Central Bank of Nigeria (CBN) is to inaugurate inter-agency cooperation on the implementation of consolidated supervision for the banking sector, touted as one of the several efforts to underpin the financial industry, Nigeria CommunicationsWeek can reveal.
The inter-agency cooperation will facilitate monitoring of events on a continuous basis so that any deviations can be detected early and corrective actions taken to address the deviation, in order to achieve the business objectives and vision of the organization
Nigeria CommunicationsWeek gathered that the CBN is currently working with the Securities and Exchange Commission (SEC), the Nigerian Stock Exchange (NSE), Nigeria Deposit Insurance Corporation (NDIC) , Nigeria Financial Intelligence Unit and National Insurance Commission to facilitate the evaluation of a banking group through stress-testing and other methods.
They will also evaluate the risks which the operations of each of the component entities in the group could portend to the group and alert relevant stakeholders (institutions and regulators) to take proactive remedial actions before such risks crystallize.
CBN believes that a risk-conscious environment in the financial institutions will further enhance the ability of those institutions to pull through the harsh economic climate unscathed.
Nigeria CommunicationsWeek gathered that risk is the probability that an organization or an individual will be unable to meet some expectations it had set for itself during a given period or could incur a financial loss because of some known or unknown threats or events outside his immediate control.
It is the identification, assessment, and prioritization of risks followed by coordinated and effective application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events.
Sanusi Lamido, governor, Central Bank of Nigeria (CBN) said “banking is not just about deposit mobilization and lending. It is more about properly managing the loans and other assets created from the pool of deposits.”
