An Examination of Ethical Dilemmas in the Nigerian Banking Sector

Abstract

Banks in the modern day society, almost everywhere, play a multifarious role, which includes unifying and intermediary roles between the fund-supplying and fund-demanding sides of the society, executing savings and investment functions. Considering the requirements for protection of the rights and interests of innumerable depositors, establishment of stability and confidence in financial markets along with requirements for economic development, banks are expected to ethically pursue their operations in compliance with the principles of integrity, impartiality, reliability, transparency, social responsibility and controlling money laundering. The objective of this paper is to examine ethical dilemmas in the Nigerian banking sector. The aim is to assess the level of unethicality of some Nigerian banking practices and the extent to which they affect the banking ethical climate. Data was collected from primary source through questionnaire and analysed using Kendall coefficient of concordance. The study found that unethical behaviours are prevalent in the Nigerian banking sector, however, the level at which and the extent to which they affect Nigerian banking climate vary. The study recommended that all stakeholders in the banking industry, namely the licensing authorities, shareholders, sponsors/directors, top management, the regulators, and the government, should be up and doing for ethical dilemmas in the Nigerian banking sector to be managed.