Soludo insists on more banking reforms
By Sulaimon Salau
MORE reforms aimed at stabilising the banking sector are being considered by the Central Bank of Nigeria (CBN), according to its governor, Prof. Charles Soludo.
CBN's recent policy, which required each bank to raise its capital base to N25 billion has already engendered a regime of mergers and acquisition in the sector.
During the yearly dinner of the Chartered Institute of Bankers of Nigeria (CIBN) at the weekend, the CBN governor stated that the policy on the new capital base was a pre-emptive measure to prevent an imminent crisis in the banking sector.
He said that the restructuring of the sector would enable it to enthrone professionalism in all facets of bankiing operations.
Soludo cited part of the reforms as the acquisition of the Nigerian Security Printing and Minting Plc (NSPM) by the CBN with a view to restructuring the minting company and taking it to a world class.
"Our goal is to stop importing finished banknotes and for the mint to become "the Mint" for West and Central Africa," he said.
He deplored the rough handling of the naira notes, stressing that the CBN was committed to designing and implementing an effective "clean notes policy" to ensure cleaner naira notes in circulation.
He stated that the planned introduction of the N1000 note would soon be actualised.
The apex bank's chief acknowledged bankers' support for the N25 billion capital base, saying "no less than seven groups of banks, with combined capital base ranging between N9.6 and N40.9 billion have signed a Memorandum of Understanding (MOU) to merge. There is evidence that many other groups are in the process of signing the MOU."
He continued: "I remain confident that the December 2005 deadline for bank consolidation will be met, and I am convinced that we have ample time to finish the consolidation exercise."
The president/chairman of CIBN, Mr. Samuel Ereola Kolawole stated that the reforms were meant to correct defects and make the banking system sound to engender depositors' confidence.
According to Kolawole, the policy will also generate the needed international capital for Nigeria's development.
He added that the institute welcomed the reforms and the progress so far made. "We are pleased to note that mergers and acquisitions, contrary to general expectations are gaining wide acceptance in the industry," he said.
He urged CBN to ensure that the guidelines released in respect of the reforms should be tenaciously implemented to achieve the desired result.
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