The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has described most Nigeria banks are gamblers .Speaking at the first distinguished lecture of “The Knowledge Centre, Onicha-Ugbo”, yesterday in Asaba, Delta state, the CBN Governor accused the banks of gambling with depositors’ money, and colluding with stock markets where consumers are turned to casino players. . The CBN Governor implored depositors from entrusting their money with banks he called “gamblers”as he said the market that was in the past performing in 2007 has turned out to be worse in 2009.
Mallan Sanusi who was a lecturer at the first distinguished Lecture on The Economy In Perspective: Consolidating The Gains of The Banking Sector Reforms, packaged by the Delta State Government, in Asaba, lambasted politicians for being behind the plights of the nation’s failed banks.
The event which was chaired by the former Head of State, Chief Ernest Shonekan, the host Governor, Dr. Emmanuel Uduaghan, his Anambra state counterpart, Peter Obi, joined Albert Okumagba, Group Managing Director, BGL Plc, Lagos and Jean.Louis Ekra, President of Afreximbank, Cairo, Egypt as confirmed discussants.
He disclosed the CBN has to embark on the on-going banking reform to safe depositors and investors from being fragmented by these banks.
He said although financial crisis is an integral part of evey capitalist system; banks should stop preventing depositors and investors from what he described as Technical and Fundamental Analysis and Investors’ Sophistication.
According to him, “we have a banking system in the past that was exposed to the capital market but without guidelines and regulatory system on lending margin. In the stock market, what people think about is how it will go up. But this market, this casino, is what those entrusted with depositors money gamble with.
While he warned the banks to stop creating the impression that they have values when in the actual sense they are dying,
He said, “the stock market is a very funny casino. Don’t entrust your money with gamblers. CBN rules and regulations around the banks are uncompromiseable. We are not just doing the sanctioning thing, we are combing the banks for excellence.’’
He advocated a review of the Land Use Act to make the aspect of collateral for bank loans more credible, assuring that the prevailing situation where current and saving accounts being used by banks to service insurance businesses, construction of roads and bridges by through market bonds sold to governments would be stopped.
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