Internal compliance important to avoid financial crisis: Mohan

MARAIA VULA
SUVA

A bank executive has highlighted the need for banks to have first class internal compliance of operating principles and disciplines in order to avoid a financial crisis.
This was the message by the ANZ chief executive officer for Fiji and the Pacific, Vishnu Mohan, during a public lecture organised by the Fiji National University Nasinu campus yesterday.
“They should learn to self-police and self-manage and understand that they are dealing with the depositers and shareholders money,” he said.
“They have to prove that they have a moral responsibility to protect that.”
Mr Mohan said banks sometimes fail because they lack internal control discipline and at times are being reckless.
“Sometimes they use pricing as their principals to help marketing. Banks should focus on value proposition and understand the balance between risk and reward,” he said.
“I think students need to understand the global picture sometimes they concentrate on the local market my presentation had a wider spectrum of the global financial world.
“I gave some examples of what happened in 1990’s and 2000 in terms of how some of the world’s best banks failed and the consequences of it.
“They can learn from it so that they can apply it to what is actually needed to help grow Fiji’s economy.”
Mr Mohan generally feels banks here and in Australia and New Zealand are good and well-governed with good internal policies.
FNU College of Business, Hospitality and Tourism dean Professor Ram Karan said: “We want our students to understand what’s happening in the real world.
“I hope students learn and get a lot of knowledge from lectures like this.”
Feedback: maraia.vula@fijisun.com.fj