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Examining Stanbic IBTC vis-à-vis banking industry compliance and corporate governance practices

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5 years ago

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At a recent function in Abuja, the Managing Director/CEO of the Nigeria Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, delivered a lecture where he revealed that there has been a consistent decline, over the past three years, in the recorded rate of successful fraud incidences, thefts and forgeries in the banking industry. Specifically, Ibrahim said such cases had declined by almost half, 48.12%, of the rate it was in 2015. 

In response to how the industry was able to achieve such impressive reductions, Ibrahim, while putting in perspective the key reason for frauds to help buttress his response, explained that poor corporate governance practices in terms of regulatory and supervisory oversight and compliance allow frauds and forgeries to thrive. So all that needed to be done was to ensure a stronger corporate governance practice. He said the reduction is indicative of the strict adherence to sound corporate governance practices by banks, which include compliance with regulations. 

Indeed, experts at a recent workshop organized by the National Institute of Compliance (NIC) agreed that compliance is at the heart of sound banking practices and sustainable banking and that the risk of banking industry failure is remoter now than it was some years back due to a higher level of compliance. The nature of the banking industry, with its intermediation functions, is such that failure can have very dire consequences for businesses and the economy. Thus, banks have a responsibility to ensure a stable industry and this can only be achieved by sound corporate governance practices. 

In the 90s and early 2000s, regulatory and supervisory oversight was weak and compliance by banks to regulations was mainly in the breach. Then, the industry was an all comers’ affair, mostly populated by charlatans who see the industry as mainly a meal ticket. Banks were being opened at a dizzying pace then, with sometimes three or four opened in a month. Before the recapitalization exercise of 2005, there were close to 200 banks in the country. There was widespread corruption in the industry at the time, which led to billions of naira of depositors’ money and investors’ funds lost or misappropriated. But following the recapitalization exercise and especially after the global financial crisis of 2008, corporate governance became a major issue leading to the introduction of a raft of corporate governance codes. 

For a bank like Stanbic IBTC, regulatory compliance comes like second nature. The brand’s penchant for regulatory compliance was validated in 2015 at the maiden edition of the Corporate Affairs Commission’s Corporate Citizens Awards. Stanbic IBTC Bank came first for compliance among Nigerian banks and was awarded the Most Extensive Compliance award. According to CAC, “over 800 companies were nominated for the awards, only 26 companies made the final list, out of which the nine winning companies emerged,” including Stanbic IBTC and three other banks.

Certainly, there is no better validation than a regulator attesting to a company’s good corporate citizenship. And it is no surprise that a bank like Stanbic IBTC was adjudged the first among equals in terms of compliance. Many sometimes view the bank’s processes and policies as cumbersome because of the different layers of regulatory requirements it insists must be met before a transaction can be consummated. But then on the flip side is that Stanbic IBTC Bank is one of the most secure, transparent and trusted financial institutions in the country today. These qualities continue to translate into very strong financial performances in its operations and a bullish outlook for the stock at the Nigerian Stock Exchange. In its 2018 financial report, Stanbic IBTC Bank posted an impressive 54% growth in PAT. Balance sheet grew by 20% to N1.6 trillion, driven mainly by deposit growth of 7%. And most importantly, was able to improve its asset quality as ratio of non-performing loans to total loans improved to 3.9%. 

Financial institutions, particularly Stanbic IBTC, fully appreciate and understand that their survival depend on how well they are able to manage the relationships amongst their stakeholders, which require them to establish and maintain harmony between parties whose interests sometimes conflict. It is the management of such relationships that corporate governance code embodies. It is this realisation that led banks to self-regulate when in 2003 the Code of Corporate Governance for Banks and Other Financial Institutions in Nigeria was established by the Bankers’ Committee and CIBN. 

Stanbic IBTC’s strong corporate governance practices is critical to the financial institution’s continued growth trajectory. The seamlessness of its change of leadership last year was quite impressive and such practices will no doubt give it the desired stability to further increase its market share and to post impressive financial results, going forward.

With the 2003 code, the 2014 CBN code and a spate of regulations by the apex bank as situation demands, which makes for a stronger regulatory oversight, one can almost argue that the possibility of a banking industry failure is remoter than constant uninterrupted power supply in the country. Despite the cost of compliance, which can sometimes be huge and burdensome in terms of time and direct cost, and the risk of managements of banks becoming particularly focused on compliance at the expense of doing business, financial institutions remain resolute in ensuring a strong and viable industry. And this is beginning to produce dividends as shown by the recent NDIC figures and the industry’s financial scorecards. 


