Nigerian banks not affected by financial crisis
The local banks in Nigeria are presently unaffected by the negative developments in the financial markets of the United States and Europe. The reason is that the crisis is driven by failed financial products that led to the systemic distress.The President of Chartered Institute of Bankers of Nigeria and Group Chief Executive Officer, Intercontinental Bank Plc, Dr. Erastus Akingbola, said that: “As the crisis appears escalating in the world’s leading financial markets, it is natural for financial services consumers and the general public in other parts of the world to be concerned about the possible spill-over effect or impact on the local market.
He said that while the ongoing global financial crisis is a wake-up call for Nigerian banks, none of the 24 local banks is affected by the crisis. While noting that "Nigerian banks are not yet into the kind of exotic products that led to the problems of those institutions abroad.However, the industry operators must be on alert to avoid the type of investments and consumer lending that would put the system on tailspin.
Nigerian Banking industry is also taking the development in the world's financial markets as a wake-up call for refocusing the international expansion because if such crisis occurs in five years time, many Nigerian banks may be affected just like other global players, as they would have been fully integrated into the global markets and therefore should be wake up for a home-grown strategy and attention to risk management principles as business network and volumes grows.
He also said that "the financial crisis is a wake up call on banks’ top executive management, especially the Chief Executives, to have eyes for details and be fully in-charge of the key levers of the business. There is no room for absentee CEOs, but one who is in constant touch with the realities on ground in the running of their organizations.
He said that while the ongoing global financial crisis is a wake-up call for Nigerian banks, none of the 24 local banks is affected by the crisis. While noting that "Nigerian banks are not yet into the kind of exotic products that led to the problems of those institutions abroad.However, the industry operators must be on alert to avoid the type of investments and consumer lending that would put the system on tailspin.
Nigerian Banking industry is also taking the development in the world's financial markets as a wake-up call for refocusing the international expansion because if such crisis occurs in five years time, many Nigerian banks may be affected just like other global players, as they would have been fully integrated into the global markets and therefore should be wake up for a home-grown strategy and attention to risk management principles as business network and volumes grows.
He also said that "the financial crisis is a wake up call on banks’ top executive management, especially the Chief Executives, to have eyes for details and be fully in-charge of the key levers of the business. There is no room for absentee CEOs, but one who is in constant touch with the realities on ground in the running of their organizations.
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