MSNM International Series on Why do banks fail? By Dr. Mohammad Belgami

On 23rd July 2025, Manel Srinivas Nayak Institute of Management (MSNIM) hosted an enlightening session under its International Guest Talk Series at Swarna Hall. The event featured Dr Mohammad Begami, Director Risk Advisory & Compliance at Corporate Finance International, Bahrain.

Drawing from his vast global expertise, Dr Begami delivered a compelling presentation on “Why Do Banks Fail?”, seamlessly merging academic insight with real-world case studies. He explored the interplay between risk management lapses, governance failures, and regulatory shortcomings, referencing landmark events such as the Lehman Brothers collapse and the 2008 financial crisis. Through these examples, he illustrated how factors like inadequate capital buffers, high non-performing assets, and excessive risk-taking create vulnerabilities within banking institutions.

Further, Dr Begami highlighted the impact of weak compliance frameworks and opaque corporate structures in exacerbating financial crises. He contextualized these insights for current banking environments in the Middle East and South Asia, emphasising the importance of transparent reporting, board-level oversight, and evolving international standards such as Basel III and IV.

The session saw enthusiastic participation from students and faculty during an interactive Q&A segment. Discussions covered areas such as stress testing, behavioral ethics in finance, and the influence of digital disruption on risk management.

In closing, the Director of MSNIM presented Dr Begami with a memento of appreciation, acknowledging his valuable contribution. The talk proved both illuminating and thought-provoking, equipping participants with a nuanced understanding of systemic banking vulnerabilities and reinforcing their commitment to resilient, ethical banking practices.