By Peter Egwuatu

The Central Bank of Nigeria (CBN) has said that Assets Management Company of Nigeria (AMCON) has been able to provide succour to stockbrokers and distressed banks by acquiring non performing risks assets of some banks worth N2.8 trillion.

The Deputy Governor, Financial System Stability, CBN, Dr. Kingsley Moghalu told stockbrokers recently that the apex bank would soon announce some measures that would stimulate the capital market , noting that the brokers have a price to pay.

According to him, “The CBN and Securities and Exchange Commission (SEC) have come up with new margin rule where banks would no longer give more than 10 per cent of its total loan portfolio to capital market related lending. The intervention of AMCON has so far boosted the distressed banks liquidity as well as enhanced their safety and soundness”

He further charged stockbrokers to be proactive and boost transparency in its activities so as to return confidence in the market.

In his words, “ A year after the CBN commenced reforms, confidence in the banking sector has been progressively restored. We are not going to liquidate any bank as being misconstrued.

Value –destroying practices that almost led to the collapse of the banking industry have largely become a thing of the past. No bank will be liquidated.”

Moghalu, further disclosed that banks have begun to put in place best practices of corporate governance and risk management. Transparency and public disclosure of transactions have markedly improved.

He, however, admitted the need for regulators to collaborate and streamline policies so that the reforms in the financial system could have more impactful gains.

According to him, “The CBN will continuously collaborate with the SEC to adopt appropriate measures to ensure that financial system is stable and well equipped to stimulate economic growth.

As Nigeria seeks to become one of the top 20 economies in the world by year 2020, there is need for longer term funding to support the achievement of the country’s economic aspirations.”