Frontiers in Management Research

Number 4, 2017

10
Bank Failure in Nigeria: Evidence of Prudential Regulator Laxity

Authors: Iwedi Marshal

Abstract

View in PDF

Number of views: 1601

The series of bank failure in Nigeria have raised doubt in the minds of banking and non banking public about the efficacy of the prudential regulator and its frameworks. This is due to the fact that a substantial number of these groups are questioning the roles of the prudential regulator saddles with the responsibility of regulating and supervising the activities of banks together with the laws governing the operation and conduct of banking business in Nigeria. The incessant failure witness in the banking sector over these years is captured by the number of failed banks, spate of non performing credits, the debt and extent of required capitalization, loss of depositors funds and the general impact on the economy all of which underscores the importance of the sector. A study of this nature examined bank failure in Nigeria and those responsible for such series of failures. It was discovered that the Nigeria banking sector regulatory authorities are responsible and are to be blamed for these incessant rates of failures in the banking sector of the Nigeria economy. We conclude that the failure experience in the sector in recent times is attributed to regulatory laxity on the part of the prudential regulators occasioned by their inability and delay to carry out some of its routine, off site, and on site functions as stipulated in the mandate establishing CBN and failures to ensure compliance to the prudential guidelines.

15
Social Experiment for Rural India: Addressing Indian Farmers Suicide Problems via Wireless Technology

Authors: Frank Lorne, Roy Lai, Rimjhim Rosalin, NikhilDnyandev Kurundvade, Himanshu Ratra

Abstract

View in PDF

Number of views: 533

India has a huge population, with 70% of the labor force engaged in agriculture. A social experiment is proposed in this paper for a focus study of the problem and the remedy for the Indian farmers suicide phenomenon. As a deep rooted problem in rural India, this paper suggests the need for bringing psychological consultation for the farmers, as suicide is an impulsive act that cannot be solely solved by long term infrastructure investment aiming for improvement of productivity and technology. The paper argues that the social experiment should be conducted in small scale in a remote rural setting as a small step, ideally by suitable NGOs, to more effectively isolate factors that contribute to the cause, as well as to experiment with more cost effective ways to provide remedies. Wireless technology provides the “in-the-moment” intervention for an impulsive act of selfdestruction. Although this intervention will not solve intermediate and long term infrastructure problems on the needs of farmers in rural India, it can be used as a spring board to promote other innovative initiatives of using wireless and digital technology. When farmers in primitive remote areas start using wireless technology and embrace the use of it as a habit, it will allow an easier integration with the many smart village initiatives already started and on-going in India. Promoting lifestyle is as important as promoting productivity. The social experiment will enhance sustainable development for India.

19
Board of Directors and the Limits of the Conflict of Interest Definition within Codes of Ethics

Authors: Emiliano Di Carlo

Abstract

View in PDF

Number of views: 1560

According to agency theory the main role of the board of directors (BoD) is to recognize and monitor the conflict of interest (CoI) between managers and shareholders or between the majority shareholder and minority shareholders. This monitoring role requires that board members are able to identify CoI situations. In this the code of ethics and code of conduct are regarded guides for directors, since these codes often contain the CoI policy of the firm. The objective of this study is to understand if a CoI definition is sufficient to identify CoI situations. The results of a questionnaire administrated to 18 directors who sit in the boards of several subsidiaries of an Italian listed group show that directors sometimes fail in recognising CoI situations. Thus in order to increase the effectiveness of the board, companies should provide examples to facilitate its identification and resolution.