Abuja — Minister of Finance Mansur Muhtar has said the unprecedented losses currently recorded by banks in the country will present the opportunity for them to start afresh on a clean note.

He said the losses, though challenging to the banks, would place the financial sector on sound footing and strengthen the economy.

Speaking with newsmen in Abuja weekend, the minister assured Nigerians that his ministry would collaborate with the Central Bank of Nigeria (CBN) with a view to ensuring that the National Assembly gives an accelerated passage to the Bill establishing an Asset Management Company (AMC).

The AMC is expected to provide a vehicle and suitable framework for resolutely addressing the toxic assets of the commercial banks while helping restore liquidity and facilitate flow of resources to the real sector.

He said the ministry in conjunction with the CBN was committed to making sure that depositors' funds were fully protected.

"We have reviewed the recent financial reports presented by the commercial banks and the associated measures to adjust their balance sheets in line with the new rules and procedures. While these may present short-term challenges to the banks, they do provide an opportunity to draw the line and begin afresh. We remain optimistic that the steps being taken will put the financial sector on a sounder footing, which is pivotal to strengthening our economy.

"As this exercise progresses, we wish to reiterate our commitment to ensuring, along with the Central Bank of Nigeria, that depositors funds and creditors interests are fully protected in an orderly and sustainable manner," he said.

Muhtar commended the CBN for the progress made so far in addressing the challenges facing the banking sector.

According to him, "the efforts being made to restore financial sector stability and strengthen the banking system are on the right track."

He pointed out that the Ministry was particularly supportive of the improvements made in the accounting and financial reporting system of the sector, which would enhance transparency and accountability, strengthen corporate governance practices as well as provide a better platform for more effective risk management