This research work focused on the effects of fraud and bad debt on bank performance. By this it is means how fraud and bad debt have effect in daily transaction in the banking system. This project work has been properly designed within the scope of five chapters. The first chapter covered the introduction, statement of the problem and objective which also base on the causes effort and solution of fraud and bad debt.

Further an extensive reviews of related literature was undertaken while various method of collection were used to obtained the relevant informations about the research work. However, the presentation and analysis of data were done through the statistical analysis of data gathered in the course of study.

Finally recommendations are forwarded which the research feels will help banking system and other financial institution in general to improve their internal control system.