Doggedness in protecting the nation’s seaport : Apapa Customs Command seizes N1.1bn worth of illicit drugs 
Intra-African trade : CGC Adeniyi meets AfCFTA Secretary General at Biashara Afrika 2024 
Climate Change Mitigation : Customs proficiency on the line of duty 
Post Clearance Audit : WCO, World Bank, IMF collaborate with Nigeria Customs to Boost Trade Facilitation 
High expectations as Ikechukwu Onyemekara emerges General Manager, Corporate and Strategic Communications department of NPA Toxic loans: AMCON Seeks Re-introduction of Failed Bank Act ..Says the Act will check financial rascality
Toxic loans: AMCON Seeks Re-introduction of Failed Bank Act
.Says the Act will check financial rascality
By Udeme Clement & Faith Idem
The Asset Management Corporation of Nigeria, AMCON, is seeking re-introduction of ‘Failed Bank Act’ by the Federal Government to check Non-Performing Loans in the banking industry.
The Managing Director and Chief Executive Officer, CEO, of AMCON, Mr. Ahmed Kuru, said this in Lagos, when addressing officials of Risk Management Association of Nigeria, RIMAN, led by the President, Magnus Nnoka.
The AMCON boss explained, “Re-introduction of Failed Bank Act into our country’s financial system will not only address the current trend of financial rascality on the part of some bankers, but will ensure discipline in the banking industry as a whole”.
He emphasized, “The Act will compel operatives in the banking system to account for their actions at all times. It will also check financial rascality, to tackle resurgent of huge Non-Performing Loans in the system”.
He pointed out, “I have been on both sides, first, as a banker and currently, as a regulator. I can authoritatively talk on issues relating to risk management in the financial sector. What we have noticed at present is lack of appropriate framework to effectively manage the risk structure”.
Kuru went on, “Credits are booked with impunity without any intention of paying back and the grievous impunity is taking place within the credit process.
“As such, there is urgent need to revisit the Failed Bank Act, to make operatives become responsible for their actions”.
He recalled, “After intervention of the Central Bank of Nigeria, CBN, in 2009, they insisted that risk management must be given prominence right from the Board level to the account office.
“One of the reasons given for failure of the banking system during the global financial crisis of 2008/2009, which led to creation of AMCON was prevalence of weak risk management framework by the financial institutions”.
The AMCON MD also mentioned lack of robust risk management strategy and non adherence to laid down principles governing credit approvals by financial institutions as some of the problems”.
