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Sanusi at LCCI: ‘I have no regret over banking reform’

The Governor of the Central Bank of Nigeria (CBN), Sanusi  Lamido Sanusi, has declared that he does not have any regret over the decision he took on the banking reform, adding that he will do it over and over again if he had the chance.

Sanusi

Speaking at the second business environment roundtable organised by the Lagos Chamber of Commerce and Industry (LCCI), Sanusi, said Nigeria is the only country in the world where there is no guideline on how things should be properly done and that the CBN would sell any bank if it would create room to feature faceless names.

According to him, the new reform was made so as to do things properly in the banking sector and to stop banks from granting loans only to their friends and relatives, lack of investor and consumer protection; inadequate disclosure and transparency about the financial position of banks; critical gaps in regulatory framework and regulations; uneven supervision and enforcement; unstructured governance and management process at the CBN and weaknesses in the business environment in the country.

“At the centre of last result, when your banks go under, I cannot say I am not responsible for it, we don’t regulate the shareholders, we regulate the banks, the CBN would not only strengthen the financial stability committee, but would also establish a hybrid monetary policy and develop strategies to counter government cyclical fiscal policies,” he said.

Sanusi said the banks will still give loans, but there will be guideline to it which every bank now knows the guidelines and that loans will be given to those who go through the normal procedures.

Furthermore, he disclosed that 40 billion has been deposited in the agric fund, but that they expect more and that 500 billion has also been set aside which 300 billion is for the power sector, while 200 billion for the SMEs.

He said he strongly belief that the reform will no fail, as expected by most shareholders, as he claims that the road-map for the programme was a product of detailed study by the CBN and external facilitators to diagnose and come up with ways to help solve the problem.


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