financial institutions – Save Western OH http://savewesternoh.org/ Mon, 07 Mar 2022 05:39:49 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://savewesternoh.org/wp-content/uploads/2021/08/cropped-icon-32x32.png financial institutions – Save Western OH http://savewesternoh.org/ 32 32 Sri Lankan financial firms raise 12.5 billion rupees of new capital https://savewesternoh.org/sri-lankan-financial-firms-raise-12-5-billion-rupees-of-new-capital/ Mon, 31 Jan 2022 08:00:00 +0000 https://savewesternoh.org/sri-lankan-financial-firms-raise-12-5-billion-rupees-of-new-capital/ ECONOMYNEXT – Nine financial firms in Sri Lanka have raised 12.6 billion rupees to shore up their capital and also offered consolidation plans, the central bank said. Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri […]]]>

ECONOMYNEXT – Nine financial firms in Sri Lanka have raised 12.6 billion rupees to shore up their capital and also offered consolidation plans, the central bank said.

Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd raised 12.5 billion rupees.

12 other companies are being consolidated.

The full statement is reproduced below:

Accelerated Non-Banking Financial Institutions Consolidation Master Plan

Under the Master Plan for the Consolidation of Non-Banking Financial Institutions (the Master Plan) implemented by the Central Bank of Sri Lanka (CBSL), the following 9 companies have already introduced new capital of Rs 12.56 billion to meet regulatory capital requirements: Sarvodaya Development Finance PLC, Dialog Finance PLC, Asia Asset Finance PLC, Lanka Credit and Business Finance PLC, People’s Merchant Finance PLC, Softlogic Finance PLC, Merchant Bank of Sri Lanka & Finance PLC, UB Finance Co Ltd and Richard Pieris Finance Ltd.

In addition, 12 companies submitted their acquisition/consolidation plans to CBSL and obtained the relevant preliminary approvals as follows:

1. Assetline Leasing Co Ltd – acquisition of Kanrich Finance Ltd’s finance business license and settlement of its deposits.

2. LB Finance PLC – acquisition and subsequent merger of Multi Finance PLC.

3. SMB Leasing PLC – acquisition of Swarnamahal Financial Services PLC’s finance business license and settlement of its deposits.

4. Commercial Leasing & Finance PLC – acquisition and subsequent merger of Sinhaputhra Finance PLC.

5. HNB Finance PLC – acquisition and subsequent merger of Prime Finance PLC.

6. LOLC Finance PLC – merger of Commercial Leasing & Finance PLC.

As a result of the above developments, the non-banking financial institutions sector has seen significant improvement in compliance with regulatory capital requirements and recorded the lowest levels of non-compliance in recent times.

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Digitization is positive for financial companies https://savewesternoh.org/digitization-is-positive-for-financial-companies/ Wed, 19 Jan 2022 08:00:00 +0000 https://savewesternoh.org/digitization-is-positive-for-financial-companies/ Financial firms that have invested in digitalization in 2021 are already feeling the positive effects, according to a new survey from Broadridge Financial Solutions. Broadridge surveyed 750 financial institutions, with total assets or AUM of sample companies ranging from $1 billion to over $500 billion globally. They were asked various questions about their implementation of […]]]>

Financial firms that have invested in digitalization in 2021 are already feeling the positive effects, according to a new survey from Broadridge Financial Solutions.

Broadridge surveyed 750 financial institutions, with total assets or AUM of sample companies ranging from $1 billion to over $500 billion globally. They were asked various questions about their implementation of digital transformation and technology adoption.

44% of Asia-Pacific companies indicated that the pandemic has accelerated the pace of their technology implementation, and on average, companies in Asia spend about 11% of their total annual IT budget on digital transformation. In two years, the majority of these companies plan to increase their spending to 14%.

China received the highest response for acceleration, with 62% of companies saying implementation has accelerated.

There was also increased interest in blockchain and cloud-based funding options. The survey showed that while 78% of companies have already made progress in their use of the cloud in the past year, the number of companies reaching intermediate or advanced levels of implementation has increased to 80% in 2021. This statistic is expected to increase significantly to 91% over the next two years.

Blockchain usage is also expected to expand significantly in the future, with more than two-thirds (69%) of companies expecting to reach the final stages of this type of implementation in two years.

Digital ledgers were also a heavily mentioned concept in the survey, with the number of digital ledger implementations increasing from 5% to 37%.

Almost all of the companies ranked as leaders in the maturity framework were at a medium to advanced level of implementation; however, only 11% of beginners in the maturity framework were at intermediate to advanced implementation levels. This suggests an additional need to focus on helping newbies with simple and effective solutions to meet their business needs.

