THE Governor of Central Bank of Nigeria (CBN), Mallam Lamido Sanusi, yesterday, said that the much awaited Assets Management Company  of   Nigeria (AMCON) expected to bring relief to the rescued banks will kick off as soon as President Goodluck Jonathan nominates the...

executive members of the company.
The CBN Governor, represented by the Director, Development Finance Department, Mr. Joe Alegieuno, at the launch of Afrinvest 2010 Nigerian Banking Report titled, “ The 2010 Nigerian Banking Sector Report Reforming Towards Lending to the Real Sector” disclosed this, stressing that the financial sector has contributed greatly to the real sector in the past one year of one banking reform.
According to him, “ The CBN will penalise any bank who apply and get this fund and do not disburse it to those who apply for them. We don’t want the real sector fund to be kept in the vaults of these banks. The money for the real sector is channel through the Bank of Industry(BOI). Already 305 promoters of the real sector have apply for this fund and most of them would have gotten it. The CBN will monitor the funds and ensure that nobody divert it”.
He further declared that AMCON will assist banks to improve their capital and liquidity positions by taking troubled assets (qualifying loans) from the banks.
In his review of the banking sector reform, Managing Director of Afrinvest Limited, Mr. Ike Chioke stated that the banking system has undergone remarkable changes over the years in terms of the number of institutions, ownership structure and the depth and breadth of operations.
According to him, “ The changes have been influenced largely by opportunities presented by the deregulation of the financial sector, globalization of operations, technological advancements and adoption of regulatory guidelines that conform to international standards”
He recalled how the CBN prone the banks from 89 to 25 and later 24, stressing that some of the perceived temporary dislocations evident in the nation’s financial system, from the crash in deposit rates to falling yields on government paper, are symptomatic of a longer term structural re-balancing currently taking place.
According to him, “ Afrinvest Research believes that ultimate objective behind the various reforms initiated by the CBN is to move the industry towards an environment where single digit interest rates are the norms rather than the exception. Should Nigeria get to that promised land , Sanusi in his capacity as the nation’s treasurer , would have won the battle to save the economic soul of the country by creating an environment wherein the real sector can access sustainable long term finance for economic development”.
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