CIBN, valuers, bank sue for collaboration, ethics
Despite technological advancements, national and global economies are yet to fully realise the impact of multi-disciplinary and cross-professional approaches in tackling socio-economic challenges.
But collaborations among various professional groups have emerged trends in global economies, a situation that has helped in mobilising surplus requirements from a unit, with a view to applying them to critical and productive sectors in another unit.
The President of Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, who made the observations at a workshop organized by his institute in collaboration with the Nigerian Institution of Estate Surveyors and Valuers, said it is pleasing that both bodies are exploring opportunities to foster economic growth.
According to him, the event with the theme: “Financial Institutions and Estate Valuers: The Nexus”, is a testament to the collaboration and central role of banking and finance and estate surveyors and valuers professionals in economic growth and development.
Quoting Don Tapscott, he said: “Collaboration is important not just because it is a better way to learn. The spirit of collaboration is penetrating every institution and all of our lives. So learning to collaborate is part of equipping yourself for effectiveness, problem solving, innovation and life-long learning in an ever-changing networked economy.
“Banks and other financial institutions are vital in any society as they significantly contribute to the development of an economy through funding of bankable projects and facilitation of business ideals.
“To achieve their mandate, banks and other financial institutions rely, in their decision making processes, on the services and expertise of other professionals. It is safe to presume that the two most important sectors that aid financial institutions’ profitable and efficient discharge of their duties are the Real Estate and the Information and Communication Technology (ICT) sectors,” he said.
He explained that the complementary role of estate valuers in the activities of financial institutions, became more fundamental with the current lacklustre economic experience causing an unprecedented increase in the rate of Non-Performing Loans (NPLs) and the need for a tighter securitisation of loans.
Director, Bank Examination Department, Nigeria Deposit Insurance Corporation, A. A. Adeleke, who corroborated CIBN chief, said the quality of estate surveying and valuation services available in a country has a lot of implications for real estate development, as a key index of national economic growth and development.
Speaking on “Assets Valuation, Collateral Management and Risk Mitigation” as well as “Ethics and Professionalism: Key to an Enduring Relationship” he said there is for the two professional bodies to ensure that their members appreciate the interdependence and mutually reinforcing dimensions of their respective services.
Bolaji Durojaiye of Access Bank, while speaking on Asset Valuation, Collateral Management and Risk Mitigation, noted that asset valuation involved maintaining records of the valuation process and ensures that the collateral is regularly insured, reappraised and monitored against the credit exposure.
Noting that collaboration is imperative, he pointed out that IAS Standards requires all entities to determine the fair value of investment property, for the purpose of either measurement or disclosure.