INTERNAL CONTROL SYSTEM AS A MEANS OF PREVENTING FRAUD IN FINANCIAL INSTITUTION A Case Study of First Bank of Nigeria Plc. A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
The focus of this work is to examine the importance of controlling fraud internally in financial institution through some tactic measures, a case study of First Bank of Nigeria Plc, Benin. Fraud in financial institutions in particular and in organizations in general has been a major challenges and threat to the growth and development of organization/ institutions and the country in general.
It is an undisputable fact that many financial institutions has failed in the past and some are staggering today because of their inability to manage and control fraud internally in their institutions.
Therefore this very work aimed at providing necessary hints for financial institution on how to carry out effective measures in curbing internal fraud in order to achieve organizational objectives among other things. Also, the study provide data (secondary data) for further studies in the related course of study.
Necessary literatures were deliberately received in which relevant existing studies were critically examined for appreciations and criticism and of course the theoretical framework of the subject matter was received, in which various aspect of curbing fraud internally were extensively and intensively looked at.
Subsequently the data gathered through the questionnaire administered were presented, analyzed and duly interpreted.
CHAPTER ONE
1.1 BACKGROUND/HISTORY OF THE STUDY
Financial institutions are organizations which deals primarily in money, they constitute the financial framework of an economy, they also help to pool savings and excess liquidity.
The origin of First Bank in Nigeria as commercial bank in 1892 a company known as Elder Dempster was registered in London and was given the sole authority to distribute coins in Nigeria later in that same year, the bank had its headquarters office in South Africa known as Africa Banking Corporation (ABC). This became the first British bank oversea and indeed in the whole West Africa, ten (10) months later of it’s operations, the Lagos branch was faced with both internal and external operations constrains.
In 1894, Elder Dempster and Company bought over the Africa Banking Corporation to form a new bank in London known as Bank of British West Africa (B.B.W.A) with authorized share capital £100.00. It opened a branch office in Lagos, the bank’s name was changed to Bank of West African Limited (BWA) in 1959.
In 1966 Bank of West African Limited (BWA) merged with Standard Bank Limited (SBL) London to form a single bank known as Standard Bank West Africa Limited (SEWA). In 1969 Standard Bank West Africa Limited was incorporated with Nigerian Standard Bank Limited, which gave raise to the present name bank as First Bank of Nigeria Plc in 1979 (Dr. Unugbro 2007, p. 85, Money and Banking).