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AMENDMENTS TO BANKING ACT SOUGHT

The government is currently working on amendments to the Banking Act to include a clause that would hold accountable executives of failed banks.

The amendments are a result of high bank failures witnessed mainly by indigenously owned banks.

At least 10 institutions over the past few years have either collapsed or were put under curatorship with the same ailments — concentrated shareholding, weak corporate governance, owner-managed or controlled and insider loans — which all turned out to be non-performing.

The amendments seek to establish cooperation between different financial regulatory authorities and make banking institutions responsive to their customers’ needs and to encourage the resolution of disputes between banks and their clients.

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