Bank Directors Association of Nigeria (BDAN) has lend its support to the introduction of non-interest banking in Nigeria, saying it would enhance the inflow of offshore funds into the country.

Speaking at a Press conference organised by the association on its forthcoming annual Stakeholders’ Forum, General-Secretary of BDA, Mr. Yemi Idowu said that non-interest banking is a well established practice all over the world and it has the potential to enhance offshore funds into the country.

He made this comment in response to enquiries on the position of BDAN on the introduction of Islamic Banking in the country.

Idowu said that what was being introduced is non-interest banking, which is a normal type of banking. He said those referring to it as Islamic banking have another agenda adding that the term “Islamic Banking is not appropriate.”

He said there are many aspects of non-interest banking and Islamic Banking is just one of them.

BDAN is the umbrella body of non-executive directors of banks and it serves as a forum for improving the knowledge and the competence of bank directors for the purpose of promoting honourable practice within the Banking industry in Nigeria.

The association organises quarterly activities which are very enlightening for bank directors but the Stakeholders’ Forum is the major annual event of BDAN. The forum brings together executive and non-executive directors of banks, officials of other financial institutions, regulatory authorities, professional bodies and executives of other leading companies in Nigeria.

Speaking on the forthcoming annual Stakeholders’ Forum of the association, General-Secretary, Mr. Yemi Idowu said that, the “annual Stakeholders’ Forum brings together executive and non-executive directors of banks, officials of other financial institutions, regulatory authorities, professional bodies and executives of other leading companies in Nigeria. Thus an opportunity is created for us to network among ourselves and also share thoughts on the theme of the Forum”.

Explaining the rationale for the theme of this year’s forum, he said, “You will note that the Banking industry has gone through phenomenal changes in the last three years viv-a-vis the global financial crisis, CBN intervention and banking reforms, licensing of Mobile Banking operators, introduction of Islamic Banking just to mention a few.

These and many more changes as well as the new democratic administration are expected to change the practice and business of banking in Nigeria. While change is inevitable, the best way to profit from change is to prepare for it and bank directors being key decision-makers in the industry need to be abreast of how these changes would shape the future of banking in Nigeria so as to be prepared and position their organisations to benefit from these changes.

That is what informed the theme for this year’s Stakeholders’ Forum and the eminent speakers. We believe that BDAN has as part of its objectives and responsibilities to enlighten and educate its members on their responsibilities in respect to their banks.

The Forum should play a leading role in preparing bank directors and the industry ahead of these changes. That is why we have devoted this year’s for this purpose.

Our expectations are that the presentations, discussions and recommendations from the forum will significantly help the industry prepare and take advantage of these changes to influence the future of the banking business in the country.