While starters report lower numbers, the survey shows that two-thirds of companies have already started implementing a centralized data platform with access to data across all divisions, enabling them to serve customers more comprehensively and to make better strategic decisions.

Broadridge CEO Tim Gokey says customers are thinking about new ways to grow and so are turning to new technologies.

“Digital leaders succeed with a clear vision and roadmap that prioritizes digitalized communications, experiences, and workflows by leveraging solid data and analytics,” he said.

“This year’s survey confirms that leading companies are more motivated than ever to implement the key pillars of a digital-enabled future. As a result, digital transformation leaders are experiencing accelerated growth. »

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8th National E-Summit on Non-Bank Financial Companies and Infrastructure Finance https://savewesternoh.org/8th-national-e-summit-on-non-bank-financial-companies-and-infrastructure-finance/ Tue, 21 Dec 2021 08:00:00 +0000 https://savewesternoh.org/8th-national-e-summit-on-non-bank-financial-companies-and-infrastructure-finance/ 8th National E-Summit on Non-Bank Financial Companies and Infrastructure Finance The 8th National Electronic Summit on Non-Banking Financial Companies and Infrastructure Financing will be organized by ASSOCHAM on December 23, 2021 in virtual mode. Non-Banking Financial Companies (NBFCs) play a crucial role in the economy as they provide credit to Micro, Small and Medium Enterprises […]]]>
8th National E-Summit on Non-Bank Financial Companies and Infrastructure Finance

The 8th National Electronic Summit on Non-Banking Financial Companies and Infrastructure Financing will be organized by ASSOCHAM on December 23, 2021 in virtual mode. Non-Banking Financial Companies (NBFCs) play a crucial role in the economy as they provide credit to Micro, Small and Medium Enterprises (MSMEs).

Why participate?

  • NBFCs also provide credit to consumers and others in the unorganized sector in an organized and systematic manner. As specialized financial institutions, they have unique assessment methods and better coordination and collection mechanism to deal with customers, unlike banks.

  • Infrastructure is a catalyst for growth and the way forward for infrastructure finance in India looks promising despite the macroeconomic headwinds. India’s ambition to maintain its relatively high growth depends on one important factor: infrastructure. Several alternatives and avenues of long-term financing are explored in addition to traditional sources.

  • Keeping these imperatives in mind, the Department of Banking and Financial Services of ASSOCHAM is organizing the 8th National Summit of Non-Banking Financial Companies & Infrastructure Financing of ASSOCHAM “Transforming the financial lending landscape”.

  • The result of this effort will be an increase in confidence, affordability and accessibility in the financial lending industry and market. The main guests of the event are Shri Jayant Sinha; Honorable Member, Parliament and Chairman, Parliamentary Standing Committee on Finance and Special Speech will be delivered by Shri S Raman, CMD, Small Industries Development Bank of India, Shri Ajit Pai; Distinguished Expert in Economics and Finance, NITI Aayog, Shri Ashok Soni; Executive Director, Pension Funds Regulatory and Development Authority

For further details, please contact:

Event name:8th National E-Summit on Non-Bank Financial Companies and Infrastructure Finance
Website: https://www.assocham.org/
Dated: December 21, 2021

ASSOCHAM

Address: 4th Floor, YMCA Cultural Center and Library,
01, Jai Singh Road, New Delhi – 110001
Mobile:
08447365357
E-mail: Kushagra.joshi@assocham.com

Registration link:
https://bit.ly/3e5tt8k

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New Zealand financial firms must report and act on climate change in world first https://savewesternoh.org/new-zealand-financial-firms-must-report-and-act-on-climate-change-in-world-first/ Mon, 25 Oct 2021 07:00:00 +0000 https://savewesternoh.org/new-zealand-financial-firms-must-report-and-act-on-climate-change-in-world-first/ [ad_1] New Zealand became the first country in the world to impose mandatory climate reporting for its financial sector, a move according to experts that will ensure that the adverse effects of climate change are regularly seen in businesses and ultimately help accelerate business cases. emission reductions. The new law will apply to nearly 200 […]]]>


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New Zealand became the first country in the world to impose mandatory climate reporting for its financial sector, a move according to experts that will ensure that the adverse effects of climate change are regularly seen in businesses and ultimately help accelerate business cases. emission reductions.

The new law will apply to nearly 200 of New Zealand’s largest insurers, banks, listed companies and investment managers.

Large foreign banks, including the four central banks in neighboring Australia, will also be affected.

Trade and Consumer Affairs Minister David Clark said the law was a step forward in securing a green future for New Zealand.

