CBN begins competence gap analysis in banks
Stiffer sanctions await banks that flout regulations from henceforth, the Central Bank of Nigeria (CBN) warned on Tuesday.
Besides, the CBN has begun a gap analysis of banking industry competence to ascertain the qualification and experience of those that are currently in control functions in the industry.
The Deputy Governor, Financial System Stability, CBN, Dr. Kingsley Moghalu, who disclosed these in an address at the 2013 edition of the Continuous Education Programme for directors of banks and other financial institutions in Lagos, said that in addition to other penalties, the names of the delinquent banks would be published in newspapers.
He made these revelations in an address titled: 'Charting New Frontiers for Global Competitiveness Beyond Compliance: Imperatives for the Board,' presented at the occasion.
He said, 'Any institution that fails to comply with regulatory framework will face sanction, and when you face sanction, one of the things we want to do now is how to publicise sanctions being placed on financial institutions.
'It is not enough to come and tell you that you have failed in doing so and so and we just ask you to pay fine. When you issue your annual report, you put it in some tiny print somewhere. That is not enough anymore. We are looking at in the future, how we can publicise the sanctions in newspapers.
'Look at what happened in London, with JP Morgan and all other banks. When they make regulatory mistakes, it is blown all over the place and the regulators make them pay hundreds of millions of dollars in fine. But in this country, what does Banks and Other Financial Institution Act (BOFIA) tells you? Pay N2 million!'
the deputy governor also underscored the need for directors of financial institutions to ensure that their chief executives were competent and accountable to the board.