Managing Director of the Nigerian Deposit Insurance Corporation (NDIC), Alhaji Umaru Ibrahim, has advised stakeholders in the banking industry to improve on their credibility.

He gave the advise while speaking at the 6th Annual Banking and Finance Conference in Abuja, recently.

“Poor corporate governance and unethical practises have contributed to the failure of organisations, especially financial institutions.

This, in turn, affects the investors’ confidence and access to financial and resource allocation,’’ Umaru said.

Mr Mark Cockburn, a council member of the Chartered Institute of Bankers of Scotland, also advised senior banking officers to build professionalism and trustworthiness in themselves and their employees.

“It is not enough for bankers to be technically competent, they also need to work on their credibility. Trust is one of the key issues in the banking sector.

“Ethical professionalism builds trust in individuals, trust in individuals builds trust in institutions, and trust in institutions build trust in the nation,’’ he said.

Mr C.K Unegbu, Past President of the Chartered Institute of Bankers of Nigeria urged the management of banks to conduct an industry-wide review of employee remuneration.

“Many banks are fond of paying their top employees very high emoluments to the detriment of their mid and low-level staff as well as the capital of their banks. It is high time we reviewed that,’’ Unegbu said.

Mrs Florence Fadelu, Deputy Director, Banking Supervision Department of the CBN, also decried the unethical practises of some banks in Nigeria.

She said, “During our supervision, we realised that some banks are fond of altering their balance sheet to avoid paying the NDIC insurance premium.

“Most of these people are chartered bankers, and such acts are obviously unethical. We have to do things right and always remember that credibility is the soul of banking.”

The Managing Director of NDIC, Ibrahim, also called the attention of the bankers to the aspect of building human capital.

He said, “Banking goes beyond just financial accumulation. Human capital building, which is also very important, has been overlooked and replaced with financial accumulation.

“Henceforth, we need to de-emphasis deposit mobilisation and reward the hard work and dedication of employees.”