Nigerian Deposit Insurance Corporation has said that the rate of fraud in the banking sector rose by 182.77 per cent from 3,786 cases in 2013 to 10,612 cases in 2014.
The corporation in its 2014 annual report for the banking sector said “The Deposit Money Banks reported 10,612 fraud cases in 2014 compared with 3,786 cases reported in 2013, representing an increase of 182.77 per cent.
“In the same vein, the amount involved increased by 3.81bn or 17.5 per cent from 21.80bn in 2013 to 25.61bn in 2014.
“Also the expected/actual loss increased from 5.76bn in 2013 to 6.19bn in 2014. The increase of 7.57 per cent in expected/actual loss in fraud and forgeries was mainly due to the astronomical increase in the incidence of web-based (online banking), Automated Teller Machine and fraudulent transfer/withdrawal of deposit frauds.
“The banking industry non-performing loans to total loans ratio improved from 3.20 per cent in 2013 to 2.81 per cent in 2014 and was within the regulatory threshold of five per cent.
“The observed improved asset quality could be explained by the improved process of loan underwriting as well as the continued purchase of non-performing loans by Asset Management Corporation of Nigeria.
“The banking industry liquidity risk was moderate during the period under review. The industry average liquidity ratio rose from 50.63 per cent in 2013 to 53.65 per cent in 2014 showing an increase of 3.02 per cent over the 50.63 per cent in 2013.
“Individually, all the DMBs in the industry had liquidity ratios in excess of the minimum prudential requirement of 30 per cent as at December 31 2014, indicating that all DMBs were sufficiently liquid.
“The NDIC paid a total of 6.832bn to 529,046 insured depositors as at December 31, 2014 as against 6.824bn to 528,277 insured depositors as at December 31, 2013.
“The NDIC continued with the payment of insured deposits of closed MFBs in 2014 through the agent banks.
“A cumulative payment of N2.772bn had been made to 80,178 verified depositors of closed MFBs in 2014 as against N2.524bn paid to 75,571 verified depositors in 2013.
“The payment of liquidation dividends to the uninsured depositors of closed DMBs continued in 2014.
“The sum of N94.74bn was paid as liquidation dividend to 250,592 depositors in 2014 compared to N93.51bn paid to 250,497 depositors as at December 31, 2013.”
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