“It’s important that every part of New Zealand’s economy helps us reduce emissions,” Clark said in April when the legislation was first introduced, before being adopted on October 21. “Financial services and markets play an important role in New Zealand’s transition to a clean, green and carbon neutral future.”

As a rule, most financial institutions do not disclose to the outside the impact of their investments on the environment.

By making it mandatory to disclose information on “the risks and opportunities that climate change presents to their business,” Climate Change Minister James Shaw said. entities will be pushed to be more sustainable by “taking into account the short, medium and long term effects of climate change” in their business decisions.

The first disclosures are expected to be made in 2023.

The world’s first climate reporting legislation is part of New Zealand’s comprehensive climate policy, alongside demands for the public sector to be carbon neutral by 2025 and the entire nation to stay below 1.5 degrees of global warming above pre-industrial levels.

New Zealand also has its goal of net zero emissions by 2050 enriched in law.

While the new legislation has been well received, activists say the nation is still not doing enough. Methane from agriculture and waste, which accounts for more than 40% of New Zealand’s emissions, is excluded from zero emission target, leading research group Climate action monitoring assess the nation “very insufficient” climate policy.

Similar climate-related information for financial institutions can be found in Switzerland, France and United Kingdom.


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New Zealand Becomes First Country To Force Financial Firms To Act On Climate Risks | New Zealand https://savewesternoh.org/new-zealand-becomes-first-country-to-force-financial-firms-to-act-on-climate-risks-new-zealand/ Thu, 21 Oct 2021 07:00:00 +0000 https://savewesternoh.org/new-zealand-becomes-first-country-to-force-financial-firms-to-act-on-climate-risks-new-zealand/ [ad_1] New Zealand became the first country in the world to pass a law requiring financial institutions to disclose and, according to the government, act on climate-related risks and opportunities. “We have the opportunity to pave the way for other countries to make climate-related disclosures mandatory,” Climate Change Minister James Shaw said. “New Zealand is […]]]>


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New Zealand became the first country in the world to pass a law requiring financial institutions to disclose and, according to the government, act on climate-related risks and opportunities.

“We have the opportunity to pave the way for other countries to make climate-related disclosures mandatory,” Climate Change Minister James Shaw said. “New Zealand is a world leader in this area and the first country in the world to introduce mandatory climate reporting for the financial sector. “

The new rules will apply to large insurers, banks, publicly traded companies, listed issuers and investment managers. At present, most of these large New Zealand entities provide little information on what the climate crisis and global warming could mean for their future operations. By forcing them to disclose this, the law hopes to ensure that the effects of the climate crisis are consistently factored into business, investment, lending, and insurance underwriting decisions.

“Climate-related disclosures will place climate risk and resilience at the heart of financial and business decision-making,” Shaw said. “This will encourage entities to become more sustainable by factoring in the short, medium and long term effects of climate change in their business decisions. “

“This bill will require around 200 of New Zealand’s largest financial market players to disclose clear, comparable and consistent information about the risks and opportunities that climate change presents to their businesses. In doing so, it will promote business certainty, raise expectations, accelerate progress and create a level playing field, ”Trade and Consumer Affairs Minister David Clark said in a statement following the adoption of the draft. law in third reading Thursday.

James Shaw said the legislation was one of many steps the government has taken to meet its 2050 emissions targets required by the 2002 Climate Change Response Act. New Zealand has so far been very poor in meeting its climate targets.

The country is one of the worst in the world on emissions increases. Its emissions increased by 57% between 1990 and 2018, the second highest increase of any industrialized country. Earlier this year, data showed New Zealand’s emissions increased by 2% in 2018-19.

While a number of countries introduce similar legislation or regulations, officials said New Zealand’s law was the first to require companies in the financial system to report their climate exposure to investors. In June, France sets new goals which will require investors to declare how green their assets are and set greenhouse gas emissions targets every five years from 2021 – and was the first major economy to make the rules binding. Similar rules are in the works in the UK and are expected to come into effect in 2025.

When Shaw first asked for the bill last year, he said that “Australia, Canada, [the] The UK, France, Japan and the European Union are all working on some form of climate risk reporting for businesses … But New Zealand is moving forward by making climate risk disclosure mandatory in the whole financial system.

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More financial companies share their information to fight cybercrime https://savewesternoh.org/more-financial-companies-share-their-information-to-fight-cybercrime/ Mon, 27 Sep 2021 07:00:00 +0000 https://savewesternoh.org/more-financial-companies-share-their-information-to-fight-cybercrime/ [ad_1] The growing threat of cybercrime has prompted financial companies to increase intelligence sharing by 60%, new research finds. According to the cyber-espionage group of the cyber intelligence services FS-ISAC, the growth was observed among its member firms between August 2020 and August 2021. The increase occurred in all regions, including North America, Europe and […]]]>


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The growing threat of cybercrime has prompted financial companies to increase intelligence sharing by 60%, new research finds.

