The Central Bank of Nigeria (CBN) will soon stop performing its role
as ‘lender of last resort’ to the banking system. CBN Governor, Mr.
Godwin Emefiele, disclosed this in Abuja at the annual Banking and
Finance Conference of the Chartered Institute of Bankers of Nigeria
(CIBN).
In a keynote address on the theme of the conference,
“Innovation in the Financial Services Sector: Driving Nigeria’s New
Economy, Emefiele said that the decision of the apex bank to cease
performing the role of ‘lender of last resort’ is one of the reforms
aimed at improving the nation’s financial system.
He said,
“Despite the progress we have made, I believe that this conference would
help illuminate some lingering challenges and proffer durable and
innovative solutions. For example, the growing menace of cybercrime and
electronic payments fraud continue to challenge the payments industry
globally and Nigeria must stay ahead of the curve in improving its fraud
management strategy.
In that vein, we are collaborating with law
enforcement agencies to set up a Dedicated Electronic Payments and Card
Crime Unit in the Nigeria Police. Similarly, consultations are ongoing
for the establishment of an industry fraud risk intelligence bureau and a
Security Operations Centre (SOC).
“Furthermore, in line with the
national payments system strategy, we are addressing settlement risks in
the payments system, by signaling that the Central Bank will cease its
implicit role of lender last resort to the payments system. CBN is
facilitating the articulation of the framework for the adoption of
“survivor pays” collateral management model, in line with the BIS/IOSCO
Principles for Financial Market Infrastructure (PFMI).
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