Fraudulent Transactions In Banks Rise To 43.7% — NDIC -

Despite measures  put in place by banks, regulators of  the finance sector as well security operatives, the volume and value of fraud in the banking industry are on the increase.

According to the Nigeria Deposit Insurance Corporation 2012 annual report, the volume and value of fraud in the banking industry have risen by 43.7 and 10.9 per cent respectively. A total of 3,380 fraud cases involving the sum of N17.97 billion with expected/contingent loss of about N4.52 billion was reported by Deposit Money Banks (DMBs)  in 2012.

Expected/contingent loss  increased by N455 million as against N4.072 billion which was reported in 2011. Although there was a 43.7 per cent increase in the number of reported fraud cases from 2,352 in 2011 to 3,380 in 2012, the amount involved decreased by 36.4 per cent from N28.40 billion in 2011 to N18.04 billion in 2012.

However, the industry  recorded significant improvement in its financial condition and performance in 2012 with the banking industry’s total assets growing by 10.9 per cent from N21.89 trillion in 2011 to N24.58 trillion in 2012.

Out of the total industry’s assets of N24.58 trillion, total loans and advances stood at N8.15 trillion, representing over 33 per cent  or one-third  of total assets.

Also, 54.97 per cent of  the banking industry total loans or N4.48 trillion was extended to the real sector of the economy in 2012 as against N3.88 trillion and N3.51 trillion  or 53.37 per cent and 48.95 per cent of total loans in 2011 and 2010, respectively.

Lending to the Agriculture sector increased with 3.60 per cent of total loans and advances going out to the sector in 2012 compared to 2.15 per cent and 3.11 per cent recorded in 2010 and 2011, respectively.

In terms of soundness, the NDIC said there was no bank that was unsound as 10 banks were rated sound, nine satisfactory and only one bank was rated marginal.

 “Thus, the industry could be considered to be relatively stable in 2012. There was no unsound bank in the banking industry as at 31st December, 2012”, the corporation said.


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