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CBN to provide framework to drive corporate governance in banks

By on March 8, 2013

The Central Bank of Nigeria (CBN) says it will provide the framework for good corporate governance to strive in the financial sector.

The CBN Director, Corporate Communications Department Ugochukwu Okoroafor, made this known in an interview in Lagos on Friday.

Okoroafor said the apex bank had adopted the required measures to prevent poor corporate governance among banks

He said the over capitalisation of the banks was part of the regulatory step to ensure that sanity returned to financial sector.

The CBN director also said that the creation of the new banking model from the universal system would ensure that banks focused on their core investment.

Okoroafor added that some of the banks used their subsidiaries to siphoned money.

According to him, the introduction of zero tolerance in the financial sector will enhance good corporate governance and check imbalance.

He said the post consolidation era led the apex bank to remove some managing directors of banks due to “misuse of power’’ in their respective banks.

He said the CBN was working on micro-financial guidelines as regards policies in the financial sector

[Daily Times]