Expert Accuses Banks Of Not Applying ‘Basic Tenets’

The Managing Consultant of Riche Professionals Consulting Limited, Mr Olusegun Ajibola, on Friday accused Nigerian banks of not following “basic tenets’’ while making loans available to their customers.

Ajibola told The Tide source in Lagos that banks‘ failure to apply basic lending rules was responsible for the crisis in the financial sector.

“We allow sentiments, emotions and vested interest to guide lending behaviours and lending practices.

“We should dump all these and return to the basics,’’ he advised.

Ajibola, a former Executive Director in one of the new generation banks, called on banks to abide with the principles of lending and allow structuring of credit facilities to have its way.

He urged that “those things which have to do with sentiments, emotions, vested interests and compromises’’ must be done away with.

“That is the only way we can ensure sanity in credit management,’’ he said.