Banking Tsunami Disputes, a Regulatory Failure and Ineffective Dispute Resolution Mechanism; An Arbitration Frontier

In every economy, it is commonly accepted that the financial health and stability of its banking sector is a key indicator of that economy's performance. As a result, the volume of banking transactions is bound to rise with increased economic activities. A primary result of these increased economic and banking activities is a similar increase in dispute arising from banking transactions and activities, ranging from retail banking disputes to those arising from specialized products. This article examined a variety of dispute resolution mechanisms with an agenda to ascertain a more efficient scheme for dispute resolution. The article revealed that litigation is not an effective mechanism for resolving disputes in the banking sector, as a result, there is a need for an alternative dispute resolution mechanism that allows for an out of court adjudication. This article established that Arbitration is the solution for efficient resolution of commercial disputes in the banking industry, and as such, there is a need to refer all banking disputes to Arbitration for cheaper, faster, efficient, and party orientated adjudication. An effective and prompt mode of dispute resolution has a high impact on the suitable growth of such economics