Financial system: Economists support creation of regulatory council


By Stanley Opara Tuesday, 31 Aug 2010



The Registrar, Institute of Chartered Economists of Nigeria, Mr. Peter Ikpomejo, has said that the request for the establishment of a council of Nigerian financial system regulators by the Minister of Finance, Mr. Olusegun Aganga, is a step in the right direction for the economy.


He said to ensure a vibrant economy following the crisis in the financial sector, such council would further harmonise activities in the sector.


The ICEN Registrar, who spoke to our correspondent on the telephone on Monday, maintained that considering the delicate nature of the economy, establishing a body that would work towards synchronising the plans and actions of various stakeholders in the Nigerian economy, was very timely.


He said for the Nigerian economy to make headway in a period of huge economic and financial challenge at the local and foreign front, there must be a strong co-ordination of the interests of various stakeholders in the sector.


Aganga had said that the council would comprise all the current key financial regulators and should have as one of its functions the overseeing of the affairs of the financial system at the micro level.


According to him, the need to enhance policy co-ordination, transparency and collaboration in the system, informed the initiative, as these would enable the government to achieve its drive for the Vision 2020 programme.


Aganga said, “Since the emergence of the global financial crisis, we have generally focused on short-term ad hoc measures to address the symptoms of the regulatory deficit, instead of finding a holistic solution for the underlying causes of the recurrent financial sector distress.


“Recent events have confirmed that the challenges facing the financial system were deep rooted. Therefore, the solution needs to go beyond quick fixes. To reiterate the depth of the financial system crisis strongly suggests that our regulatory architecture is in dire need of fundamental reform.”


According to the finance minister, the Central Bank of Nigeria will continue to be responsible for the prudential and risk management for the banking system in closer coordination with the other regulators.


Source: Punch



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