Buhari receives bankers acolades

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The Chartered Institute of Bankers of Nigeria (CIBN) says President Muhammadu Buhari’s administration has recorded great successes in the banking regulation, which assisted in helping the nation out of recession.

Dr Uche Olowu, President ofthe Chartered Institute of Bankers of Nigeria (CIBN)

Dr Uche Olowu, President of the Chartered Institute of Bankers of Nigeria (CIBN)

Dr Uche Olowu, President of the institute gave the commendation on the sideline of a “Special Luncheon” held in his honour by the management of the Caleb University, Imota in Lagos State.

“You will realise from the fact that shortly he was sworn-in, the economy went into recession and of course in recession.

“This was occasioned by fall in government revenue occasioned by fall in oil price and that has a toll also on the banking system because what it means is that there was the scarcity of dollar, the exchange rate went into the roof.

“But with the alignment of physical and monetary policies, you find out that we came out of recession.

“That is a big plus because never have we had a situation where you see that kind of synergist alignment between physical and monetary policy. So to that extent, you give kudos to them.

“There are a lot of reforms that the CBN governor has been doing…..initially when he started, of course, there was pushback and kick back, but today, we are better for it.

“The agricultural revolution, the intervention by the apex bank means quite a lot to the economy because it was, in furtherance of the government policy of food security; so he intervenes a great deal in making sure that the rice revolution works.

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“And so, that to great extent, has also improved the economy.

“And of course, a successful economy means that the financial sector would be deepened.

“So to that extent, you also will agree that yes, the banking system is better off for the kind of reform.

“The government, you must give kudos to them that they have done well, although there is still room for improvement,’’ the CIBN president said.

He, however, identified some weak area that needed adjustment and suggested certain remedies for the government.

“I think the banks are well regulated. There are some policies that negate efficient banking system.

“Take an example, the sovereign risks that the banks took, take away liquidity from the system.

“So, the governments should respect their own obligations because it sends out a signal to investors that if your sovereign risks that bank took were not respected because the banks are so pivotal to sustainable economic growth.

“Everything that would be done to making sure that the banks are properly regulated, policies are sustainable, because banks do not strive on uncertainty.

“There is too many policy summersault; that should be stopped and then we should also encourage the issues of building human capital that would make for the virile banking system.

“We also will encourage a situation where the government will align physical and monetary policies basically and then regulation and compliance issues are taken seriously.

“That heavy punishment, fines should be meted to any person so that it should serve as a deterrent to whoever that would want to compromise the system.’’

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By Oluwashina Iyanda

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