Today, banks sometimes face the wrath of stakeholders as they strive to comply with regulatory directives. A case in point was the directive by the CBN that banks publish the names of delinquent debtors on its books, which did not go down well with some customers. Another was the foreign exchange utilization position, mandated to be published weekly, and the various restrictions to dollar disbursements to bank customers. Treasury Single Account (TSA), which required all agencies of government to each maintain a single account with the CBN, leading to the withdrawal of trillions of naira from commercial banks, was another policy that banks would have gladly avoided but nonetheless diligently complied with. And most recently is the ‘appointment’ of banks by the Federal Inland Revenue Service as tax collecting agents, which pitched the banks directly against some of their customers and trade partners. 

There is no doubt that there is a new compliance orientation in the banking industry. And as banks like Stanbic IBTC, Zenith Bank, Access Bank and UBA continue to lead the financial services industry towards improved compliance levels, it will not only check corruption in the banking industry and risk of possible collapse, it will, due to banks’ pivotal role in the economy, help sanitize business practices and thereby attract investors and boost the economy.

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Sahara weekly online is published by First Sahara weekly international. contact [email protected]

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Infrastructure Upgrade: Zenith Bank Apologizes for Disruptions, Assures Customers on Improved Services

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5 hours ago

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October 3, 2024

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ZENITH BANK MAINTAINS LEADING POSITION IN PROFITABILITY AS PBT SOARS TO N727 BILLION IN H1 2024 RESULT

 

Infrastructure Upgrade: Zenith Bank Apologizes for Disruptions, Assures Customers on Improved Services

 

 

 

Nigeria’s leading financial institution, Zenith Bank, has reassured its customers of improved services following recent infrastructure upgrades.

In a message posted on Thursday, the bank apologised for the service disruptions experienced across its e-channels during the upgrade period.

The bank clarified that the glitches were a result of routine information and technology maintenance, which is essential for optimizing service delivery.

Zenith Bank emphasized its commitment to ensuring 100% uptime, stating that it takes this responsibility “very personally” and continuously allocates resources to maintain uninterrupted service availability.

In the statement, the bank expressed its sincere apologies for any inconvenience caused to customers during the upgrade process, highlighting that the information technology enhancements are designed to improve the quality of service for its esteemed clientele.

The message reads in part:

Dear Valued Customer,

We sincerely apologise for the service disruptions you experienced recently on our banking channels. This was due to an information Technology upgrade aimed at improving the quality of service we provide.

We have made significant progress with the upgrade and you can now perform transactions conveniently with the following Zenith bank Channels:

Your Zenith Bank Debit Card
The Zenith Bank Mobile App
The Zenith bank Internet Banking Platform
Zenith Agents nationwide (Agent Banking)

You can also visit any of our branches nationwide to perform your transactions

Please direct all enquiries to Zenith Direct on +234 201 278 7000,
0700ZENITHBANK, 0904 085 7000 Or via email at [email protected]

Thank you for banking with us

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FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

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8 hours ago

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October 3, 2024

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FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

 

 

Fanafillit Integrated Concepts, the visionary force behind the annual GLOWFUX Charity Concert, has revealed its ambitious plans for the 2024 edition. Slated for December, this year’s event aims to gather compassionate Nigerians for a powerful and heartwarming initiative, designed to bring joy to the lives of special children. The event promises not only world-class entertainment but also a deeply moving experience for all attendees.

 

 

In an official statement, Miss Rebecca Olaniyan, the Coordinator for the 2024 GLOWFUX Charity Concert, announced the theme: “UNITING HEARTS, TRANSFORMING LIVES.” This theme encapsulates the core purpose of the event—fostering unity through acts of love and compassion, resulting in profound and lasting change for both individuals and communities. “This theme underscores the concert’s mission of creating connections that inspire growth and empowerment,” Miss Olaniyan explained, as the concert continues its tradition of supporting children in orphanages and special needs homes.

The 2024 edition introduces a thrilling new twist with a change of venue to the historic National Museum, Onikan, Lagos. According to Mr. Olubode Mac Oserinde, initiator of the GLOWFUX Charity Concert and Team Lead at FANAFILLIT, this change is designed to offer guests an even richer experience. “With this year’s edition at the National Museum, GLOWFUX Charity Concert is set to elevate the event experience,” he noted. “The museum’s serene and culturally significant environment will add a new dimension to the event, ensuring that it not only entertains but also educates and enriches our guests.”

