of 80 was utilized for the study. Primary data gotten from a well-structured research questionnaire was used for the study. The data were analyzed using frequencies, percentages, weighted mean, and z-test. The analysis was conducted based on the objectives of the study, which include; To determine the effects of fraud and financial crimes on the profitability of the Nigerian banking industry and examining the effects of fraud and financial crimes on the bank customers’ confidence in the Nigerian banking industry. From the analysis it was established that; Fraud and financial crimes have a significant effect on the profitability of the Nigerian banking industry. Fraud and financial crimes negatively affect the confidence of bank customers in the Nigerian banking industry. The study recommends amongst others that Nigerian Banks must follow a global pattern by identifying and reporting transactions of a suspicious nature to the financial intelligence unit in the respective country.

Keywords: fraud, stability, crime, profitability.

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