According to the cyber-espionage group of the cyber intelligence services FS-ISAC, the growth was observed among its member firms between August 2020 and August 2021. The increase occurred in all regions, including North America, Europe and the United Kingdom.

The company claimed the increase was due to supply chain and ransomware threats, as well as several large-scale and high-profile attacks.

“With the increase in sophisticated cross-border cybercrime campaigns against the financial industry and its supply chain, global industry-wide collaboration has become a risk management imperative,” said Steven Silberstein, CEO of FS-ISAC .

“The sharing of information and best practices within our community and across our platforms has reached new heights, driven by the high profile events of the past 12 months. We applaud those members who go above and beyond to protect the financial system as a whole. “

In addition to helping detect and prevent cyberattacks, FS-ISAC noted that sharing by large market-based financial institutions with stricter and more comprehensive regulation helps strengthen the cybersecurity programs of smaller companies. or less endowed with resources from around the world, for the benefit of the entire financial ecosystem.

“American Express is deeply interconnected with other players in the global financial system,” said Fred Gibbins, chief information security officer at American Express.

“We believe it is our core responsibility to share information and best practices with our peers to help the industry protect and defend against emerging cyber threats. “


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The threat posed by cyber attacks has increased dramatically in recent years. A report warned that there had been a 485% overvoltage in ransomware attacks in 2020. And another said the UK has been hit by 14.6 million ransomware attacks so far this year.

The cybercrime industry has also matured, with knowledgeable and skilled players using proven tools. They are increasingly targeting large organizations looking for big salaries, putting financial institutions in the crosshairs.

All of this means that cybersecurity is a growing concern for financial services. The average bill for a victim of a ransomware attack in the financial industry is now around $ 2 million. This is in addition to the reputational damage caused by data exfiltration.

With companies awarding greater resources To fight cybercrime, intelligence coordination makes it possible to defend effectively against cybercrime, while reducing costs.

“Meaningful threat intelligence gives our security team at IAG an edge over attackers and reduces cyber risk,” said Threat Analytic Cell Manager at IAG Craig Hall.

“Recently we were able to identify a threat actor who methodically attacked Australian financial institutions in alphabetical order throughout the day.

“By sharing the criminal’s tactics, members across the region knew when they were likely to be hit and were therefore able to defend themselves against attack. “


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Best jobs for masters in finance https://savewesternoh.org/best-jobs-for-masters-in-finance/ https://savewesternoh.org/best-jobs-for-masters-in-finance/#respond Tue, 21 Sep 2021 07:00:00 +0000 https://savewesternoh.org/best-jobs-for-masters-in-finance/ [ad_1] Enrolling in a Master of Finance can have a huge impact on your career. Half of global employers said they plan to hire MiF graduates in 2021, according to the latest Graduate Management Admission Council Survey of corporate recruiters. Master of Finance jobs available to graduates range from some of the highest paying finance […]]]>


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Enrolling in a Master of Finance can have a huge impact on your career. Half of global employers said they plan to hire MiF graduates in 2021, according to the latest Graduate Management Admission Council Survey of corporate recruiters.

Master of Finance jobs available to graduates range from some of the highest paying finance jobs to roles in a variety of industries, including popular sectors like consulting and technology.

So what are the best jobs for masters in finance and what companies will you hire after you graduate?


1. Investment banker

In investment banking, you are responsible for buying and selling different financial assets. If you can imagine yourself working at one of the best investment banks on Wall Street, then a Masters in Finance is a good place to start.

Investment banks regularly hire a large part of the MiF classes. At Tsinghua University’s School of Economics and Management, for example, 29% of MiF students work in investment banking. Since the average salaries of investment bankers in New York are $ 117,000, this is hardly surprising.

Investment banks like Goldman Sachs and JP Morgan consistently rank among the top employers of Masters in Finance graduates. In MIT Sloan’s most recent Masters of Finance cohort, 10 graduates got jobs at Goldman Sachs, while seven went to work at Bank of America.



Ferdinand Petra, of the Master of Finance at HEC Paris, believes that an MiF prepares candidates well for a career in investment banking. Not only do they get the in-depth expertise required by finance, but the program also gives a good feel for the work culture.

“It’s very multicultural, and that’s what you’ll get in investment banking. There is a lot to learn by practicing and making cases in multicultural teams, ”says Ferdinand.