One of the key highlights of this year’s concert is the lineup of extraordinary young talents, aged between 7 and 16, who are poised to mesmerize the audience. Gospel sensation Feranmi Golden Angel, dynamic entertainer Vanessa Jones, proverb maestro Chief Adigun Olowe, and dexterious saxophonist Dom Sax will lead the entertainment. Their youthful exuberance and remarkable skills are sure to inspire both the children and adults in attendance, offering a unique perspective on how young minds can make a powerful impact.

Kicking off the day, the GLOWFUX Carpet session will run from 11:00 a.m. to 1:00 p.m., offering guests a glamorous and engaging introduction to the event. The main concert will then follow from 1:00 p.m. to 6:30 p.m., ensuring a day full of joy, laughter, and heartwarming moments.

This year’s concert will also feature the traditional induction of new GLOWFUX Young Ambassadors, a momentous occasion where young advocates are recognized for their commitment to making a difference. Additionally, the GLOWFUX Hall of Charity Awards will honor outstanding contributions to the community, with awards in the categories of GLOWFUX Man of the Year, GLOWFUX Woman of the Year, GLOWFUX NGO of the Year, and GLOWFUX Socially Responsible Corporate Brand of the Year.

 

FANAFILLIT sets to Unite hearts and transform lives with GLOWFUX 2024

In a significant addition to the program, attendees can look forward to an enriching motivational talk on the power of giving with love. The concert organizers are currently in discussions with Rotarian Femi Adenekan, Governor of Rotary District 9112, to deliver this insightful keynote address, which will further emphasize the concert’s message of generosity and kindness.

As always, the GLOWFUX Charity Concert is open to the public, inviting individuals to celebrate with the special children, who are treated as VIP guests. Attendees are encouraged to bring gift items for the children and to join in the spirit of giving.

The entertainment lineup for the day is brimming with excitement, with performances from talented young stars and appearances by Hilary Jackson and his Dance Group. First Class Comedy will provide comic relief, ensuring that the audience is treated to both inspiration and laughter. The event will be hosted by the dynamic duo of Princephelar and MC Luwy, while popular child-skitmaker Akorede is expected to make a special appearance as a celebrity guest.

The GLOWFUX Charity Concert is open to the public, inviting individuals to celebrate alongside the special children treated as VIP guests with complimentary food, drinks, and entertainment for everyone. Attendees are encouraged to bring gift items for the children and join in the spirit of giving. Guests can register at https://donate-ng.com/campaign/glowfux-2024 to secure their spot at this memorable event.

The 2024 GLOWFUX Charity Concert is supported by notable brands, including Elegushi Royal Stool, iCare Foundation, Courteville Solutions PLC, Seniors Wellbeing Foundation, Hands Lifting Hearts Initiatives, Danone, Seven-Up Bottling Company, Primero Transport Ltd, Fidson Healthcare, Beloxxi Biscuits, AkModel Properties, Corsican Brothers, KingsMead Group of Schools, MALENS Diagnostics, Headway Events, DJ MAPS Productions, Epee Tech Solutions, SIFAX group, and 3Zs Fabrics.

Media support will come from an array of respected outlets, including AIT, Global Excellence magazine, theeagleonline.com.ng, KRAKS TV, newspop.com, theelitesng.com, freedomonline.com.ng, PULSE NG, saharaweeklyng.com, thegazellenews.com, pmexpressng.com, freelanews.com, thecitypulsenews.com, societyreporters.com, theimpactnewspaper.com, thestatusng.blogspot.com, mockinbird.com.ng, omonaijablog.com.ng and others. This comprehensive media coverage ensures that the concert will reach a broad audience, amplifying its impact.

For those looking to contribute, the GLOWFUX Charity Concert offers numerous avenues for participation, partnership, and sponsorship.

For all inquiries related to participation, partnership, or sponsorship, please contact:
– 07085755549
– 07032312815
– 09159712472

To support this noble cause, donations can be made to:
Account Name: GLOWFUX Concert
Account Number: 8554972016
Bank: FCMB

GLOWFUX Charity Concert: Giving happily to live happily.

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SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

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22 hours ago

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October 2, 2024

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SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED (CNBM) IN LAGOS ON WEDNESDAY, OCTOBER 2, 2024.

 

SIGNING CEREMONY OF THE STRATEGIC COOPERATION AGREEMENT BETWEEN DANGOTE INDUSTRIES LIMITED AND CHINA NATIONAL BUILDING MATERIALS GROUP CO. LIMITED

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