The Central Bank of Nigeria (CBN) has sought the collaboration of the Institute for International Finance (IIF) on the management of foreign bank subsidiaries.
This would help prevent banking crisis that may result from cross border expansion due to lack of management or adequate supervision of the foreign subsidiaries.
According to Sarah Alade, deputy governor, economic policy, the banking crisis in the Nigerian banking system exposed the immense potential stability risks that could result from cross border expansion and underscores the need for effective cooperation between host and parent country authorities for banks with international operations.
“We must ensure that the supervision of foreign bank subsidiaries is adequate (Basel Concordat, 1983), with a set of well-established principles of effective supervision. This is an area where we can benefit from collaborative research and international experience of IIF”, Alade said at the outreach event jointly hosted by IIF and CBN, in Lagos.
HOPE MOSES-ASHIKE
