Ecobank adopts new measures to boost risk management processes
Ecobank Group has unfolded plans to review its credit management procedure with renewed emphasis on risk monitoring and adoption of enhanced risk based assessment method.
Besides, the bank also announced the establishment of a transaction approval process, involving senior risk and business managers to ensure that all lending adheres to the bank’s risk appetite.
The Group Chief Executive Officer of the bank, Ade Ayeyemi, explained that these are part of the bank’s growth plans to enhance profitability and increase market share in the industry.
According to him, the bank has introduced more granular risk tolerance limits to be monitored by senior management, with zero tolerance to non-compliance.He added that the bank has established dashboards to monitor the development of key risk indicators for subsidiaries in order to strengthen internal control.
“We are implementing a new credit management model that has been approved by the board of Ecobank TransNational Incorporated (ETI), and executive management committee to coordinate and direct strategic credit initiatives.
“This will include the introduction of regional heads of credit who will supervise the credit portfolio, people, processes and governance in each of our regions. We will also introduce industry approvers to ensure consistency and quality of transactions and sector specific loan portfolio.
“We have established a transaction approval process, involving senior risk and business managers to ensure that all new lending adhere to Ecobank’s risk appetite. Credit management training, introduced last year for both business and credit personnel will be rolled out further.”
Furthermore, the Ecobank boss stressed the bank’s resolve to build the most efficient digital banking platform in Africa by leveraging both the group and partner’s disruption capabilities and reach about 100 customers.
“The application of digital technologies presents ample opportunity to expand and enhance our customer delivery channels, thereby enabling us to deliver superior customer experience and in turn potentially increase shareholders’ returns.”
The Chairman of the bank, Emmanuel Ikazoboh, said the bank has concluded plans to increase local participation within the countries of operations, in order to ensure that its activities reflect the interest of minority shareholders.
He, however, noted that the bank must ensure that it addressed all business impediments, especially in the areas of risk management processes and stringent organisation and management to increase shareholders’ value on investment.
He added that the bank is working with the International Finance Corporation (IFC), and the European Investment Bank (EIB), to bridge the gap for SMEs across sub Saharan Africa.
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