Table of Contents
Abstract. 2
CHAPTER ONE.. 5
INTRODUCTION.. 5
1.1 Background to the Study.. 5
1.2 Statement of the Problem... 6
1.3 Objectives of the Study.. 7
1.4 Research Questions. 7
1.5 Research Hypothesis. 8
1.6 Significance of the Study.. 8
1.7 Scope of the Study.. 9
1.8 Limitations of the Study.. 9
1.9 Organization of the Study.. 9
CHAPTER TWO.. 11
REVIEW OF RELATED LITERATURE.. 11
2.1 Introduction.. 11
2.2 Theoretical Review.. 11
2.2.1 Stakeholder Theory.. 11
2.2.2 Agency Theory.. 12
2.2.3 Institutional Theory.. 12
2.2.4 Social Contract Theory.. 13
2.3 Conceptual Review.. 13
2.3.1 Overview.. 13
2.3.2 Ethical Frameworks in Nigerian Banks. 14
2.3.3 Financial Practices and Ethical Dilemmas. 14
2.3.4 Impact on Stakeholders. 15
2.3.5 Regulatory Responses. 15
2.3.6 Corporate Governance and Ethical Leadership.. 15
2.3.7 Socio-Economic Implications. 16
2.3.8 The Role of Technology.. 16
2.4 Empirical Review.. 16
2.5 Summary of Literature Review.. 19
Chapter Three. 20
Research Methodology.. 20
Introduction.. 20
Research Design.. 20
Population of the Study.. 21
Sampling Technique. 21
Sample Size. 21
Data Collection Methods. 22
Data Analysis Procedures. 22
Ethical Considerations. 22
Conclusion.. 23
CHAPTER FOUR.. 24
DATA ANALYSIS AND INTERPRETATION.. 24
4.1 Preamble. 24
4.2 Socio-Demographic Characteristics of Respondents. 24
4.3 Analysis of the Respondents’ Views on Research Question one: 28
4.4 Testing Hypothesis. 42
Discussion of Findings. 43
CHAPTER FIVE.. 46
SUMMARY CONCLUSION AND RECOMMENDATIONS.. 46
5.1 Summary.. 46
5.2 Conclusion.. 47
5.3 Recommendations. 47
REFERENCES.. 49
Research Questionnaire. 52
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Ethical considerations and financial practices in Nigerian banks play a pivotal role in shaping the country's financial landscape. Nigeria, as one of the largest economies in Africa, relies heavily on its banking sector for economic growth and stability. However, maintaining ethical standards and implementing sound financial practices are critical for fostering trust among stakeholders and ensuring sustainable development. This introduction aims to delve into the intricate relationship between ethics and financial practices within Nigerian banks, shedding light on the challenges, strategies, and implications involved.
Ethical considerations in Nigerian banks encompass a broad spectrum of principles and values that guide their operations and interactions with customers, shareholders, and the wider society. Issues such as transparency, accountability, fairness, and integrity are paramount in maintaining public trust and confidence in the banking system. Moreover, adherence to ethical standards not only enhances the reputation of banks but also contributes to the overall stability of the financial sector. However, navigating ethical dilemmas amidst competitive pressures and regulatory requirements poses significant challenges for Nigerian banks (Adesanya & Oshode, 2021).
Financial practices in Nigerian banks are influenced by various factors, including regulatory frameworks, market dynamics, technological advancements, and global economic trends. Effective risk management, prudent lending practices, and capital adequacy are central to maintaining financial stability and mitigating systemic risks. Moreover, the adoption of innovative financial technologies (FinTech) has revolutionized banking operations, offering opportunities for efficiency gains and improved customer experience. However, the rapid pace of technological change also presents new ethical considerations, such as data privacy, cybersecurity, and financial inclusion (Abdulsalam et al., 2020).Top of FormBottom of Form
1.2 Statement of the Problem
Ethical considerations and financial practices in Nigerian banks have been subject to scrutiny and debate due to various challenges and complexities inherent in the banking sector. One of the primary issues pertains to the prevalence of unethical behavior, including fraud, corruption, and insider dealings, which undermine the integrity and stability of the financial system. Despite regulatory efforts and industry guidelines, instances of unethical conduct continue to tarnish the reputation of Nigerian banks, eroding public trust and investor confidence (Adeleye & Oladeji, 2023).
