New capital base will strengthen banks, says Soludo
From Charles Coffie Gyamfi, Abeokuta
AS the new N25 billion capital base for banks continues to attract both criticism and approval, the Central Bank of Nigeria (CBN) has hinged the necessity for the policy on its potential to strengthen the banking sector.
The apex bank Governor, Prof. Charles Soludo acknowledged that some stakeholders in the banking sector had not been enthusiastic about the new policy. But he insisted that it would not be amended as it was meant to infuse confidence and stability into the sector.
Soludo spoke in Abeokuta, the Ogun State capital at the weekend, during an award ceremony to honour the Abeokuta branch of the CBN for wining last year's best branch award.
He also disclosed that the bank had introduced a new settlement system that had reduced the local clearing cycle time from four to three days.
Soludo stated that the system, which had already taken off in Lagos, would soon be extended to Abuja and all the clearing centres in the country.
He revealed that to ensure a reliable banking structure for the 21st century, he would introduce 12 reforms in the sector.
He named one of the reforms as the N25 billion capital base recently prescribed for banks.
He said: "A new system, which has seven banks designated as settlement banks was designed to enhanced efficiency in the payments system as well as bring security to the Nigerian financial system."
The seven settlement banks, according to the CBN governor, now undertake the clearing of financial instruments on behalf of the 68 banks known as non-settlement banks.
"Consequently, the impact of these reforms will be further enhanced when they are eventually integrated into the technological solutions being implemented by the bank, thereby making the national payments system more efficent and responsive to the needs of the economy," he said.
As a way of supporting the new system as well as sustaining the re-engineering process, he said, the management of CBN had embarked on rigorous training programme for all users of the applications and continuous retraining of staff in general.
He said: "this will ensure the proper discharge of the enormous responsibility entrusted to us as the apex supervisory authority in the banking and finance industry in Nigeria."
The Abeokuta branch Controller of the CBN, Otunba A.A. Ogunsanya disclosed that the yearly award event was introduced by the apex bank's management to encourage excellence among its various branches in the country.
To him, the competition had re-awakened the zeal of the staff towards realising the bank's vision and mission.
Ogunsanya disclosed that between 1992 and 2003 his branch had won 10 awards.
"Our collective resolve is that the Abeokuta branch shall continue to remain epitome of excellence," he stated.
The branch Director of Operations, Alhaji Garba Ahmed stated that the on-going initiative to re-position the bank would include the deployment of the best technological facilities.
He added that some of the technological solutions introduced would certainly change the landscape and the operating environment.
"These solutions are designed and customised to deliver services promptly to customers and collate transactions centrally regardless of the location," he said.