2. Advisor

Consulting is a popular career choice for all business school graduates and it is no different for finance graduates because consulting is one of the best Master in Finance jobs. At Imperial College Business School, 20% of the most recent MiF class joined consulting firms.

These include companies like the Big Three at McKinsey, Bain, and the Boston Consulting Group, who want MiFs from top programs. Masters graduates can expect starting salaries in the board of around $ 90,000, rising to $ 125,000 after signing and performance bonuses.

Keith Bevans, Global Recruitment Manager at Bain, explains why the Big Three consulting firms are drawn to MiF graduates.


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“MiF students add this financial prism: they tend to have built financial models, they can read financial statements and they know the role that financial organizations can play in a business from a strategic point of view. This means that they have more subject matter expertise than other master’s students.


3. Central banker

Many MiF graduates are drawn to public finance roles, including working in global financial institutions or with national government banks.

At London Business School, positions in central banks or public finance are some of the best jobs for a Masters in Finance, with 22% of graduates working in these industries. Employers include the Ministries of Finance of Japan and Singapore, the European Bank for Reconstruction and Development, and the International Finance Corporation (part of the World Bank).

While these jobs are not as well paid as private financial services, they are a great opportunity for global exposure at the diplomatic level. Christian Dummett, Director of Career Services at LBS, believes that a diverse MiF cohort prepares you well for this.

“You will have a broader perspective on the world, because you will have had this huge exposure to various working groups. It’s really important that when you start your job you don’t just think as a 28-year-old finance man, you think as a global businessman, ”says Christian.


Read: 25 Best Masters in Finance Programs | Class

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(c) HEC Paris Facebook


4. Asset manager

While investment banking is on the “sell” side, asset management is on the “buy” side. Asset managers should seek out financial assets in which to invest money on behalf of their clients’ portfolios.

Asset Management is one of the main providers of Master in Finance jobs; At MIT Sloan School of Management, 9% of the most recent MiF cohort held positions in the industry. This includes jobs at companies such as leading investment management firms BlackRock and the Vanguard Group.

Finding and investing in profitable assets requires curiosity and creative thinking which you will learn during a Masters in Finance. “For asset management, you need to be thoughtful, rigorous and tenacious in asking questions that others do not ask,” explains Christian from LBS.

“It helps you discover opportunities that others don’t see. “


5. Seller and trader

High Risk, High Reward – Sales and Commerce offer popular finance masters jobs for ambitious graduates. Organizations like JP Morgan and Goldman Sachs have sales and commerce branches that regularly recruit MiF graduates.

At MIT Sloan, 13% of MiF graduates go into sales and trading; at Imperial, this figure is around 7%. The average starting salaries for Imperial MiF graduates entering sales and commerce are just over $ 67,000.

There is no doubt that sales and trading are one of the most difficult, pressured, and time consuming areas of finance. To engage in this industry, graduates need to know what they are getting into.


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The Master in Finance from ESSEC Business School offers a specialized course dedicated to financial markets, sales and trading; giving students not only the required specialist knowledge, but also a chance to gain work experience in the sector.

Sridhar Arcot, from MiF at ESSEC, explains that companies look for this kind of knowledge and experience when hiring because it means that recruits know what they are getting into, as well as what expects from them. “They want employees who can get started. “

Master in Finance jobs are many and varied, whether you are looking for global exposure, high salaries, or even a role in the public sector, there is something for you.


This article was updated on September 21, 2021.


Read more :

Is a Master in Finance worth it?

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Key Corporate Governance Compliance Requirements for Financial Companies in Nigeria – Corporate / Commercial Law https://savewesternoh.org/key-corporate-governance-compliance-requirements-for-financial-companies-in-nigeria-corporate-commercial-law/ https://savewesternoh.org/key-corporate-governance-compliance-requirements-for-financial-companies-in-nigeria-corporate-commercial-law/#respond Mon, 23 Aug 2021 07:00:00 +0000 https://savewesternoh.org/key-corporate-governance-compliance-requirements-for-financial-companies-in-nigeria-corporate-commercial-law/ [ad_1] To print this article, simply register or connect to Mondaq.com. In this article, we have discussed the main Code compliance requirements and how CFs in Nigeria can put in place appropriate systems to ensure compliance. Based on company law, every Nigerian company is required to establish a board of directors (“the board”). Financial companies […]]]>


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To print this article, simply register or connect to Mondaq.com.

In this article, we have discussed the main Code compliance requirements and how CFs in Nigeria can put in place appropriate systems to ensure compliance.

