Mrs Hamda Ambah
The Chief Executive Officer of FSDH Merchant Bank, Hamda Ambah, have stated that conflicting laws have been main frustrations in the regulating the monetary sub-sector over time.
She stated the issue has triggered instability and related collapse of banks, noting that legal guidelines and laws must be utilized to all establishments with out exemption and devoid of gaps.
Speaking on the FITC Thought Leadership Discussion Series in Lagos final weekend, Ambah affirmed that point has come for banking regulators to come back collectively and agree on comparable insurance policies to keep away from conflicting laws.
She maintained that the fears of possible bank failure could possibly be averted if all stakeholders in the business may play their roles successfully in synergy.
“The biggest downside banks and banking establishments have is corporate governance, and lack of excellent corporate governance at all times results in bank failure.
“The issues associated with corporate governance were issuing credit without following appropriate process and the upturning of entrenched processes by managing directors, among others,” she stated.
Earlier the Managing Director, Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim, careworn the potential of one other bank failure in the nation if the prevailing weak corporate governance tradition and weak inside management are allowed to proceed.
Represented by the Executive Director, Operations, NDIC, Aghatise Erediauwa, he stated: “Banks normally have a cycle of between seven to 10 years. If we've got not had bank failure in 15 years, then they're certain to occur quickly. Presently, we're frightened that the cycle is nearly full.
“This is all due to the issue of weak corporate governance culture in the banking system and weak internal control. If this is the situation, how would this drive financial system to achieve economic growth? This is our fear as regulators and there is a lot to be done to avoid future occurrences.”
To the Chief Executive Officer, Sterling Bank Plc, Abubakar Suleiman, apart from corporate governance, points regarding lack of sovereign governance and transparency in laws have to be taken significantly by related regulatory businesses.
This, he stated, has develop into difficult to the banking business, though corporate governance in banks had develop into higher now.