Fraud: A Negative Catalyst to Bank Growth

Abstract: This study investigates the impact of fraud on the growth of Nigerian banks, highlighting how fraudulent practices hinder sustainable development in the financial sector. Using secondary data from published financial reports between 2013 and 2023, the study employs regression analysis to assess the correlation between the prevalence of fraud and indicators of bank growth. This study has empirically examined the impact of various types of fraud on the growth of Nigerian banks, measured by total bank assets. The findings reveal that certain fraud types—specifically online/web fraud and cheque fraud—have a significant negative effect on bank growth, confirming their role as detrimental factors in the banking sector. Conversely, some forms of fraud, such as automated teller machine fraud and total amount lost, surprisingly show a positive association with bank growth, which may indicate underlying complexities or anomalies that warrant further investigation. The study recommends stronger internal control systems, and enhanced regulatory oversight to mitigate the rising incidence of fraud. This research provides policy-relevant insights into curbing fraud as a means to promote financial sector growth in Nigeria.

Keywords: bank growth, fraud, financial crime, Nigeria, internal control, financial sector, regulatory oversight.

Title: Fraud: A Negative Catalyst to Bank Growth

Author: Erhabor, Osaruyi Jeffrey, ISEDU, Mustafa

International Journal of Management and Commerce Innovations 

ISSN 2348-7585 (Online)

Vol. 13, Issue 1, April 2025 - September 2025

Page No: 466-475

Research Publish Journals

Website: www.researchpublish.com

Published Date: 26-August-2025

DOI: https://doi.org/10.5281/zenodo.16947859

Paper Download Link (Source)

https://www.researchpublish.com/papers/fraud-a-negative-catalyst-to-bank-growth