Sanusi Named World's Best Central Bank.

 Sanusi Named World's Best Central Bank.

This is An Article Written by Emele Onu for Thisday

The global financial intelligence magazine, The Banker, has conferred double awards on the Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi.

The awards are: World Central Bank Governor of the Year and African Central Bank Governor of the Year.

 

The Banker, a publication of the Financial Times of London, United Kingdom, noted in a release yesterday, signed by the Country Representative, Nigeria Office of the renowned magazine, Mr. Kunle Ogedengbe, that in the last 18 months Malam Sanusi has been in office, he has salvaged a crumbling Nigerian financial sector, including implementing reforms that have put Africa's most promising market back on the map for investors globally.

Editor of the magazine, Mr. Brian Caplen, noted in the 2011 January edition of The Banker, billed to be distributed at the World Economic Forum, Davos, Switzerland, that a few candidates' names can generate an overall consensus on judging panels and yet, when it came to finding the best global central bank governor of the year, Sanusi was chosen unanimously.

Sanusi, has been globally and locally acclaimed as a reformist that saved the Nigerian banking system from collapse, at a time it seemed all was not well with the industry.

The CBN governor had shortly after his assumption of duty in July 2009 initiated an examination of the 24 banks in the country. The examination showed 10 banks as grossly lacking in one or all of the test areas capital adequacy, liquidity and corporate governance.

The CBN governor removed the executive managements of eight of the banks and replaced them with CBN appointees, following which he rescued the intervened banks with a N620 billion bailout and launched full blown banking reforms encapsulating the setting up of asset management company, recapitalisation and the abolition of universal banking, among others.

 

Caplen stressed that Sanusi embarked on a radical anti-corruption campaign aimed at saving the 24 banks from the brink of collapse and pressed for the managers involved in the most blatant cases of corruption to be charged and convicted where found guilty.

 

"Despite the big challenge of facing up to powerful people, who held considerable sway in the country, Sanusi never looked back and got the support of the public as they were made aware of the scale of corruption, which made the public to support the change he promoted.

"Another key reform of the banking sector introduced by Sanusi has been to limit the tenure of bank CEOs to a maximum of 10 years. They will have to leave office at the end of their term regardless of their record. This policy has already led to change of leadership at UBA, Zenith and Skye banks," he added.

The editor said that the reforms initiated by Sanusi had been hailed as necessary to sanitise the banking industry and that observers had argued that, had these reforms not been initiated, Nigeria would have entered into another round of banking distress.

According to The Banker, the implementation of stricter disclosure policy by the CBN had also led to a culture of greater transparency in the sector.

The magazine noted that the reforms of Sanusi are to enhance the quality of the Nigerian banks, establish financial stability in the system, provide enabling and healthy financial-sector evolution as well as ensuring that the financial sector contributes to the real sector rather than just serving the banking sector alone.

The Banker, a publication of Financial Times Newspaper, which is regarded as the most influential newspaper in the world, is a global financial intelligence magazine published since 1926.

It is the definitive publication that provides guide to bank ratings and analysis globally and the definitive reference on international banking for finance experts, governments, chief finance officers, CEOs, Central Bank governors, finance ministers, and other decision makers globally.

According to the Global Capital Markets Surveys (GCMS), the only independent media benchmarking study available in the capital markets industry and provides insight into who reads what at the world's financial institutions, amongst monthly finance titles globally The Banker is number one in capital markets, EMEA region and bank as well as financial institutions.