FRAUDS AND FORGERIES ON THE PERFORMANCE OF THE NIGERIAN BANKING INDUSTRY

Abstract

This study focused on Frauds and Forgeries and the Performance of the Nigerian Banking Industry. The research method adopted is the Ex-Post-facto method. Data were sourced from the various publications of the CBN Statistical Bulletins and the Nigeria Deposit Insurance Corporation (NDIC)Publications. These data were analyzed using regression analysis. The period for this study covered between 1994 and 2016. The study established that: the number of reported frauds and forgeries cases has a significant positive on bank performance in Nigeria, the total amount involved in frauds has negative sign and is a significant determinant of the level of bank performance in Nigeria in the period under investigation and the actual losses to frauds does not have significant impact on bank performance in Nigeria. Based on the above findings, the following recommendations are proffered. Accurate and timely reportage of cases of frauds and forgeries activities in the banking sector should be vigorously pursued by bank’s management and regulatory body in Nigeria. This will in no small measure help to reduce and scare from fraudsters and prospective fraudsters from engaging in bank’s fraudulent activities. Finally, in view of the observed inverse relationship between frauds and the performance of the Nigerian banking industry, deliberate efforts with respect to appropriate policies and programs should be made by the respective regulatory authorities in the country to help curtail the incidences of bank related frauds and forgeries.