Prolonged litigations on financial matters impede banks’ capacity to support SMEs — CEOs

The Board of Banks’ Chief Executive Officers (CEOs) says that prolonged litigations of financial cases and enforcement bottlenecks impede banks’ capacity to support Small and Medium Enterprises (SMEs).

Chairman of the Board, Mr Oliver Alawuba, said this at the 23rd National Seminar on Banking and Allied Matters for Judges organised by the Chartered Institute of Bankers of Nigeria (CIBN) Tuesday in Abuja.

Alawuba, also the Group Managing Director of the United Bank for Africa (UBA), said the delay also stopped credit access and raise cost of capital.

He said that judicial delays, overlapping jurisdictions also increased the risk profile of financial transactions.

Alawuba called for specialised financial courts or commercial divisions within existing courts, as done successfully in Kenya and India

According to him, justice delayed is not only justice denied, but justice mutilated. “Time is key to financial justice, this seminar, therefore, is not just timely, it is strategic.

”It is my hope that from this forum, we can advance the following, a harmonised legal framework for financial dispute resolution across all jurisdictions.

”Digitisation of judicial processes, building on the strides already made through e-filing and virtual court sittings is necessary.

”Also, judicial capacity building in areas such as digital banking, fintech, and cybercrime sectors that are rapidly redefining financial intermediation, ” he said.

Mr Olusegun Alebiosu, the Managing Director/Chief Executive Officer, First Bank Group, stressed the need for the banks, financial systems sector and the judiciary to collaborate to save the society.

Alebiosu who said that cybercrimes were increasing on a daily basis, called for timely delivery of justice on financial cases.

Prof. Pius Olanrewaju, the President, Chartered Institute of Bankers of Nigeria (CIBN), said the institute was committed to fostering ethical conduct and professionalism within the banking industry.

He said the institute aimed at entrenching the culture of ethics, professionalism, and integrity in the industry through alternative dispute resolution mechanisms, which would help alleviate the burden on the state’s judiciary.

He said the seminar with the theme, “Justice and Finance in Partnership: Enabling Trust, Security and Nigeria’s Economic Growth and Development”, was apt.

This, he said encapsulated the essential link between a strong judicial system and a sound financial system.

The two-day seminar attracted stakeholders from the banking and the judiciary from across the country.