Dr. Kingsley Moghalu said on Monday that the Central Bank of Nigeria (CBN) needed some degree of flexibility to respond to any financial crises. Moghalu said this in Abuja when the Senate Committee on Banking, Insurance and other Financial Institutions was screening him for the post of CBNâ€s Deputy Governor. â€œThe CBN needs a degree of flexibility to respond to any financial crisis but it must do so in accordance with the relevant laws of Nigeria.
I believe in the current reform in the banking sector because the facts in the public domain shows that there were serious problems. â€œThe CBNâ€™s decision was a step in the right direction so as to help restructure the banking system,â€ he said.
Moghalu blamed the current global economic and financial crises on the lack of purposeful regulations and the inability to bridle greed associated with capitalism. He also identified the lack of effective regulations and failure of corporate governance as the reasons for the countryâ€s financial crisis. Moghalu stressed the need for stakeholders in the financial sector to have a clear understanding of issues relating to corporate governance and ownership control.
He also stressed the need for additional strict disclosure requirements, including risk management, consolidated supervision due to universal banking, risk-based supervision and capacity building to ensure a proactive approach to financial regulations. He said that a micro-finance policy should also be evolved and targeted at groups, particularly women and rural communities across the country.
He also said that primary mortgage institutions in the country should be repositioned for effective service delivery. Moghalu, a graduate of law from UNN and a Solicitor and Advocate of the Supreme Court of Nigeria, was born in 1963. He had worked with the UN in the past.