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Nigeria: Cental Bank Governor harps on Risk Management

Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, said for the rescued banks to improve on their operations they must also improve on their risk management.

Speaking to newsmen in Lagos, Sanusi said  the managers of these banks must also improve on their operational capacity, assets quality and corporate governance.

Sanusi, who was reacting to why international financial assessment institutions rate Nigerian banks low, explained that it is only when  these conditions are met that the Nigerian banks would get better credit rating by international rating organisations like Standard &Poors.

Standard and Poors recently rated some Nigerian banks as high in risk management with poor regulatory oversight.

Sanusi said in as much as he is not worried over the category B given to Nigerian banks by the rating body, the CBN has  moved into the rescued banks because it realised the need for them to improve on their risk management.

He said  what has happened is a sign that the banks need to improve their operations to have better rating and explained why CBN moved into the rescued banks.

“How will you expect a high rating of our rescued banks? What has happened is a confirmation that there is need for the banks to improve their operations. We moved into the rescued banks, because we realised the need for the banks to improve their risk management.”

He also said: “What S&P said about our banks is that there is need to improve risk management. The way to achieve this in Nigeria is for the affected banks to improve their capacity, improve their assets qualities, improve on their risk management as well as their management and corporate governance.”

Sanusi took a swipe at politicians, especially those holding public offices in the country and described them as accomplices in eroding depositors and investors savings in the banks and the stock market.