The development however, is to avert future crisis in the financial sector of the economy | By Eki Toju
The Central Bank of Nigeria (CBN) has concluded plans to review the framework of operations in the banking sector, regarding financial disclosures as well as risk management.
The development however, is to avert future crisis in the financial sector of the economy.
Kingsley Moghalu, the apex bank Deputy Governor, Financial System Stability, disclosed this at the 2012 Continuous Education Programme for Bank Directors and Other Financial Institutions organised by the Financial Institutions Training Centre (FITC) in Lagos.
According to him, the position of the CBN was to ensure financial stability in the industry, having successfully implemented certain reforms in the banking sector, adding that since 2006 the bank had taken a number of measures and policy like the Code of Corporate Governance for banks, which places high premium on enhanced transparency and disclosures.
?We are at a stage where the Nigerian banks are stable. Our strategic priority in the next three years will be aimed at developing and implementing a strong macro-prudential framework. We are also promoting the protection of consumer rights and financial literacy,? he said.
Moghalu however, revealed that some aspects of the reforms and global development was capable of either impacting negatively or positively on the future of the banking sector, adding that the bank’s introduction and implementation of risk based supervision was aimed at promoting sound risk management in the banks, just as well as the implementation of the New Capital Accord (Basel II) is expected to wind up before the end of 2012.
