Politics
A financial expert, Prof Akpan Ekpo, says the recent dissolution of Boards and management of four commercial banks by the Central Bank of Nigeria (CBN) for alleged infractions is a significant development in the financial sector.
The former Director-General of West African Institute for Financial and Economic Management (WAIFEM), gave his views in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.
Ekpo, an economist, noted that the appointment of the new executives to replace boards and management of the affected banks highlighted both potential benefits and dangers.
The affected financial institutions are Union Bank, Keystone Bank and Polaris Bank, over alleged non-compliance with Banks and Other Financial Institutions Act, 2020.
NAN recalls that the development was fallout of the report of a special investigator instituted by President Bola Tinubu on the activities of the CBN.
This intervention, Ekpo said, was a positive signal to financial institutions that the CBN would prioritise sound corporate governance.
According to him, this in turn, can benefit the banking and finance sector by preventing future scandals and promoting stability.
“The CBN has oversight (function) over banks, hence, the right to reconstitute the boards once certain aspect of corporate governance is bridged.
”The boards of the selected banks must have done something wrong based on the forensic report of the Investigator.
“What has happened sends a warning signal that the CBN should ensure sound corporate governance, which is beneficial to the banking and finance sector in particular, and the wider economy.
“There may be no risk of contagion, but the CBN must appoint persons with integrity, credibility and experience into boards of banks.
“On the other hand, if the boards of several banks are sent packing, it will send a wrong signal that the monetary and financial system is in trouble.
“This will not augur well for the economy. The CBN’s intervention is a necessity but not a sufficient condition for stability in the banking sector of the economy,” he said.
However, the CBN has appointed new leaders for the three banks.
They include Yetunde Oni as the new Managing Director/Chief Executive officer of Union Bank and Mannir Ubale Ringim as executive director.
Also named is Hassan Imam, who will take the helm as Managing Director and Chief Executive Officer of Keystone Bank. Chioma A. Mang will serve as executive director of the bank.
A new leadership team was also announced for Polaris Bank, with Lawal Mudathir Omokayode Akintola appointed Managing Director/Chief Executive Officer and Chris Onyeka Ofikulu named executive director.
T.
-January 12, 2024 @ 5:04 GMT|
Tags: Prof Akpan Ekpo
