ABSTRACT
The purpose of this study is to identify and the impact and solution of Bank fraud an other sharp practice on the Banking Industry in Nigeria.
The research is a primary research in the sense that it is established to investigate the causes and other sharp practices in Banking Industry in Nigeria.
The research covers the staff of Nigeria United Bank for Africa Plc. In this research, the work of many expends in the field of the study were reviewed. This enables the researcher to know more about the various ideals of many theorists about the topic.
Data gathered were analyzed in different tables using percentage where necessary an the data were interpreted as well.
The research reveals that the number of Banks involved in friends and forgeries cases has been on decline over the past few years. Other findings were there is decrease in amount involved have been on the increase over the time and this across all the cadre of staff
Conclusion was drawn on the data collected and the recommends were therefore provided as well:
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The level of fraud in the day Nigeria has assumed an epidemic dimension. It has eaten deep in to very aspect of a having to the extent that a three-year-odd-child talks about 419.
Fraud id defined as a deliberate act of deceiving somebody in all illegal way in order to make to obtain goods belonging to another party. For an action to constitute Fraud there must be a dishonest intention and the action, must be intended to benefit the preparation to the determine of another person.
Going by this definition fraud in Nigeria economy cannot be restricted to the bank alone. Fraud in the Banks is not know, they are as old as the Industry itself. However, like in the greater society they have become one of the most intractable problems of modem day banking.
Other sharp practices that is being perpetrated in the banking industry includes, embezzlement and theft, miss use or harm the asset of the bank, manipulation of figures, forgeries but all these can be compassed into Fraud that is the word “Fraud” can capsulate all these acts.
Fraud can be committed by the employers, customer and management of the bank concerned or others operating independently or in conspiracy with others inside or outside the financial institution.
The historical trends and analysis of the banking industry in Nigeria is discussed to assist in the understanding of the philosophies that will guide prospective reader in the extent to the bank Frauds had been in place.
Modern banking in Nigeria dates back to the early colonial period. This is as the period when the activities of transaction of the colonial government the deadline of the bater system of frauds and the increasing acceptance of British silver coins, all desired for constitutions in the form of commercial banks for safety and transmission of frauds, the importations and distribution British coin, and provision of credit facilities to the government an the trading companies (usage 1981).
It was for this purpose in 1872 that the Africa Banking Corporation of England was invited to open a branch office based in Liverpool and West African ports.
But due to some difficulties, the bank was taken over in 1894 by Elder Depicter and Company with a name as Bank of British West African (now First Bank of Nigeria Plc ) Registered in London, the bank started with a authorized capital of $100,000. Due to the success of the bank of British West Africa other organizations soon began to show interest in banking opportunities in the Country. This led to the establishment of the Anglo-African Bank, later known as banks of Nigeria, but which became liquidated other were the colonial bank which changed its name of Barcley bank and company (now the Union Bank of Nigeria Plc 1919) also British and French bank 1948 (now the United bank for Africa Plc) and such other foreign owned banks.
However, these banks do not serve any useful purpose for Nigeria rather they serve as a dear channel for the economies of their promoters who are most importers and whose activities were based on the decision taken at their overseas head offices.
In other word the development of conventional banks only served as instruments of explosion and expropriation of resources from the Nigeria economy and as such were inconsistent wish local needs, interest and aspirations to help develop the nation economy.
These among other factors led to the birth of many locally owned and manage indigenous banks, between 1933 to the period of 1952, as much as twenty-five banks were established by Nigerians. Buts it is very sad that out of these banks only four survived beyond this period, they are National bank of Nigeria established by Nigerians in 1933, Agbonmage bank now Wema Bank Plc established in 1945. The present African Continental Bank Plc established in 1945 and Merchant bank (now default) established in 1952. Thus the period 1892 to 1952 was described as the free banking era.
The period 1952 to 1991 witnessed series bank regulations measure ranging from the Banking ordinance of 1952. Central bank ordinance of 1958 and its subsequent amendments to the latest Central Bank of Nigeria decree 24 of 1991 and banks other financial decree 25 of 1991. The essence of these legislations was to stream line and regulate the performance of the banking industry.
Thus from 1976 to 1986, the number of banks increases from twenty-one comprising of fifteen commercial and cooperative banks and six merchant banks to fifty-one banks made up to twenty-nine commercial banks, and twelve merchant banks. These period was characterized with the establishment of new generation of private banks owned by Nigerian and Foreign private investment especially the state owned banks.
Another period that worth mentioned was the deregulation era between 1986 and 1992 which was witness by rapid increase in the number of banks from forty-one banks in 1986 to one hundred and twenty in 1992 which was made up to sixty-six commercial and banks, fifty-four merchant banks.
As earlier mentioned in the introducing bank, Fraud had its origin from the day of the banking industry started in the country and in as much as the federal government through central bank attempt to solve this problem among others by promulgating different banking legislation, titles or no success was achieved in this regard.
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