The adoption of zero tolerance in regulatory framework, infractions and strict enforcement of corporate governance principles and other reforms in the banking sector have helped to stabilise the sector, Central Bank of Nigeria (CBN) Governor, Godwin Emefiele has said.
He spoke at the 2018 Financial Markets Conference organized by the Financial Market Dealers Association of Nigeria (FMDA) in Lagos.
Emefiele, who was represented by CBN Executive, Mrs. Olatoun Akinola, said expeditious process for rendition of returns by banks and other financial institutions through e-FASS application software, revision and updating of relevant laws for effective corporate governance and ensuring greater transparency and accountability in the implementation of banking laws and regulation have also boosted confidence in the sector.
He explained that some key developments that contributed to the strengthening of the financial market to moderate illiquidity after the global financial crisis include the establishment of a resolution vehicle (Asset Management Corporation of Nigeria) in 2010, to soak the toxic assets of Deposit Money Banks (DMBs).
Also, let me mention the “Alpha Project Initiative” which brought about the “new banking model” structure that replaced the hitherto one-size-fits-all model of banking. This new model resulted in the establishment of international banks, national banks, regional banks and specialized banks.
He said that Nigerian banks are now ranked amongst key players in the global financial landscape with some of them featuring amongst the First 20 banks in Africa and among Top 1000 banks globally.
“I want to say that the Nigerian capital market is not left out in terms of reforms to enhance market performance. Take for instance, since the aftermath of the effect of the global financial crisis on the capital market, the apex regulator in the capital market has stepped-up its surveillance activities and initiated different programmes”.
“The 10-year capital market master plan initiated by the Securities and Exchange Commission (SEC) is the current overarching capital market development and reform plan covering the overall capital market, non-interest financial products and capital market literacy. Let me say that, at the end of the implementation of the plan, the Nigerian capital market will be Africa’s most modern, efficient and internationally competitive capital market that will catalyze Nigeria’s emergence as one of the top 20 global economies”.
The opening remarks at the event will be delivered by the FMDA President, Samuel Ocheho, who said the group will continue to play major role in promoting economic growth.
The theme of the conference is: “The Nigerian Financial Market – A Catalyst for Sustainable Economic-Growth”. The Conference sub-themes are: The Role of the Financial Markets In Unlocking Capital Flows to the Real Sector – Spotlight on SMEs and Agriculture Sector and Balancing Monetary Policy, Portfolio Investment, Foreign Direct Investments and FX Targeting with Mr. Tony Elumelu and Mr. Amine Mati as Lead Speakers respectively.