Business
Bank Reform: CBN To Overhaul Corporate Governance Soon
A complete overhaul of corporate governance and risk-base consolidated supervision of banks will form the fulcrum of the second phase of banking sector reforms coming up in the first quarter of 2010, the Central Bank of Nigeria (CBN) has said.
But a major player in the industry thinks otherwise, saying one-size-fits-all approach to corporate governance will continue to lead us to sub-optimal outcomes.
Kingsley Moghalu, deputy governor, Financial Sector Surveillance, Central Bank of Nigeria (CBN), revealed that by the first quarter of 2010, the new harmonised and comprehensive corporate governance code will be issued by the apex bank, adding that it will also ensure compliance by enforcing it.
Also, CBN said the reform in the banking sector will focus on disclosure and international financial reporting standards as well as consumer protection.
The proposed harmonised corporate governance code which the Financial Sector Regulatory Consultive Committee (FSRCC) is working on not just the individual codes issued by Nigerian Deposit Insurance Corporation (NDIC), pension commission (PENCOM) and the CBN.
Moghalu, who spoke in Lagos at a public lecture with the theme, ‘The Financial Crisis, Banking Regulation and Payment System in Sub-Saharan Africa,’ organised by London School of Economics Alumni Association of Nigeria, noted that the banking sector watchdog is putting in place, a risk based supervision framework which will focus on proactive examination of banks, proactive management of risks, examining banks from the perspective of risks analysis and risks management.
Also at the lecture, Atedo Peterside, chairman, Stanbic IBTC Bank, faulted the proposed harmonised corporate governance, noting that ‘our regulator imposed corporate governance codes and arrangement but do not take cognisance of vastly deferring ownership/management dynamics, nor are they adjusted or fine-tuned for the unique set of risks facing each institution”.
In another development, Moghalu revealed that CBN will soon commence a comprehensive training programme for every examiner of the CBN, whereby after completion, every supervisory staff member of the CBN becomes a risk management expert, with the skills to be able to apply the risks based supervisory framework to examining banks operating in Nigeria.
According to CBN, the second phase of the reforms will also include the creation of the Assets Management Company (SMC) which Moghalu described as very important for the resolution of the banking crisis because “the AMC will buy toxic assets off the rooms of these banks and we believe that, that will generate confidence.”
Business
NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content

Business
Industry Leaders Defend Local Content, … Rally Behind NCDMB

Business
Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP

-
News17 hours ago
NOA Set To Unveil National Values Charter — D-G
-
Politics13 hours ago
2027: Group Vows To Prevail On Diri To Dump PDP For APC
-
Features16 hours ago
25 Years After: NDDC Celebrates Milestones Of Impactful Development
-
Business18 hours ago
NCDMB Promises Oil Industry Synergy With Safety Boots Firm
-
News14 hours ago
Rivers Police Arrest Notorious Cultist, Recover Sophisticated Ammunition
-
Niger Delta17 hours ago
Adopt African System Against Crime, Don Urges Security Agencies
-
News12 hours ago
Ibas Inaugurates RSIEC, Service Commissions, Healthcare Board In Rivers …Charges Appointees To Embrace Principles Of Service
-
Rivers16 hours ago
Monarch Cautions Youths Against Illicit Drug Consumption