Bank Reforms: CBN Replies Gusau
- By Williams Ekanem
- Published May 3rd, 2010
- News
- Unrated
For the first time since General Aliyu Gusau, National Security Adviser (NSA), expressed his reservations about the on going bank reforms, Lamido Sanusi, Central Bank Governor, said it is an unfair comment.
Speaking in Washington D.C, venue of the World Bank Spring meeting, Sanusi said, “Although I have not spoken with the NSA since the report, I want to believe what he actually said was slightly reported out of context, but even if he actually said so, the criticism is not based on sound economic logic.”
According to him, when he took over at the CBN, inflation was 16 per cent, now 11 per cent, Gross Domestic Product (GDP) now six per cent, the capital market has improved by 30 per cent and interbank rate has dropped to two per cent from 22 per cent, all showing that the reforms are having positive bearings on the economy.
Sanusi pointed out that the apex bank welcomes all criticisms and all should be free to make their comments but that people should be conversant with the fact that there are costs to reforms anywhere in the world.
Even in developed markets, he stated that negative credit growth is been recorded in time of reforms, adding that if CBN reforms are faulty, then it would be very unfair on other banks that were sanctioned one way or the other. Gusau, a fourth night ago, faulted the on-going banking sector reform, saying the CBN intervention “seemed to have damaged economic activities in the banking sector to the detriment of the larger society”. Reports quoted Gusau to have said that the travails of the banking sector and the way they were addressed reflect double standards, which critics perceive in the administration of justice, lamenting that “only a few banks were penalized for what every bank seems to be doing”.
Gusau said “the fragility of the economy further dictates that offenders be interdicted without damaging the sector.”
He also reviewed the on-going anti-corruption campaign in the country, writing it off as “ineffective and selective” but promised that the current administration would fight corruption employing equal standards across board.
Speaking in Washington D.C, venue of the World Bank Spring meeting, Sanusi said, “Although I have not spoken with the NSA since the report, I want to believe what he actually said was slightly reported out of context, but even if he actually said so, the criticism is not based on sound economic logic.”
According to him, when he took over at the CBN, inflation was 16 per cent, now 11 per cent, Gross Domestic Product (GDP) now six per cent, the capital market has improved by 30 per cent and interbank rate has dropped to two per cent from 22 per cent, all showing that the reforms are having positive bearings on the economy.
Sanusi pointed out that the apex bank welcomes all criticisms and all should be free to make their comments but that people should be conversant with the fact that there are costs to reforms anywhere in the world.
Even in developed markets, he stated that negative credit growth is been recorded in time of reforms, adding that if CBN reforms are faulty, then it would be very unfair on other banks that were sanctioned one way or the other. Gusau, a fourth night ago, faulted the on-going banking sector reform, saying the CBN intervention “seemed to have damaged economic activities in the banking sector to the detriment of the larger society”. Reports quoted Gusau to have said that the travails of the banking sector and the way they were addressed reflect double standards, which critics perceive in the administration of justice, lamenting that “only a few banks were penalized for what every bank seems to be doing”.
Gusau said “the fragility of the economy further dictates that offenders be interdicted without damaging the sector.”
He also reviewed the on-going anti-corruption campaign in the country, writing it off as “ineffective and selective” but promised that the current administration would fight corruption employing equal standards across board.
