Required Credentials For New CBN Governor
By Alh. Abbati Dankanti Gumel
I suggest that for any new CBN Governor the country may have must be in a position to execute the following salient economic features for the country to succeed in order to face the financial challenges ahead both domestically and in international perspectives.
There is a need to take immediate action in respect of the financial intermediation of Banks. There is an urgent request for the assessment of Banks to be carried out to ascertain the true position of Banks to know those that are flamboyant cash deposits Banks to those that face hard times and are illiquid cash strapped deposits Banks.
Activities of our Bureau De Change (BDC) called for the attention of new CBN Governor to have a second look at their activities with a view to finding out the economic saboteurs among them.
New CBN guidelines on BDC operations must be made known to them to understand and comply accordingly to desist from any illicit role they may play to avoid facing the wrath of the law.
It's interesting for the new CBN Governor to avail himself/herself the true position of Banks involvement in the Nigerian Stock Market. The role they play, total placements as well as loans and advances granted to customers to purchase shares including details concerning securities pledged to the Banks before obtaining such loans.
This would reveal convincing financial reports on the Banks` down- to-earth activities in the present vulnerable position of the Nigerian Stock Market.
Reports sent to the CBN by Banks daily, weekly, monthly, and quarterly must be scrutinized with all the available indices to confirm their relative ness and effectiveness.
Mrs. Farida Waziri, Head of the EFCC had at one time or the other accused the Banks of high handedness and refusal to disclose certain vital information on foreign transactions.
Recent CBN guidelines on regulation and supervision of Shariah Banking System in Nigeria has been a welcome development. I, personally, doff off my hat in absolute solidarity to Professor Charles Soludo.
A lot of our rural and un banked populace constitute about 75% in this far northern cosmopolitan areas. These rural dwellers and the un banked people should be allowed to establish Islamic Microfinance Banks (IMFBs) with a view to incorporating other MFBs wishing to provide Shariah compliant products.
The new CBN Governor must be able to address the issue of Islamic Banking System with seriousness in order to make it effective and operational nationwide.
The Islamic Banking system guidelines refused to identify a Bank with 'Islamic' letters as part of its name but a logo to be introduced and adopted by the CBN instead. Why? This is clearly an operational CBN policy error.
Why can't the CBN make it optional for any Bank wishing to use 'Islam' in its name to do so? Since customers are to decide and choose the best products and services offered by any Bank, not the religious intonations.
This type of impediment for Islamic Bank would always be looked at as if the CBN is making it difficult for the establishment of Islamic bank.
It happened before when initial capital of establishing a bank did not reach N25 billion as it is presently upwardly revised.
I hope the new CBN Governor will refocus this policy and amend same to reflect the views and aspirations of those wishing to establish Islamic banks as well as the Islamic Microfinance Banks.
This would go along way in witnessing the 75% of the un banked to stimulate the economy and boast the morale of our economic investors both at home and abroad.
The new CBN Governor should look at the discrepancies and lapses experienced in the operations of the Automated Teller Machines (ATMs). Many innocent Banks` customers were embarrassed, cheated, defrauded and were, even afraid to patronize the services of those ATMs. This is a crucial service which ought to be there unfailingly to provide 24 hour service to both Nigerians and Foreigners alike conveniently and by any standard.
Lastly, some state headquarters in the country operate without the CBN presence which made it ironical to have the presence of commercial Banks without the Apex Bank located. The new CBN Governor may have a twist of policy to maintain its presence in those states where none exists.
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Alh. Abbati Dankanti Gumel,
Contact--Darmanawa Quarters - Karkasara,
Tarauni Local Government,Kano State.
E-mail: [email protected]