AMCON wants FG to reintroduce Failed Bank Act

The Managing Director/Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON), Mr Ahmed Kuru, on Wednesday, called on the Federal Government to revisit the Failed Bank Act to enable operatives in the banking sector account for their actions.

Kuru made the call when officials of Risk Management Association of Nigeria paid a visit to AMCON’s Lagos office.

According to a statement from the body, he urged banks to immediately strengthened their risk management framework to stem the negative growth.

He added that when introduced into the country’s financial system, the Failed Bank Act would curtail the current trend of financial rascality on the part of some bankers which would then bring discipline to the industry.

He maintained that there was need to fight against impaired and arranged credits.

He noted that one of the reasons for the failure of the banking system during the global financial crisis of 2008/2009, which eventually led to the creation of AMCON was because of the prevalence of weak risk management framework by financial institutions.

“I have been on both sides, therefore, I can authoritatively comment on issues relating to risk management.

”Immediately after the intervention of the Central Bank of Nigeria in 2009, they insisted that risk management must be given prominence right from the board level to the account officer,” he stated.