ABSTRACT
This study on “The Nature of Banking Fraud in Nigeria” (1990 to 2008) covered the period Nigeria Deposit Insurance Corporation (NDIC) took over the management and control of 24 distressed banks, liquidation of 26 Banks in 1998 and the re-capitalization of banks in 2005 by the Central Bank of Nigeria (CBN). These were designed to analyse the financial history of fraud in Nigeria. The technique of ordinary least square (OLS) was used to analyse the data on the relationship between Returns on fraud by insured banks in Nigeria between 1990 to 2008 and Deposit liabilities of insured banks within the period (1990-2008). The model was measured and analysed to determine the shift of the function overtime. The Regression result of the model showed that Fraud Intercept was positive during the period of the study (1990-2008), which revealed that in absence of the level of Deposit liabilities of insured banks, fraud must still persist in the financial system. The study, therefore, recommended among other things that, the prevention, control and detection of frauds should be a collaborative effort of banks, their customers, the public and the government including relevant agencies. Moreover, fraud in the financial system, should as much as possible, be minimized as it kills the institutions and destroys the economy of a nation.
TABLE OF CONTENTS
Title page – – – – – – – – i
Certification- – – – – – – – ii
Dedication- – – – – – – – iii
Acknowledgments- – – – – – – iv
Abstract- – – – – – – – – vi
CHAPTER ONE:
1.1 Introduction- – – – – – – 1
1.2 Statement of Problem- – – – – 4
1.3 Research Questions- – – – – – 4
1.4 Statement of Hypotheses- – – – – 5
1.5 Objective of the Study- – – – – 6
1.6 Scope of the Study- – – – – – 6
1.7 Significance of the Study- – – – – 7
1.8 Definition of Terms- – – – – – 8
1.9 Assumptions and Limitation of the Study- – 10
CHAPTER TWO: LITERATURE REVIEW
2.1 Problem of Frauds in Banks- – – – 11
2.2 Universality Fraud- – – – – – 12
2.3 Causes of Banking Fraud in Nigeria- – – 13
2.4 Nature and Types of Fraud- – – – 21
2.5 Internal Control- – – – – – 31
2.6 Nigeria Deposit Insurance Corporation
(NDIC) – – – – – – – – 34
2.7 The Measure of Distress- – – – – 38
2.8 Measure of Solvency- – – – – 39
2.9 Management of Bank Distress- – – – 40
2.9.1 Policy Consideration in Management of
Distressed Bank- – – – – – 42
2.9.2 Operational Consideration- – – – 44
2.10 Bank Rehabilitation- – – – – – 48
References- – – – – – – 56
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Nature and Sources of Data- – – – 57
3.3 Data Collection Techniques/Sources- – 58
3.4 Specification of the Model- – – – 59
3.5 Description of Variables in the Model- – 61
3.6 Data Analysis- – – – – – – 61
CHAPTER FOUR: ANALYSIS OF DATA AND PRESENTATION OF RESULTS
4.1 Introduction- – – – – – – 62
4.2 Diagnostic Tests of the Model- – – – 67
4.3 Analysis of Research Questions- – – 70
4.4 Testing of the Hypothesis of the Model- – 72
4.5 Nature of Banking Fraud in Nigeria- – – 73
CHAPTER FIVE: SUMMARY OF FINDINGS RECOMMENDATIONS AND CONCLUSION
5.1 Summary of Findings- – – – – 84
5.2 Recommendations- – – – – – 90
5.3 Conclusion- – – – – – – 94
Bibliography- – – – – – – 96