Lagos - The Central Bank of Nigeria (CBN) said it would name and shame
banks that failed to comply with the country's regulatory policies.
“Any institution that fails to comply with regulatory framework will face sanction, and when you face sanction, one of the things we want to do now is to publicize sanctions being placed on financial institutions. It is not enough to come and tell you (banks) that you have failed in doing so and so and we just ask you to pay fine. When you issue your annual report, you put it in some tiny print somewhere.
That is not enough anymore. We are looking at in the future, how we can publicize the sanctions in newspapers,” CBN's Deputy Governor, Financial System Stability, Dr Kingsley Moghalu, said at the 2013 edition of the Continuous Education Programme for directors of banks and other financial institutions in Lagos.
He said such a strategy was in line with international practice.
“Look at what happened in London, with JP Morgan and all other banks. When they make regulatory mistakes, it is blown all over the place and the regulators make them pay hundreds of millions of dollars in fine. But in this country, what does Banks and Other Financial Institution Act (BOFIA) tells you? Pay N2 million (US12 000)!” Moghalu said.
He also stressed the need for directors of financial institutions to ensure that their chief executives were competent and accountable to the board.
Meanwhile, Moghalu revealed that the CBN was conducting a gap analysis of banking industry competence to ascertain the qualification and experience of those that were currently in leadership positions in the industry.
“Any institution that fails to comply with regulatory framework will face sanction, and when you face sanction, one of the things we want to do now is to publicize sanctions being placed on financial institutions. It is not enough to come and tell you (banks) that you have failed in doing so and so and we just ask you to pay fine. When you issue your annual report, you put it in some tiny print somewhere.
That is not enough anymore. We are looking at in the future, how we can publicize the sanctions in newspapers,” CBN's Deputy Governor, Financial System Stability, Dr Kingsley Moghalu, said at the 2013 edition of the Continuous Education Programme for directors of banks and other financial institutions in Lagos.
He said such a strategy was in line with international practice.
“Look at what happened in London, with JP Morgan and all other banks. When they make regulatory mistakes, it is blown all over the place and the regulators make them pay hundreds of millions of dollars in fine. But in this country, what does Banks and Other Financial Institution Act (BOFIA) tells you? Pay N2 million (US12 000)!” Moghalu said.
He also stressed the need for directors of financial institutions to ensure that their chief executives were competent and accountable to the board.
Meanwhile, Moghalu revealed that the CBN was conducting a gap analysis of banking industry competence to ascertain the qualification and experience of those that were currently in leadership positions in the industry.
No comments:
Post a Comment