Based on company law, every Nigerian company is required to establish a board of directors (“the board”). Financial companies (‘FC’) are not exempt. The board is generally responsible for ensuring that the objectives of the company are achieved by collectively directing the activities of the company, keeping in mind the interests of shareholders and other relevant stakeholders. The Central Bank of Nigeria (CBN) is one of the relevant stakeholders.

In general, the CF are required to comply with the provisions of the Code on Corporate Governance for Financial Companies in Nigeria 2018 (“the Code”) issued by the CBN.

What is a finance company?

The Financial Corporation is a sub-sector of Banks and other financial institutions and operates within the middle level of the economy’s financial services system, with particular emphasis on micro, small and medium enterprises (MSMEs). According to the Revised CBN Guidelines for Finance Companies in Nigeria, 2014, “a finance company refers to a company licensed and licensed to carry on business of providing financial services to individual consumers and industrial, commercial or business enterprises. agricultural. It plays a complementary role to the banks, by filling the financing gaps and by meeting the financial needs of its target customers “.

The CF may engage in the following activities, among others:

  • Consumer loans
  • Fund management
  • Asset finance (for example, finance lease and hire purchase)
  • Project funding
  • Financing of local and international trade
  • Debt factoring
  • Financial advice

Corporate governance compliance requirements

As part of the CBN’s initiatives to establish financial stability and transparency in the financial corporations sub-sector, the CBN published the Code. Compliance with the Code is not optional for the CF. Below are some of the main Code compliance requirements:

Succession plan

The board should ensure that a succession plan is in place for the CEO / CEO (“MD / CEO”), executive directors and other senior management staff.

Approval threshold for financial transactions

The Board must set approval thresholds for each financial transaction and include these thresholds in its Standard Operations Manual (SOP).

Board composition and size

The board of directors of any FC must have a minimum of five (5) and a maximum of nine (9) directors at any given time, with at least fifty-one percent of the board members being non-directors. executives (“NED”). . It is also compulsory for each CF to have at least one (1) Independent Non-Executive Director (‘INED’) within its Board of Directors.

Separation of powers

A separate person will serve as Chairman of the Board of Directors and Managing Director / Managing Director. These two positions cannot be assigned to one person. It is also important to note that no member of the same family can occupy these two (2) positions.

Appointment of directors

Each appointment of directors must be approved by the CBN. The CF are encouraged to first seek CBN approval after shareholder resolution before filing statements with the Corporate Affairs Commission (‘the CAC’).

Mandate of directors

NEDs serve on the Board for a maximum period of three (3) terms of four (4) years each. INEDs will have a maximum of two (2) terms of four (4) years each. While the MD / CEO will have a maximum period of ten (10) years without a specific minimum mandate. The MD / CEO of an FC will only be eligible for renewal in the same company or its subsidiaries after three (3) years after the expiration of his mandate as MD / CEO. It should be noted that for a Board member to be eligible for re-election, he or she must attend at least two-thirds of all Board meetings and of the Board Committees to which they belong each fiscal year.

Board committees

It is mandatory for the board of directors of any FC in Nigeria to establish the following board committees: risk management committee, audit committee, governance and nominations committee and credit committee of the board of directors. ‘administration. Each of these committees will have a charter approved by the CBN.

Disclosure of Board of Directors Meetings

The board of directors of any CF must disclose in the annual report the total number of board members and board committee meetings held during the year and the attendance of each member.

Remuneration policy

Each CF must establish a remuneration policy and disclose it in the annual report to shareholders.

Disclosure of shares held by directors

Each CF must disclose the number of shares held by each director and its related parties in its annual report.

Annual assessment of the board of directors

Each CF will formally assess its Board and Directors each financial year. This evaluation must be carried out by an independent consultant whose report will be presented to the shareholders at the annual general meeting. A copy of the annual board assessment should also be sent to CBN by the consultant no later than March 31 of each fiscal year.

Final remark

Although the Companies and Allied Matters Act 2020 generally requires every business, which is not a small business, to have at least two (2) directors, the Code contains specific provisions for FC. The Code further increased the size of the board of directors for each CF to a minimum of five (5) and a maximum of nine (9) directors, with at least fifty-one percent of the members of the board being of NEDs. Compliance with the requirements of the Code is mandatory for each FC, and this is strictly monitored by the CBN.

Therefore, each CF in Nigeria should regularly conduct a corporate governance audit to ensure compliance with the Code and to avoid possible regulatory sanctions. CFs should consider creating a compliance unit within the company whose functions would include, among other things, monitoring compliance with the Code and other regulatory requirements.

