CORPORATE FRAUD RISK: AN INSIGHT FROM THE NIGERIAN FINANCIAL INSTITUTION (A STUDY OF SOME SELECTED MICRO-FINANCE BANKS IN NIGERIA)

CORPORATE FRAUD RISK: AN INSIGHT FROM THE NIGERIAN FINANCIAL INSTITUTION (A STUDY OF SOME SELECTED MICRO-FINANCE BANKS IN NIGERIA)


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CORPORATE FRAUD RISK: AN INSIGHT FROM THE NIGERIAN FINANCIAL INSTITUTION (A STUDY OF SOME SELECTED MICRO-FINANCE BANKS IN NIGERIA)

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ABSTRACT

Microfinance Banks in Nigeria are subject to fraud risks. Corprate fraud and miscounduct remain a constant threat to the public trust and confidence in microfinance banks. Inability of the microfinance banks to strive to achive compliance with an array of antifraud laws and regulations has resulted to lack of willingness to pay loans coupled with diversion of funds by borrowers, wilful negligence and improper appraisal by credit officers. Poor supervision and undue government intervention with the operations of government sponsored credit programmes due to the management failure. The weak internal control which have relatively affected the strong management and staff, and adequate systems to control the microfinance bank. The aimed investigating the corporate fraud risk as an insight from the Nigerian financial institution. The study adopted descriptive research design. Simple Random sampling and purposive sampling were used. The sample size for the was 262. The statistical tool used were Correlation and Regression. The findings revealed that improper supervisory and regulatory systems could lead staff and clients to commit fraudulent act in the microfinance institutions.  The results also show that poor supervision and undue government intervention in microfinance bank has contributed to the incidence of fraud in the microfinance institutions.The study recommended that lack of knowledge of the forms and ways of dealing with fraudulent practices in microfinance banks should be given to the staff to reduce the risk of fraud.

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Microfinance Banks in Nigeria are subject to fraud risks. Corprate fraud and miscounduct remain a constant threat to the public trust and confidence in microfinance banks. Inability of the microfinance banks to strive to achive compliance with an array of antifraud laws and regulations has resulted to lack of willingness to pay loans coupled with diversion of funds by borrowers, wilful negligence and improper appraisal by credit officers. Poor supervision and undue government intervention with the operations of government sponsored credit programmes due to the management failure... business administration project topics

CORPORATE FRAUD RISK: AN INSIGHT FROM THE NIGERIAN FINANCIAL INSTITUTION (A STUDY OF SOME SELECTED MICRO-FINANCE BANKS IN NIGERIA)

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