Shareholders of First Bank of Nigeria Ltd. have tasked the Central Bank of Nigeria (CBN) on policies that would guard against insider-related borrowings by bank directors in the industry.
They disclosed this in an interview with Newsmenon Friday in Lagos, while reacting to the apex bank’s action on FirstBank.
Dr Farouk Umar, President, Association for the Advancement of the Rights of Nigeria Shareholders said that 90 per cent cause of bank failure was due to non-performing loans related to insider credit.
Umar said the apex bank should come up with policies that would prevent directors from borrowing from the banks they acted as directors in order to protect shareholders and depositors.
Umar said the CBN action of dissolving the directors of FirstBank would be a lesson to all operators in the banking sector.
He added that regulators should compel banks and companies to report any regulatory query in their annual reports, for shareholders to ensure directors’…
Source: Vanguard Newspaper