We are more than happy to work with the CF interested in setting up or improving their existing corporate governance system.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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RBI to Clarify New Auditor Appointment Standards Soon, Real Estate News, ET RealEstate https://savewesternoh.org/rbi-to-clarify-new-auditor-appointment-standards-soon-real-estate-news-et-realestate/ https://savewesternoh.org/rbi-to-clarify-new-auditor-appointment-standards-soon-real-estate-news-et-realestate/#respond Fri, 04 Jun 2021 07:00:00 +0000 https://savewesternoh.org/rbi-to-clarify-new-auditor-appointment-standards-soon-real-estate-news-et-realestate/ [ad_1] MUMBAI: Amid mounting criticism of its recent circular on the appointment of auditors by large financial institutions, the Reserve Bank said on Friday that it would issue a series of clarifications shortly that various stakeholders have requested. While industry body CII has spoken out against new standards that require a joint audit and also […]]]>


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MUMBAI: Amid mounting criticism of its recent circular on the appointment of auditors by large financial institutions, the Reserve Bank said on Friday that it would issue a series of clarifications shortly that various stakeholders have requested.

While industry body CII has spoken out against new standards that require a joint audit and also limit the term to three years among many other restrictions placed on large players, national auditors and independent observers have welcomed the same. by stating that the new circular issued on April 26 will go a long way to level the playing field for all by reducing the brutal domination of the few.

“We have received representations from various stakeholders requesting clarification, which are under consideration and we will publish those clarifications shortly,” RBI Deputy Governor MK Jain told reporters during the press post. – usual policy.

Without revealing what the main concerns raised in these clarifications are, the central bank hinted that they were only clarifications.

“But the broader objectives of these regulations are to put in place neutral ownership regulations, guaranteeing auditor independence, avoiding conflicts of interest and improving audit quality.

“These measures should also be viewed as part of the RBI’s efforts to strengthen the functions of entities under its regulations,” Jain said, implying that there is no rethinking of the announced restrictions.

The new standards put large non-banks and housing finance companies, as well as urban cooperatives, within its jurisdiction when it comes to appointing auditors and the new standards will take effect from this fiscal year. However, no deposit NBFCs with an asset size of less than Rs 1,000 crore can continue with their existing procedure.

The guidelines provide the necessary instructions for the appointment of statutory central auditors (SCA) / statutory auditors (AS), the number of auditors, their eligibility criteria, tenure and rotation, etc., while ensuring independence. auditors, said the Reserve Bank.

Banks and UCBs will be required to obtain prior approval from the RBI to appoint / rename SCA / SA on an annual basis, as per the guidelines, adding that for entities with an asset size of Rs 15,000 crore, the audit should be carried out under a joint audit of at least two audit firms. All other entities must appoint at least one audit firm to perform the statutory audit.

“We must ensure that the co-auditors of the entity do not have common partners and that they do not report to the same network of audit firms. In addition, the entity can finalize the distribution of work between the SCA / SA, before the start of the statutory audit. , in consultation with their SCA / SA, “he said.

The guidelines further specify that to protect the independence of auditors / audit firms, entities will be required to appoint SCAs / SAs for a rolling period of three years, subject to the firms meeting eligibility standards each year.

After CII publicly called on the RBI to review the standards, the local audit body ICAI publicly supported the policy saying the new standards would help improve audit quality, transparency and added value.

Many independent auditors have also questioned fears that joint auditing will increase costs and also suspect the ability of national audit firms to audit large companies as nonsense.

It is reported that no less than 645 audit firms today meet the eligibility criteria for appointment as statutory central auditors of PSBs as established by the CAG, but none can do so under the current standards, but under the current regime none of them work for them.

Some independent auditors are also of the opinion that concerns such as escalating costs in terms of meeting the new standards challenge the quality of small businesses without giving them a chance.

“If the audit is seen as a cost, then the best way forward is not to go for an audit,” Ved Jain, former chairman of the Institute of Chartered Accountants, said earlier this week. (ICAI).

“Regulatory compliance is part of the business and a good audit adds value to the business and the process generates value and not a waste of resources,” he added and stressed that a good audit mitigates risk and said those who suspect the quality and capacity of smaller local audit firms should remember Saytam Computers, IL&FS, DHFL, Yes Bank and many other scams in our own backyard and Enron and the Lehmans of the Western World.

Amarjit Chopra, a former president of ICAI, said that if there was a cost increase of, say, 10-15% due to the use of co-auditors, it would be neutralized over time. After all, he said, an audited entity can ask the co-auditors to split both the work and the fees, which will make the auditor more competitive.

“Anyone who says joint auditing doesn’t work is a myth and joint auditing will only add nonsense to the cost. You see, SBI has 14 co-auditors, they pay 14 times more than those with an auditor , and BoI, UBI and PNB each employ four to five auditors, so the higher cost is a myth and a joke, ”Chopra said.

