Financial malpractices in the banking industry simply refer to all forms of ill practices perpetrated in the banking by the staff or outsiders. Such acts are fraudulent which erode the capital base of the affected banks and no bank for now is safe from it only that the magnitude in some cases is mi8nimal compared to others. Due to diverse effects of these fraudulent acts, various forms of checks are instituted and penalties noted out to offenders. The activities of the banks tribunals is a clear instance of such measures. In getting facts for this study, lots of works done on related topics are studied and various journals are used that have authoritative information on the subject . The journals consulted are mostly that of banks, supervisory authorities and in some cases view if bank staff are sought on issues that need clarification. Fraudulent practices are perpetrated in all sections of any economy, no government will be sitting idle watching its economy crumble via fraud. Measures are put in place to check this act but this could only minimize it if it is as well implemented. Government's contribution in checking the malpractices in banks is in the provision of laws and institutions with responsibility of monitoring this financial institution. The banking institution themselves are much in the war against these malpractices to save the institutions from collapse. In conclusion, large amounts of money are being lost by the banks through fraud. It is recommended that though there exist laws and checks against this malpractices, such laws should be enforced in its strict form and reviewed regularly to avoid certain loopholes that would be taken advantage of.