As part of the celebrations marking the 40th anniversary of the entrepreneurial development bank of the

Netherlands (FMO), the Bank organized a conference on the Future of Banking from 1st – 2nd November, 2010.

The Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi delivered the keynote address on the first day of the conference.  The Governor spoke on the topic “The future lies in the hands of regulators”.  In his speech, the Governor traced the history of the current financial crisis bedeviling the world economy and highlighted both the tactical and strategic measures by the government of Nigeria towards addressing the financial crisis as it affected the Nigerian economy.

The Governor informed the conference that the government of Nigeria through the CBN was very clear on the need to strengthen the hands of the regulators of the financial sector.  This he said was because the financial crisis in Nigeria was precipitated by the lack of enforcement of the basic rules of the banking industry.  As a result of that strategic decision, CEOs of banks who were found to have flouted the rules of the financial sector were tried, some have been sent to jail and others will follow by other countries.

The Governor advocated the adoption of the measures taken by the Nigeria government, regarding the financial sector of the Nigerian economy.  He was of the opinion that the adoption of those measures will greatly sanitize and ensure a bright future for the banking and financial sector of the world.

The Governor’s address was well received.  Participants, especially the President of LAFISE who discussed the Governor’s presentation, called for restraints in the strengthening of the hands of the regulators of the banking industry so as not to stifle innovation, in risks management increase stagnation etc. He observed that the current financial crisis was not the first of its kind and that the world economy was sufficiently resilient to overcome the current crisis and to rebound.  He stated that regulation was necessary but that it should not be an end in itself but a means to an end – the revival of the world economy from recession.