ICAI President Nihar N Jambusaria said on May 26 that the new standards would improve “auditor independence and strengthen corporate governance,” and observed that currently only 10 percent of consulting firms The eligible auditors are appointed as statutory central auditors and with the standards relaxed, the number of eligible companies is expected to triple.

Renowned accountant and chairman of Mumbai-based Shailesh Haribhakti Associates, Shailesh Haribhakti said the measures taken by RBI will bring more transparency by avoiding collusion between auditees and auditors.

“It will also help bring out truthful and fair reporting on the financial health and performance of auditees, in addition to effectively opening the door for national audit firms to have a level playing field with respect to their global peers, ”he said.

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NBFC and housing finance companies: riding the technology wave https://savewesternoh.org/nbfc-and-housing-finance-companies-riding-the-technology-wave/ https://savewesternoh.org/nbfc-and-housing-finance-companies-riding-the-technology-wave/#respond Thu, 27 May 2021 07:00:00 +0000 https://savewesternoh.org/nbfc-and-housing-finance-companies-riding-the-technology-wave/ [ad_1] Listen to this article 2020 has been an extremely difficult year for the financial services industry, especially given the global economic slowdown, coupled with stressed borrowers and a shortage of liquidity in the market. The situation, however, presented a unique opportunity for non-bank financial corporations (NBFCs) and housing finance companies (HFCs). As central banks […]]]>


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2020 has been an extremely difficult year for the financial services industry, especially given the global economic slowdown, coupled with stressed borrowers and a shortage of liquidity in the market. The situation, however, presented a unique opportunity for non-bank financial corporations (NBFCs) and housing finance companies (HFCs). As central banks around the world work to neutralize the economic impact of the pandemic through new regulations and loan subsidies, the need for nimble, non-traditional financial institutions grows.

NBFC and HFCs are the answer, with their digitally driven approach to providing flexible financing, delivering new products in a timely manner, and reaching a wider range of banking customers. In fact, recent research has suggested that NBFCs are expected to increase their assets by 7-9% in 2022, while HFCs are expected to increase by 10% over the same period.

The evolution of NBFCs and HFCs

NBFCs have generally focused on traditionally underserved or unserved market sectors, be they individuals or businesses. However, they seem to be increasingly shifting their energies towards developing innovative products, building strategic partnerships with fintechs, and catering to low-income clients clustered in unorganized sectors, while minimizing operational and cost costs. customer acquisition.

In order to carry out these initiatives, NBFCs and HFCs are investing in modernized business models, powered by a variety of new era technologies, to enable the seamless design, launch and implementation of unique products and services and personalized.

In an effort to cater to a wider range of customers, NBFCs and HFCs plan to digitally transform their end-to-end processes, differentiating themselves from incumbent banks and delivering a superior experience.

How emerging technologies are transforming NBFCs and HFCs

By implementing a wide range of modern technologies including artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), mobility, predictive analytics, chatbots and blockchain, NBFCs and HFCs are completely redefining the way they deal with internal and external customers.

By accelerating their digitization efforts, NBFCs and HFCs can enable:

  • Remote customer interactions, via KYC video and eSignatures
  • Anytime, anywhere accessibility with mobile apps and self-service portals
  • Contextual, personalized and omnichannel engagement with customers
  • Streamlined operational workflows for increased productivity, accuracy and profitability
  • Alternative credit scoring models to give non-traditional clients financial freedom
  • Increased data security, using distributed ledger technologies
  • · And much more!

However, many NBFCs and HFCs currently lack the necessary infrastructure to effectively modernize their operations and take advantage of these new era technologies.

How can NBFCs and HFCs gain a competitive advantage?

The Need of the Hour is a robust platform-based solution that can enable NBFCs and HFCs to implement the right mix of technologies, backed by an agile IT framework.

Such a solution should be able to support:

  • Instant loan disbursement via open API banking
  • Loan disbursement on mobile or portal
  • AI-based credit scoring
  • Online services on low-end mobile phones
  • · Many languages
  • Real-time access to relevant information, to facilitate rapid processing by backend teams
  • Collaboration and reporting by several agents, simultaneously
  • The unique needs of NBFCs and HFCs

NBFCs and HFCs have the potential to gain a significant advantage over their traditional banking counterparts by rapidly adopting new era technologies. A platform-based solution can help them optimize their resources and processes, expand their customer base to reach a wider socio-economic audience, leverage strategic partnerships and increase their revenue, all while remaining risk-free. , compliant and competitive.

The views expressed in this article are the personal opinion of Jayant Tandon, Head of Banking Excellence at Newgen Software.

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