The Corporation should therefore carryout these functions in consultation with the CBN not with the consent of CBN as both institutions are independent and compliment the functions. Directors of banks should be held are personally liable without any limitation for the causes of the failure of their banks where they have been found to be negligent in managing the bank.
The imposition of penalties and persecution of various offences to serve as a deterrent to officers and directors of banks and will ensure that the banking industry ensures compliance with available laws and regulation in order to avoid paying stiff penalties.
Microfinance Banks lend N1. BOFIA also hikes the fines by millions for all kinds of policy infringement entitled to a fine. With regards to bank customers, BOFIA will develop the financial sector from what it was the last 20 years. Follow us on Facebook and Twitter and send us stories on contact africareinvented. Content creator focusing on finance and business with five years of experience and a foundation in forex analysis.
Christina Ngene Content creator focusing on finance and business with five years of experience and a foundation in forex analysis. You might also like. Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Oluwabunmi Abigael Adeyanju. A short summary of this paper. Download Download PDF. Translate PDF. Ltd v.
O'Silvawax International Ltd. Suit No. N Ltd. Banks are generally known to hold the bulk of the money supply in an economy and they also create money through the loans and advances they extend to their customers. Banks act as the vehicles of implementing monetary policies and they intermediate between the surplus and deficit units of the economy1. The banking sector serves as the catalysts of growth and development in any economy. On the strength of these sensitive roles played by the banks in the economy, they are vulnerable to liquidity problems which more often than not lead to a loss of public confidence in the bank's ability to handle their funds.
This is why the system is regulated and supervised because of activities which could impair the stability and solvency of the banks2. This is to ensure a sound and safe banking system in the economy, encouragement of efficiency and development of a healthy competition amongst the banks, to ensure that they maintain adequate internal control measures to prevent incidences of fraud, forgeries and other financial malpractices. Furthermore, the banking business is highly conducted in secrecy as compared to other sector businesses, thus the need for strict supervision.
This helps to ensure that high quality banking services are maintained. Jan 5, Bank Regulation in Nigeria. Nigerian Observer News. Financial Management. Clements University. Boston: Pearson, Addison Wesley. The work will also briefly look at the regulation of Banking business in some selected jurisdictions. Chamber's Twentieth Century Dictionary defines a bank as an "institution for the keeping, lending and exchanging, etc of money"5. The term bank is often used interchangeably with 'banker'.
The Bill of Exchange Act6, defines a banker as "including a body of persons whether incorporate or not, who carry on the business of banking". Black's Law Dictionary. Minnesota: Thomas Reuters. A for definition of a Bank. Delhi: Vrinda Publications. B3, L. N Going by this definition, when a company receives deposits or current or savings account, pays or collects cheques drawn by or paid in by a customer and provides finance, such a company is said to be engaged in banking business8.
It is a set of specific rules or agreed behaviour either imposed by some government or external agency or self-imposed by explicit agreement within the industry that shave the activities and business operations of the institutions in the industry to achieve a defined objective.
Overall legal control measures i. Controls on bank staff by the CBN iii. Monitoring or regulation of legal identity of banks iv. Legal control measures for enforcement 10 Iyade, Op. As such, any person that desires to engage in Banking business in Nigeria must first be an incorporated entity and must have obtained the licence from of the CBN to operate.
An application for the grant of the licence is made to the Governor of the CBN in writing12 and the steps are:- i. A written application for the license which shall be accompanied by a feasibility report of the proposed bank, a draft report of the memorandum and articles of association of the proposed bank, a list of the shareholders, directors and principal officers of the proposed bank and their particulars, the prescribed application fee and such other information, documents and reports as the CBN may, from time to time specify It should be noted that, in the case of a proposed bank, the minimum paid-up capital is deposited after the applicant for the banking licence has furnished all such information, documents and reports required under step i above The 11 Oche, N.
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