CBN Develops Framework On Non-Interest Banking

The Central Bank of Nigeria (CBN) is to develop a regulatory and supervisory framework on non-interest banking, the CBN Governor, Malam Lamido Sanusi Lamido, has said.

The apex bank said in a statement on Friday, in Lagos that Lamido made the announcement during a visit to the Central Bank of  Sudan (CBOS) recently.

It stated that the visit was part of Lamido’s activities during the 16th meeting of the Council of Islamic Financial Services Board (IFSB) in Khartoum.

The bank said the CBN governor called for the support and cooperation of CBOS in achieving the objective.

It quoted Dr Ahmad Ali Abdullah, Advisor to the CBOS Governor on Non-interest Banking, as assuring the CBN of the Sudanese apex bank’s readiness to support Nigeria in the implementation of non-interest banking.

The support, he promised, would be through experience sharing and capacity building.

According to the statement, non-interest banking is provided for in Sections 9, 23 and 52 of the Banks and Other Financial Institutions Act 1991, as amended.

It said the 16th meeting would be the second to be attended by Nigeria since the CBN became a full member of the Council in January 2009.

The IFSB is an international standard setting body for the Islamic financial services industry with membership comprising regulatory and supervisory agencies across the world, according to the statement.

Its membership also includes the World Bank, the International Monetary Fund, Islamic Development Bank and the Bank for International Settlement.