How are Nigerian banks faring?
By Bukky Olajide IN banking, regulation is of utmost importance. In most cases when banks collapse, it is a regulation issue. Regulation issue in the sense that there must have been some unheeded warning signals. Even the on-going global financial crisis was triggered off by regulation failure. The first alarm bell rang with the 2006 HSBC results to the United States subprime mortgage crisis, which unfortunately was then ignored. That started the initial liquidity crisis. By September 2008, the turbulence had spread from the financial sector to the real economy, revealing what excessive lending under loosened underwriting and lack of risk management had caused. The importance of risk in any endeavour cannot be over emphasised less a financial institution which underscores the fact that public confidence in financial institution is critical to their solvency. Risks management encompasses the whole structure, processes, procedures and policies which an organisation has instituted to iden
