The Governor of the Central Bank of Nigeria, Godwin Emefiele, has said the adoption of risk-focused and rule-based regulatory framework; zero tolerance in regulatory framework for data/information rendition/reporting and infractions and strict enforcement of corporate governance principles in banking sector have helped to stabilise the sector.
In a statement, he said expeditious process for rendition of returns by banks and other financial institutions through e-FASS application software, revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulation had also boosted confidence in the sector.
He explained that some key developments that contributed to the strengthening of the financial market to moderate illiquidity after the global financial crisis included the establishment of a resolution vehicle (Asset Management Corporation of Nigeria) in 2010, to soak the toxic assets of the Deposit Money Banks.
Emefiele, who was represented by the CBN Executive, Mrs Olatoun Akinola, spoke at the 2018 Financial Markets Conference with the theme “The Nigerian financial market – A catalyst for sustainable economic-growth,” which was organised by the Financial Market Dealers Association of Nigeria in Lagos.
He said, “Let me mention the ‘Alpha Project Initiative’ which brought about the ‘new banking model’ structure that replaced the hitherto one-size-fits-all model of banking. This new model resulted in the establishment of international banks, national banks, regional banks and specialised banks.”
Emefiele said that Nigerian banks were ranked among key players in the global financial landscape with some of them featuring among the first 20 banks in Africa and among top 1,000 banks globally.
He stated, “I want to say that the Nigerian capital market is not left out in terms of reforms to enhance market performance. Take for instance, since the aftermath of the effect of the global financial crisis on the capital market, the apex regulator in the capital market has stepped up its surveillance activities and initiated different programmes.”