Don advocates professionalism in banking sector
A professor in the department of Banking and finance, Nnamdi Azikwe University, Steve Ibenta has called for professionalism in the banking sector as a way of driving rapid growth and development in the nation.
The educationist also emphasised on the need for core trained professionals to engage in banking job and other financial institutions saying that this would have positive impact on the economy of the nation.
Ibenta said this at the 2nd National Conference of Educators in Banking and Finance in Nigeria, themed: ‘The Dynamics of Stabilizing the Nigerian Economy through banking and finance education held at the international conference center University of Ibadan.
The event which was co sponsored by the chartered institute of bankers of Nigeria, the National Universities Commision and National Board for Technical Education had lecturers in banking and finance from different tertiary institutions in attendance.
According to him, “The banking industry is the oil that greases the wealth of the economy. That is, they provide the financial resources needed for the industry and production to go on; production of goods and services. This is what the economy and finances is all about and for this important function to be executed efficiently u must make sure that core professional are in the banking industry and other financial institution because they are all in the process of financial intermediation.
“However, the banking industry happens to be the most important so there’s need to ensure that well trained professionals are engaged in the sector so that we will have squared peg in squared hole and the banking system will start working and the economy of the nation will start working and this nation will have a rapid growth and development.
Speaking on the decline in profit of the banking sector and the claim on the dwindling oil sector in the country, the professor said, the productive sector is the only avenue by which banks can generate wealth.
If banks are doing what they should do in the economy we will not depend on oil in the first place. So, this tells u again that all the bumper profit they have been declaring are artificial because the wealth of banks should come from the productive sector.
If they channel their resources by way of loans and advance to the productive sector and they turn around their products and create surplus wealth, they will pay bank their interest and dividends and banks will be profitable but when the industry is not financed or producing and it is dying where will the profit of banks come from. We need to understand the reality of the economy situation.
“The productive sector is the only avenue to create wealth. The banking industry doesn’t create any wealth, their job is to ensure that finances are available wherever the economic agents are ready to work and produce, they make money available and within this, they are charged their interest and are commissioned.
“So, if the oil sector is dead now does it mean that this economy can no longer function, and this country will then stop working because there is no oil. How many country in this world are without oil and are doing very well so banks should understand their functions; the core mandate that they are require to fulfil and to do this you need to put the relevant frame work in place. Allow only people who are trained to do this job to do it, so that they will be able to evaluate project, analyse business activity, reduce the financial projection, do visibility analysis and make sure that funds only go to where they will create wealth and this economy will grow.
In her remarks, the president of CIBN, Otunba Mrs ‘Debola Osibogun said the occassion was auspicious at this time considering the daunting challenges facing the global economy as a whole and the country in particular.
Osibogun said that the banking and finance sector is critical to tackling these challenges and ensure effective functioning of the whole economy.
She said: it would not be out of place to collectively call for a revamping to reflect current realities, of the teachings of the banking and finance courses in our various academic institutions. Such a collective decision should nevertheless stem from a thorough deliberation and critique of existing methodologies as well as proposing improved ones that would positively impact on our economy.
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