22 February 2013

Nigeria: CBN Says Banks' Growth Will Reflect in Real Sector

Alhaji Suleiman Barau, A Deputy Governor at the CBN, says the apex bank will ensure that the growth recorded in the banking sector is transmitted to real sector.

Barau made the pledge in Lagos on Friday while delivering a paper on "Balancing Global and Local Regulatory Requirements" at the 4th Annual Eurofinance Conference in Lagos.

Barau, who was represented by the Deputy Director, Banking Supervision, Mr Steve Nwadiuko, said that the CBN planned to use the Basel III programme to impact positively in the real sector.

The News Agency of Nigeria (NAN) reports that Basel is an international framework on risk management in banks.

The CBN adopted Basel II in June 2004, while the apex bank is soon to begin implementation of Basel III.

According to Barau, Basel III will improve banks' liquidity and cash adequacy, help Nigerian banks to meet international risk requirements as well as improve their global competitiveness.

He said that Basel III would lead to the development of many financial products due to higher levels of competition among local and international banks.

"One of the advantages of Basel III adoption is that it will lead to higher credibility and trust in our banking system.

"And all these pluses will be to the advantage of our real sector where more cash will be available for its advancement, " he said.


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