LAGOS — CENTRAL Bank of Nigeria (CBN) has cautioned banks to exercise restraint in giving publicity to the signing of Memorandum of Understanding (MoU) in their quest to consolidate. It also says it has commenced moves to blacklist fraudsters on its website.
Director, Banking Supervision Department of the CBN, Mr Ignatius Imala, told newsmen at the end of the 275th session of the meeting of Bankers Committee in Lagos that “signing MoU and announcing, informing CBN, we don’t want to say that banks should not publicise these things. But we have to advise that the banks should know too that if a bank informs the public that it is part of a group and at the end of the day, eventually it leaves that group and goes to another group or it drops out, that is a problem for the bank.
“Therefore, there is need to be cautious in respect of the amount of publicity you give to all these things. Because after the MoU, there are a lot of things still to be done. So, they should look at the real critical issues more than looking at the issues of publicity.”
In the meantime, after assessing the consolidation going on in the banking industry, the Bankers Committee noted with satisfaction that more than 10 groups had served notice of their intention of coming together. In the words of Alhaji Kashim N’Jiddah, Managing Director of Afribank, “the committee noted with satisfaction that more than 10 groups have either signed MoUs or are in the process of doing so, while several others are still discussing.”
The reports quoting President Olusegun Obasanjo that only 12 banks would remain after the on-going banking reforms, were also clarified at the meeting. Imala said the CBN Governor emphatically said at the meeting that he did not know how many banks would remain, and that the only criteria would be those set by the apex bank in consolidation guidelines.
“He didn’t fix a number, he didn’t say that at the end of it we are not going to have more than 12. You know it is difficult for anybody to say that and let’s not misquote the president. I don’t think that’s what he meant. So, at the end of the day, you may have 12, you may have 10, you may have more.
“By the time you find yourself at N25 billion capital base and you still see yourself as a marginal player, you want to move higher. So, when two or three banks that have consolidated feel a little uncomfortable decide to come together again, the number will further reduce. So it won’t be easy for anybody to say this is where we are going to stand,” Imala said.
Meanwhile, CBN has commenced moves to blacklist people that have been indicted for fraudulent practices on the website. This is with a view to helping banks to avoid transacting business with such fraudsters. According to Imala, “the blacklist is going to be useful for the whole industry. Because the list of the fraudsters will be there and anybody that checks the website would be able to know exactly who and who are the fraudsters for purpose of taking precautions.”
He said there was currently no law in Nigeria that criminalising on-line fraud, stating, however, that it was proposed at the meeting that a law be made that would criminalise on-line misbehaviours.
