A total of 741 cases of attempted fraud and forgery, involving N5.4 billion, $35, 406 and 150 Euros, were reported by banks to regulatory authorities during the first six months of 2007, Central Bank of Nigeria (CBN) has said.

The fraud and forgery incidents signify a 24.1 per cent increase over the 597 cases reported during the corresponding period for 2006.

CBN, which disclosed this in its "Half-year Report for 2007", said 438 fraud and forgery cases were successfully executed during the period resulting in the loss of N1.4 billion, $13,938 and 150 Euros.
Up to 295 cases of fraud and forgery involving N1.2 billion, $455,549 and 10,000 pound sterling were successfully executed in the corresponding period of 2006.

"The development was attributable to the weaknesses in the internal control systems of the banks and the delay to fully integrate their systems and processes," it stated.

CBN, in its assessment of the banking sector soundness using the Capital adequacy, Asset quality, Management, Earning, Liquidity (CAMEL) parameters, said no bank in the country was unsound as at June 2007.

"As the end-June 2007, six banks were rated sound, 16 satisfactory and three banks were rated marginal. No bank was rated unsound, reflecting the positive results of the consolidation exercise," it said.
The assessment contrasted the apex bank’s position in 2006 where 10 banks were rated sound, 12 satisfactory and three marginal.

CBN disclosed that the non-performing loans of banks rose from N209 billion as at end-June 2006 to N254 billion by June 2007, reflecting a deterioration in the quality of loan facilities.