scholarly journals Fraud Detection in the Banking System in Nigeria: Challenges and Prospects

2018 ◽  
Vol 2 (3) ◽  
Author(s):  
B.A Badejo ◽  
B.A Okuneye ◽  
M.R Taiwo
Keyword(s):  
Internal Control ◽  
Banking Sector ◽  
Control Mechanism ◽  
Descriptive Analysis ◽  
Balance Sheet ◽  
Banking System ◽  
Fraud Detection ◽  
Financial Independence ◽  
Bank Staff ◽  
Bank Managers

Fraud is an epidemic dimension that has eaten deep into the banking sector as well as the entire economics in Nigeria. Its devastating effect manifests itself in the deteriorating balance sheet of banks as well as in economic backwardness. Apparently, measures to detect and eradicate fraud in banking sector have been quite ineffective as the fraudulent practices have been on the increase in recent times. Thus, this study evaluates the various challenges of detecting and combating fraud in the banking sector in Nigeria. The results from the descriptive analysis showed that lack of adequate motivation is not a major cause of fraud in banks, looting of fund by bank managers and directors constitutes the major form of fraud in Nigeria. Furthermore, it is recommended that government should strengthened existing anti-graft agencies and to enhance their financial independence. Those managers and director involved in looting of fund should be persecuted to serve as a deterrent to potential fraudsters. In addition, bank staff should be properly screened to test their morality and integrity before recruitment. Adequate internal control mechanism should be established to serve as check and balances among the bank staff. There is also the need for the anti-graft agencies to be strengthened in order to adequately complement the effort of the Central Bank of Nigeria (CBN) at nibbling the incidence of bank fraud in the bud.Keywords:  banking system, fraud, fraud detection, fraud prevention, Nigeria

Bank Capital Requirements after the Financial Crisis

2019 ◽  
pp. 706-735
Author(s):  
Mark E. Van Der Weide ◽  
Jeffrey Y. Zhang
Keyword(s):  
Financial Crisis ◽  
Structural Changes ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Capital Requirements ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Stress Tests ◽  
Global Banking

Regulators responded with an array of strategies to shore up weaknesses exposed by the 2008 financial crisis. This chapter focuses on reforms to bank capital regulation. We first discuss the ways in which the post-crisis Basel III reforms recalibrated the existing framework by improving the quality of capital, increasing the quantity of capital, and improving the calculation of risk weights. We then shift to the major structural changes in the regulatory capital framework—capital buffers on top of the minimum requirements; a leverage ratio that explicitly accounts for off-balance-sheet exposures; risk-based and leverage capital surcharges on the largest banks; bail-in debt to facilitate orderly resolution; and forward-looking stress tests. We conclude with a quantitative assessment of the evolution of capital in the global banking system and in the US banking sector.

scholarly journals Navigating the financial crisis in Helvetic Waters: An analysis of the banking sector (2007-09)

2011 ◽  
Vol 1 (2) ◽  
pp. 65-78
Author(s):  
Elisabeth Paulet ◽  
Francesc Relano
Keyword(s):  
Financial Crisis ◽  
Business Model ◽  
Financial Institutions ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Characteristic Structure ◽  
International Banks ◽  
Business Approach ◽  
Domestic Banks

As has been argued throughout this paper, the different way in which banks have been affected by the crisis is closely linked to their distinct business model. Consequently, the characteristic structure of the balance sheet in big banks and ethical banks is correlated with their divergent dynamic during the crisis. While the financial turmoil has left the business approach of ethical banks unchanged, as evidenced in the striking stability of their balance sheet from 2007 to 2009, the pattern shown by big banks has substantially changed over this same period. These developments would tend to suggest the need to reform the business model of big banks. There is no clear empirical evidence that a banking system with a large number of small institutions would be any more stable than the system as it currently stands. Besides, financing certain big projects would always require the existence of large international banks. Both types of financial institutions are in fact complementary. How to regulate the banking and financial sector is thus a complex and multifaceted issue. One cannot impose the same requirements on big international-oriented banks and small domestic banks. As this paper has tried to demonstrate, both have a distinct business model.

