Emiefele Reads the Riot Act to Bank Executives, Shareholders
CBN Governor, Godwin Emefiele, has warned bank executives and shareholders not to see bank licences as a right but a privilege that can be taken away.
Following the unending credit squeeze in the Nigeria financial sector, Central Bank Governor, Godwin Emefiele, has warned commercial bank chief executives not to see their operating licences as a right.
Emefieleg gave the warning on Tuesday while addressing stakeholders at the end of the Monetary Policy Committee, MPC, meeting.
Emiefele, who also pointed accusing fingers at bank shareholders, cautioned tthem to desist from ‘misbehaving,’ reiterating that a banking licence is a privilege that can be withdrawn at any time.
“The bank has always warned shareholders of the banks against misbehaving. They should know that depositors’ money in most banks is bigger than shareholders’ funds. The banks are owned by depositors and not the shareholders because of the amount of money that comes from these two groups."
He pointed out that the CBN cannot afford to over-tighten the economy, citing the financial system crises in the United States and Switzerland.
While allaying fears that what happened in both the Switzerland could happen in Nigeria, the CBN boss insisted that the apex bank has taken steps to insulate local banks from risks.
“The prudential regulations put in place even before I started banking have ensured that the banks are insulated against such a crisis,” he stated.
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