Central Bank of Nigeria (CBN) has said that the adoption of International Financial Reporting Standard and implementation of Basel framework will impact positively on the safety, soundness and stability of the financial system.
The Deputy Governor, Financial System Stability (FSS), Dr. Kingsley Moghalu, who made this remark in Enugu at the conference organised by the CBN for its examiners, said that high quality reporting was a key factor in creating healthy and sound financial system.
Moghalu stated that acceptance of IFRS and implementation of Basel frameworks would have positive effects on the safety, soundness and stability of the financial system needed to propel the economy into the league of the top 20 world economies by year 2020.
He said that the IFRS, being a global benchmark for financial reporting, was aimed at ensuring transparency in reporting account of entities thereby providing adequate and robust information to investors and other stakeholders.
Reviewing the progress of the banking sector, he pointed out that the implementation of Basel II and Basel III as well as IFRS were important component reforms.
He further said that the primary emphasis of the new accord Basel (II) was on improving the measurement of risks through developing efficient and comprehensive internal systems for assessment and management of risks in banks.
Earlier in his address, the Acting Director of Banking Supervision Department, Mr Joseph Ajewole, said that the apex bank was already implementing key features of Basel II accord “through deepening of risk management in the deposit money banks and supervisory frameworks and ensuring that banks have adequate capital in the right volume and quality commensurate with the risks inherent in their activities.
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