Sound corporate governance key to strengthening Nigeria’s Banking Sector – FBN Merchant Boss

Sound corporate governance goes beyond compliance and check-lists; it must become a way of life. We have a duty to ensure that it permeates the length and breadth of our banks, Mr Kayode Akinkugbe, Managing Director and CEO of FBN Merchant Bank Limited, an FBN Holdings Company, said.

Kayode Akinkugbe, MD CEO, FBN Merchant Bank

Akinkugbe, said this during while delivering his keynote address at the recently held Monthly meeting of the Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN).

In his address titled “The Place for Sound Corporate Governance in Today’s Banking Institutions”, he noted that the principles of corporate governance must form the basic framework for ensuring that stakeholders are able to enjoy long term benefits and value from banks, adding that they also serve as strong pillars that ensure overall market confidence in institutions.

According to him, the institution of corporate governance, backed by legislative, economic and financial reforms intended to promote transparency, accountability and the rule of law in the economic life of the country, are critical in assuring the banking public retains trust and confidence in such essential of bodies.

Akinkugbe stated; “this not only ensures compliance with legal and ethical standards, but helps in building the strength of financial institutions within an economy.”

He further emphasised that in recent years, corporate governance has attracted considerable interest, particularly following the global financial crisis and other corporate scandals, which has and led to the promulgation of rules and directives aimed at creating strong internal systems and controls that are comparable for financial institutions across the globe.

“We are proud to be part of a larger Group, FBN Holdings Plc,  which has a strong heritage of promoting corporate governance practices that has resulted in over 120 years of uninterrupted service and continued growth” he said, as he restated the commitment of FBN Merchant Bank towards maintaining a strong posture on sound practices.

In his conclusion, Mr. Akinkugbe charged all Chief Compliance Officers to engage, review and update policies and procedures to meet our evolving business needs, and ensure familiarisation amongst all stakeholders. “This is critical to ensuring that our goal of running sustainable banking institutions is achieved”, he reiterated.

The monthly Committee of Chief Compliance Officers of Banks in Nigeria (CCCOBIN) meeting brings together top compliance officers in banks, industry top players, investors, financial institutions and private equity firms who meet to exchange ideas, and also showcase available opportunities for progress.