Strengthen your research outfit for effective policy formation Sanusi tells CIBN

By Helen Oji

..Onasanya urges banks to be wary of another bubble
The former Governor of Central Bank of Nigeria (CBN) Dr. Joseph Sanusi has stressed the need for the chartered Institute of Bankers of Nigeria (CIBN) to strengthen and reposition its research unit to enable it assert firm position on government’s monetary and fiscal policies.

Besides, the outgoing Group Managing Director/CEO, First Bank of Nigeria Limited, Bisi Stephen Onasanya, also warned that Nigerian banks need to be extremely cautious and careful with the current financial challenges to avoid creating another bubble and burst in the system,

Sanusi, who made the statement at the 3rd CIBN Valedictory Lecture organized for the outgoing Group Managing Director/CEO, First Bank of Nigeria Limited, Bisi Stephen Onasanya, submitted that the institute, going by its growth trajectory, has a significant role to play in sharpening government policies and decisions especially in the current economic quagmire.

“The institute should develop full financial independence and self sufficient in its activities not relying on the CBN or banks to sustain its activities so that it can come up boldly about economic policies.

Sanusi added; “You need to implore and strengthen your research department so that you can influence and make contributions on government’s fiscal policy decisions. The institute have a strong role to play in the economy. It is a well respected institute so you should make your honour felt especially at this challenging time.”

While delivering a speech at the 3rd CIBN valedictory lecture entitled ‘Banks, Bankers and the Imperatives for Sustainable Banking’, Onasanya, who warned that Nigerian banks needed to be extremely cautious and careful with the current financial challenges to avoid another bubble and burst in the system, however urged banks to be stronger to fund and develop the real sector rather than chasing profitability by all means even with destructive tendencies.

“A failed bank eventually hurts depositors, and by its implications for the health of the industry, the larger economy. In this context, and learning from my 30 years’ experience in banking, the scenarios playing out in the last couple of months strikes me as the replay of the activities leading to the 1999 banking system crises.