Another significant problem revolves around the adequacy and effectiveness of financial practices in Nigerian banks, particularly in terms of risk management, corporate governance, and compliance with regulatory standards. Weaknesses in risk assessment and control mechanisms have exposed banks to various financial risks, such as credit, liquidity, and operational risks, leading to financial losses and systemic vulnerabilities. Moreover, the complexity of financial instruments and the rapid evolution of banking technologies pose challenges in ensuring the resilience and sustainability of banking operations in Nigeria (Bello & Anjorin, 2022).Top of Form
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1.3 Objectives of the Study
The main objective of the study is to examine Ethical considerations and financial practices in Nigerian Banks. Specific objectives of the study are:
- To analyze the prevalence of unethical financial practices in Nigerian banks.
- To evaluate the effectiveness of current regulations and enforcement mechanisms in promoting ethical banking practices.
- To explore the relationship between ethical practices and financial performance in Nigerian banks.
1.4 Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- What are the most common types of unethical financial practices reported in Nigerian banks?
- To what extent do existing regulations from the Central Bank of Nigeria CBN address the identified unethical practices?
- Do banks that prioritize ethical practices experience different financial outcomes compared to those that don't?
1.5 Research Hypothesis
The following research hypothesis was developed and tested for the study:
Ho: There is no significant relationship between ethical considerations and financial practices in Nigerian banks.
1.6 Significance of the Study
The study is important for many reasons. The following are the major stakeholders this paper through its practical and theoretical implications and findings will be of great significance:
Firstly, the paper will benefit major stakeholders and policy makers in the Banking sector. The various analysis, findings and discussions outlined in this paper will serve as a guide in enabling major positive changes in the industry and sub-sectors.
Secondly, the paper is also beneficial to the organizations used for the research. Since first hand data was gotten and analysed from the organization, they stand a chance to benefit directly from the findings of the study in respect to their various organizations. These findings will fast track growth and enable productivity in the organisations used as a case study.
Finally, the paper will serve as a guide to other researchers willing to research further into the subject matter. Through the conclusions, limitations and gaps identified in the subject matter, other student and independent researchers can have a well laid foundation to conduct further studies.
1.7 Scope of the Study
The study is delimited to Unity Bank, Port Harcourt. Findings and recommendations from the study reflects the views and opinions of respondents sampled in the area. It may not reflect the entire picture in the population.
1.8 Limitations of the Study
The major limitations of the research study are time, financial constraints and delays from respondents. The researcher had difficulties combining lectures with field work. Financial constraints in form of getting adequate funds and sponsors to print questionnaires, hold Focus group discussions and logistics was recorded. Finally, respondents were a bit reluctant in filling questionnaires and submitting them on time. This delayed the project work a bit.
1.9 Organization of the Study
The study is made up of five (5) Chapters. Chapter one of the study gives a general introduction to the subject matter, background to the problem as well as a detailed problem statement of the research. This chapter also sets the objectives of the paper in motion detailing out the significance and scope of the paper.
Chapter Two of the paper entails the review of related literature with regards to corporate governance and integrated reporting. This chapter outlines the conceptual reviews, theoretical reviews and empirical reviews of the study.
Chapter Three centers on the methodologies applied in the study. A more detailed explanation of the research design, population of the study, sample size and technique, data collection method and analysis is discussed in this chapter.
Chapter Four highlights data analysis and interpretation giving the readers a thorough room for the discussion of the practical and theoretical implications of data analyzed in the study.
Chapter Five outlines the findings, conclusions and recommendations of the study. Based on objectives set out, the researcher concludes the paper by answering all research questions set out in the study.
