The banking industry in nigeria

Thesis Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p><strong>1.1 &nbsp; &nbsp; &nbsp; </strong><strong>BACKGROUND OF THE STUDY</strong></p><p>With an award match to becoming an industrialized nation, Nigeria is witnessing true emergence of human resources as professional, which made possible &nbsp;the establishment of service industries and other business organizations. &nbsp;This belief was rather so strong &nbsp;that the urge to provide financial services can no longer be overlooked. &nbsp;to accelerate economic growth and economic development both government and some organized private groups were issued licenses to operate banks, in addition to a few banks that were already into business to operate systematic financial services.</p><p>these banks employed young men and women, but &nbsp;like every aspect of human endeavour have their challenges facing the banking industry and indeed all industries is the incidence of fraud. &nbsp;Bakere (2002.1) observed that the incidence of frauds in the Banking Industry has in the recent. &nbsp;Past posed a very serious threat to the very existence of financial institutions and is a matter of serious concern to the regulatory authorities and the &nbsp;Banking public.</p><p>Despite the stringent measures put in place by monetary authorities and internal control measures to check the activies of fraudsters, frauds in &nbsp;the banks to be on the increase. &nbsp;Edozie as observed by Adebayo (2001:5) stated that available statistics reveal that thirdly-one banks reported that they experienced frauds and forgery cases for the &nbsp;period (January –March 2002).</p><p>Banks are institutions known to operate on the centre –pin of public confidence. &nbsp;today that concept &nbsp;no longer holds as bankers themselves either initiate frauds or partakes deeply in fraudulent activities against their banks (employers).</p><p>According to Nigerian Dposit Insurance /corporation (NDIC) Annual Reports (1999:9), most of those banks were run around by a few greedy directors and officials who perpetrated frauds and all kinds of unethical practices against their institutions. &nbsp;This is an aberration that continues to erode public confidence in banks.</p><p>this scenario has singularly contributed to the liquidation of many banks. &nbsp;Agbata (1998:13) observed that one cannot avoid considering the fact that the distress in the &nbsp;banking industry &nbsp;was occasioned by fraud.</p><p>Now that cases of fraud have been established in the &nbsp;banks, the need therefore arise to find out problems associated with fraud, It’s impact on the macro-economy and how these problems are being tackled, hence the need for this study.</p><p><strong>1.2 &nbsp; &nbsp; &nbsp; </strong><strong>STATEMENT OF RESEARCH PROBLEMS</strong></p><p>Generally speaking, movements in the economy of any nation result from the inter-play of money and &nbsp;other economic variables. &nbsp;In Nigeria, the impacts of money and other banking &nbsp;have been the dominant factors determining macro-economic performance. Despite this unique position of banks between other sectors of the economy, banks (especially commercial banks) are faced with a good number of economic crises. &nbsp;Notably among the cases is fraud.</p><p>As a result there has been a lot of criticisms from the investing public about the non-commitment and dedication to duty by Nigerian bankers. &nbsp;This stems from the fact that distress in the banking industry originated fraud, which was occasioned by bankers.</p><p>Directors and management of banks are also criticized of their inability to direct and control men and materials effectively. &nbsp;Poor accounting or reconciliation procedures may give an employee the opportunity to spot a weakness and devise a plan &nbsp;to take advantage of it. &nbsp;This is due to the weakness of internal controls in a bank.</p> <br><p></p>