scholarly journals BANKS OF THE CASPIAN REGION COUNTRIES IN THE BANKING SYSTEM OF RUSSIA: CURRENT TRENDS AND DEVELOPMENT PROBLEMS

2019 ◽  
Vol 8 (3) ◽  
pp. 7-28
Author(s):  
Olga Viktorovna Bogacheva ◽  
Oleg Alekseevich Lepekhin
Keyword(s):  
Global Economy ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Operating Efficiency ◽  
Caspian Region ◽  
Banking Systems ◽  
Internalization Process ◽  
Business Entities ◽  
Credit Institutions

The mutual penetration of capital from one country into another has become a characteristic feature of the world financial system. This is largely due to the current globalization processes in the global economy, the continuous development of banking technologies, the need to maintain foreign economic activity of business entities and the rationale for expanding the scales of business activity as a tool to increase operating efficiency. The purpose of the article is to study the current internalization process in the banking systems of the Caspian region countries in terms of the penetration of the banks from the Caspian region countries into the Russian banking sector. Methodology. We have identified the sample of the Russian credit institutions fully controlled by the shareholders from the Caspian region states. Using the data, presented in turnover balance reports (Form 101), we have calculated key performance indicators in 2015–2018. We used the Bank of Russia’s practice to estimate the aggregate balance sheet of the 30 largest credit institutions as the basis for our algorithm. We have analyzed tendencies in funding base, structure of assets and operating efficiency. Results. The analysis of the financial statements shows that within the chosen business model, the banks of the sample are more likely to focus on international financial settlements, servicing foreign trade transactions, than on traditional types of banking business such as lending to non-financial enterprises and individuals. Their performance is significantly lower than the industry benchmarks, which so far does not allow us to expect an increase in their scale of presence in the Russian market in the near future. Practical implications. The analysis of current processes in the field of internationalization of banking systems can be used to assess the financial and economic integration of the countries of the Caspian countries and to develop corrective measures aimed at its further development and deepening.

Legal and Regulatory Strategies of Islamic Banking System in Malaysia: A Reflection for Nigeria

2020 ◽  
Vol 7 (1) ◽  
pp. 40-55
Author(s):  
Akilu Aliyu Shinkafi ◽  
Sani Yahaya ◽  
Ahmad Muhammad Gusau
Keyword(s):  
Banking Sector ◽  
Descriptive Analysis ◽  
Banking System ◽  
Islamic Banking ◽  
Regulatory Structure ◽  
Financial Industry ◽  
Legal Reforms ◽  
Regulatory Strategies ◽  
Regulatory Standards ◽  
Legal Strategies

Effective strategies on the legal and regulative framework of Islamic banks are very critical to the endurance of the Islamic banking sector. In fact, legal place and regulatory structure of every industry determine the healthy standing of its stability, sustainability, and success. The major objective of this study is to explore the legal and regulatory strategies of the Islamic banking system in Malaysia and proffer it as a reflection for Nigeria. The study is qualitative in nature, it employed two instruments (document technique and interview instrument) for the data collection. Thematic and descriptive analysis were used where themes and sub-themes were depicted as they emerged from the data. The outcome of the study reveals that Malaysia has strengthened its legal strategies by promulgating several acts, legal reforms, provisions, and promulgation of certain acts of law, amendments of laws, passing bills, and enactment of new laws such as IBA, IFSA, ICMA, CBMA, GIA, GFA, Mu’amalat bench, and etcetra with the view to ensure the free hit of the legal hiccups, best practices, effective corporate governance, and proper risk management in the financial industry. The outcome of the study further show that BNM has significant influence in the regulations, supervision, and control of IBs. These roles include the formation of SAC and Shari’ah committees for IBs; establishment of Islamic financial service board IFSB, spelling effective Shari’ah governance framework SGF; services, and compliance to Shari’ah regulatory standards, and creating talents such as ISRA, INCEIF, and several others.

scholarly journals A Comprehensive Approach for Calculating Banking Sector Risks

2020 ◽  
Vol 8 (4) ◽  
pp. 69
Author(s):  
Carmelo Salleo ◽  
Alberto Grassi ◽  
Constantinos Kyriakopoulos
Keyword(s):  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Contingent Claims ◽  
Comprehensive Approach ◽  
Real Economy ◽  
Claims Analysis ◽  
Contingent Claims Analysis ◽  
Government Sector ◽  
Risk Metric

