Nigerian banks struggling to comply with regulatory policies

List Of Banks In Nigeria
List Of Banks In Nigeria

  – As Banks come under pressure to remain profitable

Nigerian banks struggling to comply with regulatory policies – Banks are under pressure to not only comply with the ever-changing regulations, but also to modernise their systems and remain profitable as competition with Financial Technology (FinTech) firms thickens, Senior Business Solutions Manager, Pre-Sales Risk Practice, SAS Charles Nyamuzinga, has said.

He spoke at the SAS Risk & Finance Analytics Roadshow in Lagos.

He noted that banks  face additional challenges, including risk analytics skills shortages, data management issues and integrating their risk management and finance processes across the enterprise. But, on the positive side, they have started considering technology as a way of eliminating these challenges and have access to new streams of data that are also helping to advance the financial inclusion mandate.

SAS, a leading global analytics firm, as a technological partner for banking institutions has always played a proactive role in fostering innovation and transformation of processes and systems, from regulatory compliance to strategic decisions support, from digitisation to risk assessment in real-time and also providing analytics solutions allowing banks to adapt more quickly to regulatory changes while minimising costs.

Recent regulatory changes in the banking industry mean that banks across Africa should already be compliant with the new IFRS 9 accounting standard, which changes the way they calculate expected credit losses.

There is also the need to start thinking about the new ‘Basel IV’ framework, which impacts on how banks calculate their risk weighted assets and the amount of capital they need to offset those risks.

Other issues, which banks are  grappling with include incorrect modelling caused by data management and quality issues, skills shortages, drawing data from some disparate systems, credit loss calculations, and risk modelling.

DISCLAIMER

Comments expressed here do not reflect the opinions of  FINANCIAL WATCH or any employee thereof

Filter:AllOpenResolvedClosedUnanswered
OpenShola Williams asked 3 weeks ago • 
251 views0 answers0 votes
OpenYetunde Koka asked 3 weeks ago • 
247 views0 answers0 votes
AnsweredHassan Abdul asked 1 month ago • 
374 views7 answers1 votes
OpenOpeyemi Jerome asked 1 month ago • 
246 views0 answers0 votes
AnsweredMike Ugezeh asked 1 month ago • 
247 views1 answers3 votes
AnsweredAdeyemi Osas asked 1 month ago • 
404 views3 answers3 votes
OpenShola Williams asked 1 month ago • 
316 views0 answers1 votes

Be the first to comment

Leave a Reply

Your email address will not be published.