By Ifeanyi Onuba, Abuja

Friday, 10 Dec 2010

The Central Bank of Nigeria has urged the Judiciary to, as a matter of urgency, allow the courts to admit electronic evidence in all cases involving electronic banking crimes in the country.

The Deputy Governor, Financial System Stability, Dr. Kingsley Moghalu, gave the recommendation in Abuja, on Thursday, while presenting a paper at the 10th national seminar on banks and allied matters for judges.

Speaking on the theme “Banking Regulation and Financial Stability in Nigeria: Lessons from Other Jurisdictions,” Moghalu said that the need to admit electronic evidence in court became imperative in view of the growth witnessed in e-banking businesses as well as the need to promote business innovation in the country.

The apex bank deputy governor also called for support for financial regulators by the judiciary when handling cases brought before it. This, he noted, would help to discourage deviant behaviour.

While calling for the establishment of a commercial court, which would help handle financial cases expeditiously, Moghalu said, ”The recent global financial crisis and the distress experienced by banks in several jurisdictions have generated enhanced emphasis on financial stability dimension of the regulation and supervision of banks and financial system.

“The actions taken by the bank, which have resulted in a much improved financial stability landscape in which the Asset Management Corporation of Nigeria has begun to purchase the non-performing loans that nearly brought down several banks had the CBN not intervened, were possible only because of strong legal and institutional framework of banking regulations.”

He added, “But gaps remain and these gaps need to be filled. Against this background, I recommend for your urgent actions the judicial support to financial regulators by handling cases brought before it in a manner that discourages deviant behaviour.

“In view of the growth witnessed in e-banking and businesses, coupled with world trend and the imperative to promote business innovation, electronic evidence should be made admissible in court.”

Also speaking at the event, the President, Chartered Institute of Bankers of Nigeria, Mr. Laoye Jaiyelola, said that the need to organise the seminar stemmed from the fact that an efficient legal system would address all disputes arising from extension of credit.

Source: Punch