Renaissance Professionals have condemned the recent initiative of the Central Bank of Nigeria (CBN) to categorise banks.
The group in a statement by Victor Sodipo, said the industry has been well categorised and that any further attempt to cause segmentation will bring confusion to the industry. Renaissance Professionals insisted that what would be beneficial to the Nigerian economy is for the CBN to strengthen the already existing institutions and ensure that they are well positioned to deliver on their mandates.
The categorisation will cause confusion in the Nigerian financial system and will also further weaken the financial system and also setback the gains made by the industry in the last five years, says Renaissance Professionals. The body called on Acting President Goodluck Jonathan to stop the CBN Governor, Lamido Sanusi from inflicting damage to the financial system.
“The Nigerian financial system is already highly categorised with institutions already existing to deal with the various target markets that the CBN claims it seeks to now target with so called new model. Already, existing in the Nigerian financial system are 24 universal banks with a global appeal and 900 microfinance banks, which target market are mainly small and medium scale industries at the local government and state level.
“Besides these institutions, there are also 98 Mortgage banks, 84 Finance Houses, 600 Class B Bureaux De Change, 50 Class A Bureau De Change, five Development Finance Institutions (DFIs), which comprises a Federal Mortgage Bank, The Bank of Industry, The Nigerian Agricultural Cooperative and Rural Development Bank, Nigeria Export and Import Bank and the Urban Development Bank. The Nigerian Financial system also has five very active discount houses,” the group added. Renaissance Professionals said the only form of specialised bank missing from the system is an Islamic Bank, but said some investors are already warming up to float one.