THE EFFECT OF BANK FRAUD ON THE ECONOMIC GROWTH OF NIGERIA (A STUDY OF UNITED BANK FOR AFRICA PLC)

Sally Okwuchi Uwakaeme

Abstract


Frauds are serious issues that can cause significant financial and non-financial harm to the growth of a nation’s economy. The main objectives of this study is to determine the effects of bank fraud in the growth of Nigeria Economy.  Also to examine the effectiveness of the internal control system of banks in Nigeria.  In order to avert the problems highlighted above, primary and secondary data are employed to broaden the scope of the study primary data are sourced from questionnaire responses.  This provided data for the validation of the hypotheses tested with the use of Karl Pearsons coefficient of correlation.  The test revealed as follows: (i) fraud has an adverse effect on bank performance.  (ii) Bank fraud has effect on the growth of Nigerian economy.  The study concludes that an effective internal control system will help tremendously in the detection and prevention of frauds in the banking industry.  The researcher recommends the following (a) balancing of bank’s books of accounts as unbalanced books provide fertile ground for fraud.  (b) ensuring proper custody of vital bank equipments and bank documents.  (c) the use of close circuit television surveillance should be implemented in all banking offices.


Keywords


Banking Industry, Fraud, Nigeria Economy and Internal Control

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