July 19, 2011 by Ifeanyi Onuba
The Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, said on Monday that the gaps between regulatory standards and practices in developing countries needed to be closed if the nations must remain relevant in the global economy.
The apex bank boss, who said this in Abuja, also revealed that Deposit Money Banks operating in Nigeria had made remarkable progress towards the adoption of the International Financial Reporting Standards.
He said these at a seminar for the banking supervision and financial policy regulation departments of the central banks of the D8 groups.
The D8 countries are Bangladesh, Egypt, Indonesia, Iran, Malaysia, Pakistan, Turkey and Nigeria.
The seminar, which had as its theme, “Enhancing global financial supervisory standards and practices,” was meant to discuss various issues ranging from corporate governance; cross border and consolidated supervision; macro-prudential regulation and information disclosure; and international financial reporting standards.
The apex bank boss pointed out that while most of the developing economies had begun the implementation of Basel III Accord; many developing countries were yet to commence the adoption of Basel II.
Basel III, according to Wikipedia, is a new global regulatory standard on bank capital adequacy and liquidity agreed by the members of the Basel Committee on Banking Supervision. It was developed in response to the deficiencies in financial regulation revealed by the global financial crisis.
Besides the issue of widening gap in regulatory standards, Sanusi added that there were other issues that needed to be addressed.
These include divergent interests and policy priorities between the developed and emerging countries; and the development and coordination of regional and international safety nets.