RIMAN was led by its president, Magnus Nnoka, who is also the Chief Risk Officer, Coronation Merchant Bank.
The management of banks, he said, will strengthen their risk management framework to stem the negative growth in the economy.
“The reintroduction of the Failed Bank Act into the country’s financial system will not only curtail the current trend of financial rascality on the part of some bankers, it will bring discipline to the banking industry in general,” he said.
One of the reasons given for the failure of the banking system during the global financial crisis of 2008/2009, which eventually led to the creation of AMCON, Mr Kuru recalled, was the prevalence of weak risk management framework by financial institutions.
The official said the trend became baggage, which contained all sorts of bad omen for the economy, including poor corporate governance structure, lack of robust risk management strategy and lack of adherence to laid down principles that govern credit approvals by financial institutions.
“Immediately after the 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 officer.
“What we have noticed now is the lack of consequent framework to manage the risk structure. We have noticed prevalence of key men risk.
“Credits are booked with impunity without any intention of paying back. The grievous impunity is taking place along the credit process. There is the urgent need to revisit the failed bank act so that operatives become responsible for their actions. We believe it will bring discipline to the banking industry,” Mr Kuru said.
Currently, the AMCON MD said, the debt recovery agency sits on a huge stock of non-performing loans, with banks looking for liquidity to book more loans.