Effect of Fraud Management Practices on Non- Financial Performance of Selected Deposit Money Banks in Lagos State, Nigeria

  • Segun Fakunmoju FOUNTAIN UNIVERSITY, OSOGBO, NIGERIA
  • Fasola Olukayode
Keywords: Bank operational performance, Bank efficiency, Detective fraud management, Preventive fraud management, Responsive fraud management

Abstract

The increasing trend of declined in non-financial performance of banks in recent years pose serious threats to the stability and survival of financial and real sectors and banks in particular. Studies have shown that most deposit money banks in Nigeria have experienced declined in non-financial performances due to poor fraud management practices which have resulted in financial losses to banks and loss of public confidence in the banking sector. The study found out that fraud management practices have positive and significant effect on bank efficiency and operational performance of the selected deposit money banks with (P<5%). The study concluded that fraud management practices have effect on bank operational performance and efficiency deposit money banks in Lagos State, Nigeria. The study recommended that management of banks should exert collective efforts in identifying the ideal mix of effective and efficient fraud management practices that matches their banking business scope so as to achieve targeted operational performance and bank efficiency.  

References

Abdulrasheed, A., Babaita, I. S., & Yinusa, M. B. (2012). Fraud and its implications for bank performance in Nigeria. International Journal of Asian Social Science, 2(4), 382-387.
Adetoso, A. J., & Akinselure, O. P. (2016). Fraud control and fraud prevention in Nigerian banking industry (A study of selected banks in Nigeria). International Journal of Research in Finance and Marketing, 6(12), 66-83.
Akinyomi, O. J. (2012). Examination of fraud in the Nigerian banking sector and its prevention. Asian Journal of Management Research, 3(1), 182-194.

Amanze, B. C. & Onukwugha, C. G. (2017).Loan fraud detection system for banking industries in Nigeria. Using data mining and intelligent agents: The way forward. International Journal of Innovative Research in Technology, Basic and Applied Sciences, 4(1), 1-7.
Arvid, O. I. H., & Cornelia, B. (2012). The impact of fraud prevention on bank-customer relationships. International Journal of Bank Marketing, 30(5), 390-407.
Bierstaker, J. Brody, R.G. & Pacini, C. (2006).Accountant’s perception regarding fraud detection and prevention methods. Managerial Auditing Journal, 21(5), 520-535.
Enofe, A. O., Abilogun, T. O., Omoolorun, A. J., & Elaiho, E. M. (2017). Bank fraud and preventive measures in Nigeria: An empirical review. International Journal of Academic Research in Business and Social Sciences, 7(7), 40-51.
Fatoki, J. O. (2015). Strategies for dealing with fraud and corruption: An overview of Nigerian banking industry. International Journal of Economics, Commerce and Management, 3(4), 1-15.

Fadipe-Joseph, O. A., & Titiloye, E. O. (2012). Application of continued fractions in controlling bank fraud. International Journal of Business and Social Science, 3(9), 1-12

Gitau, E. W., & Samson, N. G. (2016). Effect of financial fraud on the performance of commercial banks. A case study of tier 1 banks in Nakuru town, Kenya. International Journal of Economics, Commerce and Management, 4(12), 142-157.

Idowu, A. (2009). An assessment of fraud and its management in Nigeria commercial banks. European Journal of Social Sciences, 10(4), 89-97.

Ikpefan, O. A. (2006). Growth of bank frauds and the impact on the Nigerian banking industry. Asian Journal of Business Management, 12(7), 1-25.
Inaya, L., & Isito, E. O. (2016). An empirical analysis of social impact of fraud on the Nigerian banking industry. Research Journal of Finance and Accounting, 7(4), 12-17.
Kanu, S. I., & Okorafor, E. O. (2013). The nature, extent and economic impact of fraud on bank
deposits in Nigeria. Interdisplinary Journal of Contemporary Research in Business, 4(9), 253-265.

Kawugana, A., & Faruna, F. S. (2018). Fraud prevention in the Nigerian banking industry. IIARD International Journal of Banking and Finance Research, 4(1), 32-48.

Khanna, A., & Arora, B. (2009). A study to investigate the reasons for bank frauds and the implementation of preventive security controls in Indian banking industry. International Journal of Business Science and Applied Management, 4(3), 1-12.
Kiragu, N. D., Gikiri. W. L & Iminza, N.W (2015). Bank size and occupational fraud risk: Empirical evidence from commercial banks in Kenya. European Journal of Business Management, 2(1), 189-404.

Kinyua, L. W. (2011). Strategic response of equity bank to fraud related risks. Unpublished MBA Thesis. Nairobi. University of Nairobi.

Kolapo, F. T., & Olaniyan, T. O. (2018). The impact of fraud on the performance of deposit money banks in Nigeria. International Journal of Innovative Finance and Economics Research, 6(1), 40-49.

Njanike, K., Dube, T., & Mashayanye, E. (2009). The effectiveness of forensic auditing in detecting, investigating, and preventing bank frauds. Journal of Sustainable Development in Africa, 10(4), 405-425.

Odi, N. (2013). Implication of fraud on commercial banks performance in Nigeria, International
Journal of Business and Management, 8(15), 144-150.

Olay, C. O., & Dada, R. A. (2017). The roles of auditors in fraud detection and prevention in Nigeria deposit money banks: Evidence from Southwest. European Scientific Journal, 13(31), 290-306.

Owolabi, S. A. (2010). Fraud and fraudulent practices in Nigerian banking industry. An International Multi-Disciplinary Journal Ethiopia, 4(3b), 240-256.
Rahman, R. A., & Anwar, I. S. K. (2014). Effectiveness of fraud prevention and detection techniques in Malaysia islamic banks. Procedia – Social and Behavioral Sciences, 145, 97-102.
Sang, M. J. (2012). Determinants of fraud control measures in commercial banks: A survey of selected commercial banks in Nakuru town, Kenya. International Journal of Science and Research, 3(10), 2178-2183.

Uchenna, C., & Agbo, J. C. (2013). Impact of fraud and fraudulent practices on the performance of banks in Nigeria. British Journal of Arts and Social Sciences, 15(1), 12-28.
Uwaoma, I., & Ordu, A. P. (2015). The impact of internal controls on financial management: a case of production companies in Nigeria. International Journal of Economics, Commerce and Management United Kingdom, 3(12), 103 -133.
Zuraidah, M. S., Mohd, N. F. R., & Yusarina, M. I. (2015). Fraud schemes in the banking institutions: Prevention measures to avoid severe financial loss. Procedia Economics and Finance, 28, 107-113.
Published
2021-02-02
Section
Articles