The Central Bank of Nigeria (CBN) has said the proposed harmonized code of corporate governance for the nation’s banking industry would help halt the flagrant flouting of rules on the management of depositors’ funds.

According to the CBN, among other measures to be adopted  to forestall another banking crisis is that bank directors will be chosen based on the expertise and professional inclination in effectively running the institutions and not on affluence or their investment profile.

Giving a keynote address at the NTA Public Lecture in Abuja recently, the CBN Governor represented by the deputy governor in- charge of Surveillance, Kingsley Chiedu Moghalu, said the ruin in the banking industry is partly due to the crave by banks to assume global stataus as many were only concerned about spreading their resources across borders without corresponding income to match such initiative.

He added that most of the challenges in the sector were self-inflicted wounds and utter failure of corporate governance thus making it imperative to separate ownership from control.

The CBN boss also said that the banks without addressing fundamental issues at the domestic level went global.

This, according to him, resulted to the great challenge of the “Capacity of operators to run bigger and more complex financial conglomerates, which resulted into increased branch network; more complex transactions, managing subsidiaries and affiliates; cross-border operations; risk management and improving customer services.”

On the post consolidation banking sector, the governor said in a bid to ensure the soundness of the banking sector in the country, CBN had consistently introduced reforms in the system identifying corporate governance, integration issues, pressure to meet shareholders expectations, insolvency resolution among others as other post consolidation challenges.