Challenges of Internal Bank Fraud Policy. A Case Study of Commercial Banks In Harare Central Business District

Gombarume Fungai Brian
2014 Zenodo  
In the intermediation, banks mobilize savings from the surplus units of the economy and channel these to the deficit units, particularly private business enterprises for the purpose of expanding their productive capacity (Adeyemo 2012). Levi (2001), asserts that corporate financial scandals in the USA such as Enron and Tyco debacles send shockwaves in the corporate world, regulatory authorities, audit fraternity and the economic world society at large. These have led to the erosion of investor
more » ... onfidence in the financial markets. The Zimbabwe banking sector has had its fair share of financial scandals. The Reserve Bank of Zimbabwe Report (RBZ, 2006) examines the 2003-2004 financial turmoil that was caused by many fraud related factors such as the shocking inadequacy of the risk management system, diversion from the core business of the banks to speculative activities contrary to the dictates of the Banking Act Chapter 24:20 and its regulations, creative accounting which increased the audit risk and overstatement of the banks" financial statement (window dressing), high level of non performing insider loans and rapid expansion and chronic liquidity challenges.
doi:10.5281/zenodo.3457654 fatcat:ohw2rmnq55hu5buws6x5mnmk6y