actiondrilling:
The Chartered Institute of Bankers of Nigeria (CIBN) says the President Muhammadu Buhari-led administration’s commitment to ensuring proper banking regulation has assisted in helping the country out of recession.

The President of the institute, Dr Uche Olowu, gave the commendation in an interview with the News Agency of Nigeria (NAN) in Lagos on Monday, while speaking on the sideline of a “Special Luncheon” held in his honour by the management of Caleb University, Imota, Lagos State.

“Shortly (after) he (Buhari) was sworn-in, the economy went into recession.

“That was occasioned by the fall in government revenue occasioned by fall in oil prices and that had a toll on the banking system because what it meant was that there was the scarcity of the dollar as the exchange rate went to the roof.

“But with the alignment of fiscal and monetary policies, we came out of recession.

“That’s a big plus because never have we had a situation where you saw that kind of synergist alignment between fiscal and monetary policies.

“So to that extent, you’ll have to give kudos to them.

“There are lots of reforms that the CBN governor has been doing carrying out.

“The agricultural revolution, the intervention by the apex bank means quite a lot to the economy because it was in furtherance of the government policy of food security.

“So he intervened a great deal in making sure that the right revolution worked..

“And so, that to a great extent, it has also improved the economy.


“And of course, a successful economy means that the financial sector would be deepened.

“So to that extent, you also will agree that yes, the banking system is better off with the kind of reform (that was carried out).

“We must give kudos to the government for handling the situation well, although there is still room for improvement.’’

Olowu, however, identified some areas in need of adjustment.

“I think the banks are well regulated. There are some policies that negate the efficient management of the banking system.

“Take for example, the sovereign risks that the banks took, take away liquidity from the system.

“So, the governments should respect their own obligations because it sends out a signal to investors that if your sovereign risks that bank took were not respected because the banks are so pivotal to sustainable economic growth.

“Everything that would be done to making sure that the banks are properly regulated, policies are sustainable, because banks do not strive on uncertainty.

“There are too many policy summersaults; that should be stopped and then we should also encourage the issues of building human capital that would make for the virile banking system.

“We also will encourage a situation where the government will align physical and monetary policies basically and then regulation and compliance issues are taken seriously.

“That heavy punishment, fines should be meted to any person so that it should serve as a deterrent to whoever that would want to compromise the system.’’

http://www.akelicious.net/2018/06/cibn-scores-president-buhari-high-on.html