Governor of the Central Bank of Nigeria, Malam Lamido Sanusi, has criticised conventional financial institutions, saying the current economic meltdown has exposed their deficiencies.
Speaking at the at the 11 Ramadan Symposium organised by the Movement for Islamic Culture and Awareness (MICA) in Kaduna on Saturday, Sanusi said the meltdown severely undermined and damaged the confidence in the global financial system.
Sanusi, who was represented by the Assistant Director of Banking Operations in the apex bank, Mohammed Lere, said that Islamic financial institutions should take advantage of the meltdown by providing a credible alternative to the existing order.He called on scholars, law makers and bankers to re-assess the opportunities provided by the Islamic financial system with a view to exploring them.The governor said that Islamic financial institutions were the only ones that proved resilient to the current economic crises, adding that they resisted the meltdown because of the moral values entrenched in them.
He said the system had experienced a rapid growth of â€œconservatively estimated at 10 per cent to 15 per cent a year and is worth 70 billion dollars in assets.â€Sanusi said that the crisis in the global mortgage sector was unthinkable in the Islamic financial markets because the Islamic financial system was built on core ethical principles of the Koran, devoid of speculations and interests.In his presentation, a Stock Broker, Alhaji Abubakar Fari, described the recapitalisation of the banking sector as a deceptive gimmick aimed at enriching a few capitalists in the country. Fari said the fallout of the recent CBN audit of the banks showed that the recapitalisation was conceived in bad light, saying that raising the banksâ€™â€™ paid up capital from N25 million to N25 billion was based on speculation. He said the project was bound to fail since it was rooted in speculation and interest with the underlying stock market intrigues.