Stakeholders hinge credit management on trust
Stakeholders at ICA Credit Managers Conference 2019 in Lagos have said that the importance of trust in credit management for economic growth cannot be over emphasized.
With the theme: ‘Managing credit for economic growth’, the stakeholders also observed a secular decline in ethical standards as corporations push their employees beyond ethical boundaries to deliver.
The Managing Director, Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, who spoke on ‘How lack of integrity and trust undermines economic growth,’ noted that the essential ingredient that underpins the viability of all credit system globally is trust.
Represented by the Senior Vice President AMCON, Iyatun Adobe-Kobiti, he stated that trust is a problem they face all the time, but it is not always given the requisite thoughts.
“The lack of integrity within our current system of credit and, indeed, across the financial system is severely hurting the economy. Our financial system is the enabler of corruption as it serves as the funnel with which funds are misappropriated, siphoned and out rightly varnish,” he said.
As a way out, Kuru stressed that re-orientation towards credit has to be displayed from both the lenders and borrowers.
Similarly, Amieye-ofori Felix, who spoke on Ethics and Professionalism in Credit Management, argued that as credit remains the undisputed oxygen and bloodline for the global economy, in the face of ever-increasing technological disruptions and competitiveness, the modern credit professional must be ‘a fit-for-all’ practitioner, in order to stay in business.
“While they focus on delivering value to their stakeholders, they are equally faced with the temptation to cut corners, in order to gain more market share against the competition. This is where unethical and unprofessional practices silently creep in, and the costs and consequences of such practices, are deleterious.
“While we cannot discountenance the place of ethical codes in the organisation, the codes must move from the boards to the hearts of the people in the organisation. It calls for the full participation of every person from the stables of the shareholders to the Board and cascaded down through the rungs of management to the entire staff. The government must also begin to form collaborations, just as the CBN with the Bankers Committee to confront this monster in the financial sector if they must avert another financial crisis.”