We propose a comprehensive approach for the analysis of real economy and government sector risk transmission to the banking system and apply it in ten Euro-Area countries from 2005 to 2017. A flexible methodology is developed to model banks’ assets according to the risk-adjusted balance sheet of the counterparts. The use of distance to distress as a popular risk metric shows that Contingent Claims Analysis underestimates banks risk in stable periods and overstates it during crisis. Furthermore, the approach succeeds in detecting spillovers from households, non-financial corporations and sovereign sectors: for the countries examined the main source of instability comes from the Non-Financial Corporation sector and its increased assets volatility.

scholarly journals Adjustment of prudential norms, determining vector of the banking sector development

Upravlenie ◽  
2020 ◽  
Vol 7 (4) ◽  
pp. 32-43
Author(s):  
N. V. Gryzunova
Keyword(s):  
Internal Control ◽  
Business Models ◽  
Banking Sector ◽  
Banking System ◽  
System Reform ◽  
Banking Supervision ◽  
Interest Rate Policy ◽  
Credit Line ◽  
Russian Economy ◽  
Credit Institutions

Currently, the Bank of Russia carries out radical reforms in the administration system of banking supervision and regulation. You can observe the interaction between monetary policy and macro prudential policy. The purpose of the traditional regulator is protection of investors', shareholders', customers' capital. The main problem of the Russian economy is the shortage of investment and working capital from non-credit institutions and the difficulty to get a foothold lending. The main objective of the banking system reform is to create additional sources of investment for non-credit institutions. The tightening Supervisory requirements although eliminate the total bank risks, but reduce business activity and agility of the banking system. The curve of investment demand in the Russian economy is flat, that characterizes the low profitability of investments and the weak dependence on interest-rate policy. In this connection, it has been suggested to consider investment companies as the main criterion of competitiveness and the main argument in decision-making about granting a credit line.The feasibility of the allocation of investment criteria in the monetary rule has been shown in the article. The urgency proportional distribution of regulatory indicators of banking supervision by tier banking system, which are formed from the pacing of functional and regional specificity, – has been substantiated. The mechanism of price stability based on the clustering of financial institutions has been offered. It has been suggested to use the investment criteria as justification for a transfer service of non-bank organization to another bank cluster. Possible trends and implications of key planned reforms of the banking system including the bank's tier and the distribution tier of powers and functions have been analysed.Due to measures of preventive supervision and bank clustering, it is possible to expect regional market segmentation, improving the effectiveness of internal control systems, based on the distribution of the control functions in bank tiers, simplify management and risk reduction in accordance with the profile of the company and the level of the bank's operations. It has been proved in the paper that a focused segmentation of the credit market allows us to reduce the credit risks for banks, as well as to link market characteristics with the business models of each cluster.

scholarly journals Tindak Pidana Pembobolan Dana Nasabah dapat Mengurangi Kepercayaan Masyarakat terhadap Industri Perbankan

2020 ◽  
Vol 12 (2) ◽  
pp. 282
Author(s):  
Muhammad Zen Abdullah
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Balance Sheet ◽  
Fund Raising ◽  
Food Storage ◽  
Legal Research ◽  
Bank Management ◽  
Bank Managers ◽  
Banking Ethics ◽  
Relevant Rule

The development of the banking industry by entering the current era of globalization and liberalization of financial markets, has resulted in increased competition among banks, especially in fund raising. Therefore, bank management is required to have the skills to manage the bank's wealth, debt and capital reflected in the bank's balance sheet well. A more fundamental of the expertise and skills in managing the bank, it is necessary to be careful and followed by the good faith of the bank management, ranging from the board of commissioners, directors and employees of the bank. This means that bank managers should be the party that always adheres to the high code of banking ethics and complies with all applicable laws and regulations in the banking sector. But in practice, it is not always possible to run well if it is not covered by the possibility of food-storage that leads to fraud by breaking customer funds conducted internally by the bank itself. Of these problems raises fundamental questions, namely (1) What causes the criminal breach of customer funds in the banking industry, and (2) How to resolve the criminal breach of customer funds in the banking industry. To answer both questions, legal research methods are used. Normative juridical approach (legal research), namely research on positive laws by evaluating the relevant rule of law. This approach identifies and codified the law as the norm, rules, regulations related to the criminal breach of customer funds in the banking industry.

