An Evaluation of Fraud and Deposit Money Banks’ Profitability in Nigeria: (2009-2018)

James S.O., Ajayi S.O. and Okoh M.O.
Additional contact information
James S.O.: Department of Banking and Finance, Kogi State University, Anyigba, Nigeria.
Ajayi S.O.: Department of Banking and Finance, Kogi State University, Anyigba, Nigeria.
Okoh M.O.: Department of Banking and Finance, Kogi State University, Anyigba, Nigeria.

Indian Journal of Commerce and Management Studies, 2019, vol. 10, issue 3, 24-36

Abstract: This work evaluates Fraud and Profitability of Deposit Money Banks (DMB’s) in Nigeria for ten years (2009-2018); with the specific objective of assessing whether the rate at which fraud occurs, the number of persons involved in fraud, the amount targeted infraud and the loss that the banks incurred to fraud has significant impact on Profitability for the period. Using Regression Analysis on historical data from Nigeria Deposit Insurance Corporation (NDIC) Reports, we found out that there exists a strong positive correlation between DMB’s Fraud and Profitability at more than 90%; and judging by our data analytics at 5% level of significance, the frequency of fraud, fraud amount and monies that could not be recovered from fraud proved to assert strong influence on the profitability of DMB’s in Nigeria with only Fraud Involvement proving insignificant.To mitigate fraud, we recommend that banks create fraud policies that are robust enough to prevent fraud perpetrators from committing fraud and a Whistleblowing System (WBS) that guarantees protection for a Whistle Blower.

Keywords: Fraud; Profit; Profitability; Deposit Money Banks; Performance. (search for similar items in EconPapers)
Date: 2019
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://scholarshub.net/index.php/ijcms/article/view/8/7 (application/pdf)
http://scholarshub.net/index.php/ijcms/article/view/8 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aii:ijcmss:v:10:y:2019:i:3:p:24-36

DOI: 10.18843/ijcms/v10i3/03

Access Statistics for this article

Indian Journal of Commerce and Management Studies is currently edited by Dr. Arif Anjum

More articles in Indian Journal of Commerce and Management Studies from Educational Research Multimedia & Publications,India
Bibliographic data for series maintained by Mr. Asif Anjum ().