Business News
Risk Experts Adopt Measures Against Banks’ Failure In Nigeria
By Grace Alegba
The Association of Enterprise Risk Management Professionals (AERMP), on Monday said that it is adopting bold measures against banks’ failure in the nation through a new sensitisation initiative.
Mr Olayinka Odutola, Director General/Chief Executive Officer, AERMP said this in an interview with the News Agency of Nigeria (NAN) in Lagos.
Odutola said that the association was going to embark on sensitisation of bankers on the Basel Accord because adequate information about it would boost financial sector stability.
He said that understanding the accord would lead to better collaboration that would revolutionise the banking and financial services sectors to boost the nation’s economy.
He added that the knowledge of the accord would help banks meet up with the ongoing re-capitalisation benchmark with ease because it would boost internal collaboration.
Odutola said that several bankers were not aware of how their actions and inactions affected financial stability of their banks because of ignorance of the Basel Accord.
NAN reports that Basel Accords are series of banking supervision accords developed by the Basel Committee on Banking Supervision (BCBS) to regulate the banking sector and promote global financial stability.
The accords established minimum capital requirements and risk management standards for banks, aiming to improve their ability to withstand financial shocks and enhance transparency and risk management practices.
Odutola said that the association would set a day aside within its upcoming Financial Regulations Week to sensitise bankers on the basel accord.
He said, although the accord had been in existence, only risk management department of banks knew of it, hence the need to popularise it across all departments and the entire financial services sector.
“Banking capital regulation revolves around basel accord, it’s like the constitution for banking regulation.
“If you don’t understand the constitution, you will be breaching it without knowing.
“The basel accord stipulates the minimum capital a bank is required to have to do its business,” he said.
The risk expert said that the basel accord is the prescription the Central Bank of Nigeria uses to conduct stress tests for banks, to know whether they meet up with capital requirements.
According to him, basel accord must be a nomenclature that should be popular among bankers and financiers.
He said that the association would inaugurate the maiden basel accord day on July 1, in Abuja.
He said that the maiden event which is part of the Global Financial Regulation Week celebration is aimed at boosting financial literacy awareness among bankers and banks. (NAN)
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