scholarly journals Bank Competition in India: Some New Evidence Using Risk-Adjusted Lerner Index Approach

Risks ◽  
2019 ◽  
Vol 7 (2) ◽  
pp. 44 ◽  
Author(s):  
Arrawatia ◽  
Misra ◽  
Dawar ◽  
Maitra
Keyword(s):  
Market Power ◽  
Structural Changes ◽  
Banking Sector ◽  
Balance Sheet ◽  
Banking System ◽  
Bank Competition ◽  
Competitive Condition ◽  
Lerner Index ◽  
Index Approach ◽  
New Evidence

Banks in India have been gone through structural changes in the last three decades. The prices that bank charge depend on the competitive levels in the banking sector and the risk the assets and liabilities carry in banks’ balance sheet. The traditional Lerner Index indicates competitive levels. However, this measure does not account for the risk, and this study introduces a risk-adjusted Lerner Index for evaluating competition in Indian banking for the period 1996 to 2016. The market power estimated through the adjusted Lerner Index has been declining since 1996, which indicates an improvement in competitive condition for the overall period. Further, as indicated by risk-adjusted Lerner Index, the Indian banking system exerts much less market power and hence are more competitive contrary to what is suggested by traditional Lerner index.

scholarly journals The impact of financial cybercrimes on total quality standards according to Jordanian Islamic banks workers: أثر الجرائم المالية الإلكترونية على معايير الجودة الشاملة من وجهة نظر العاملين في البنوك الإسلامية الأردنية

2021 ◽  
Vol 5 (14) ◽  
pp. 24-1
Author(s):  
Ala’a Hashem Tarbeh Ala’a Hashem Tarbeh
Keyword(s):  
Banking Sector ◽  
Negative Impact ◽  
Descriptive Analysis ◽  
Banking System ◽  
Quality Standards ◽  
Islamic Banks ◽  
Analysis Method ◽  
Total Quality ◽  
Set Up ◽  
The Impact

  The study aimed to identify the impact of financial cybercrimes on total quality standards according to employees of Islamic banks in Jordan. Adopting the descriptive analysis method, and design a questionnaire was applied to a random sample of (293) employee, and the following results were reached: 1- According to Islamic banks employees, there is a negative impact of financial cybercrimes above mentioned. 2- There is a negative impact of infrastructure's targeting crime with software on the total quality standards. 3- There is a negative impact of the of payment's fraud crime represented by source misuse, and others misuse. 4- The Percentage of the impact of all cybercrime on the total quality standards in the banking sector to those working in Islamic banks in Jordan is medium. And the study also concluded with several recommendations including work in to set up a banking system aimed at achieving information security in the banking sector to protect it from the risks of these crimes.

scholarly journals Banking sector lack detection: Expectation gap between auditors and bankers

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1353-1362 ◽  
Author(s):  
Nurul Hasanah Uswati Dewi ◽  
Putri Wulanditya ◽  
Dian Oktarina ◽  
Herwin Ardianto
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Fraud Detection ◽  
Internal Audit ◽  
Internal Auditors ◽  
Interpretive Paradigm ◽  
Expectation Gap ◽  
Private Banks ◽  
Bank Managers ◽  
Work Units

This study aims to identify the determinants of the expectation gap in fraud detection between internal auditors and bankers in Indonesia. The shift in the internal audit task in the banking sector can cause the hole in audit expectations to widen. This research uses qualitative methods with an interpretive paradigm which is rarely done by previous research. The results of interviews with internal audit work units and bank managers from 4 state-owned and private banks indicate a gap in audit expectations regarding the responsibilities between internal auditors and bankers, especially in carrying out the function of examining and detecting fraud. This study recommends the financial services authorities and bank leaders be able to improve education regarding anti-fraud policies to stakeholders, especially in terms of a clear division of tasks in fraud detection in the banking sector.

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