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Emefiele vows to enforce competency framework in banking industry

By BusinessNews Staff on August 3, 2014

Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele, has promised to continue to work with stakeholders in the banking industry to ensure the implementation of the competency framework for the industry is realistic.

A statement from the Chartered Institute of Bankers of Nigeria (CIBN) quoted the CBN governor to have said this during a meeting with the President/Chairman of Council of the Institute, Mrs. ’Debola Osibogun and other executives members of the CIBN in Abuja.

“The Central Bank of Nigeria will continue to partner with the CIBN and other stakeholders in ensuring that the Competency Framework is practical and realistic to the benefit of the banking industry,” he assured.

As part of efforts to promote skills and competence in the banking industry, the central bank had directed that persons for the position of Assistant General Manager (AGM) and above would be appointed in line with its appraisal for Approved Persons Regime (APR).

The apex bank, which also said the same rule would be enforced for other critical positions in the sector, had explained that the move was to ensure that only fit and proper persons man the different strategic and control functions within the banking industry.

The banking sector regulator had disclosed this in a 79-page document titled: “Draft Competency Framework for the Nigerian Banking Industry.”

Continuing, Emefiele reiterated that the central bank under his leadership would strategically pursue a gradual reduction in interest rates as well as inclusion of unemployment rate in the monetary policy decisions.

He added that exchange rate stability would be maintained while efforts to sustain foreign exchange reserves accretion would be maintained.
According to the CBN governor, outsourcing the functions of banking supervision and examination of the CBN may compromise the stability of the financial system.

Earlier, the CIBN commended the initiatives and policies of the governor geared towards further improving banking practice and financial system stability.

Osibogun noted that the initiatives of the apex bank were comparable with what was obtained in the developed economies, adding that the Nigeria banking industry is better positioned to support business and the economy.

Osibogun described the new code of conduct in the Nigerian Banking industry approved by the Bankers’ Committee as an important strategic initiative that would promote good banking practice and ethics while restoring public confidence in the system.

She expressed satisfaction with the level of cooperation from bank chief executives, disclosing that some of them had signed the Conduct Form and mandated their staff members to do the same.

The CIBN boss stated that the objectives of the code of conduct include guiding every member of the institute, both individual and corporate in meeting obligations to customers and other stakeholders by maintaining and improving standard of service, performance and quality of banking products; ensuring that all bank employees conduct their duties fairly and honestly; and maintaining best banking practice and strong commitment to sound ethical and professional standards in the banking industry, among others.

She commended the Central Bank of Nigeria and the Bankers’ Committee for giving the institute the opportunity to partner with them in the implementation of the banking industry Competency Framework and assured the CBN governor of the institute’s continued support to the industry.

She also urged the CBN to take every necessary measure within its mandate to reduce the interest rate as well as maintain exchange rate stability in order to encourage and attract both local and foreign direct investments in the Nigerian economy.

[This Day]

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