By BABAJIDE KOMOLAFE

The Central Bank of Nigeria, CBN, has called on all stakeholders in the financial sector to team up to determine the future of banking in Nigeria, saying that banking is too important to the society to be left to bankers alone

“Considering the huge consequences of a banking crisis such as we have witnessed, the future of banking cannot be left for the banks alone to decide. It is a task that requires the individual and collective contribution of stakeholders, with each playing its role effectively”, said Kingsley Moghalu, Deputy Governor, Central Bank of Nigeria.

Speaking in Lagos at the annual stakeholders’ forum of Bank Directors Association of Nigeria (BDAN), he said, “Banking needs to move away from swashbuckling, deal-making accent it has acquired in recent decades, back to the traditional, conservative ethics that emphasises trust between banks and their customers, as well as prudence.

“Let the future of banking in Nigeria be well informed and shaped by the experiences of the past 25 years. If that experience is any guide, all stakeholders-operators, regulators and the banking public-have a key role to play in the sound growth of the banking sector. Banking is too important to any society to be left to bankers alone”.

Speaking on the theme of the forum, “Future of banking in Nigeria: Stakeholders’ Expectation, Moghalu who was represented by the Head of Fiscal Policy and Regulation, Mr. Chris Chukwu,  said bank directors are critical to the shaping of the future of banking in Nigeria.

“As the umbrella body of non-executive directors of banks in Nigeria, BDAN has an important role to play as a key stakeholder through the continuous improvement of the knowledge and competence of bank directors, for the purpose of promoting sound corporate governance and ethical practices within the Nigerian banking industry in line with its mandate. Bank directors, being key decision makers in the industry, need to keep abreast of how these changes will shape the future of banking in Nigeria.”

Moghalu listed seven factors that would shape the future of banking in the country. These are: the new supervisory and regulatory paradigm in Nigeria; The new banking model and its implications; global trends and future of regulation; implications of mergers, acquisitions and consolidation of the banking industry; banks contribution to the real economy; the importance of trust; and financial inclusion.

He said, “The resolution of the banking sector crisis in Nigeria is not guarantee against another crisis in the future. It is true that, with the average capital adequacy of 20 commercial banks now at 17.12 per cent, Nigerian banks are now the most capitalised in Africa.