Banks’ Directors Back CBN’s Action On First Bank

Directors of banks have thrown their weight behind the action
taken by Central Bank of Nigeria (CBN) to steer First Bank on
course.

The apex bank last week reversed the move by First Bank
directors to change the management without the approval of the
regulator.

The directors, under the aegies of Banks Directors Association
of Nigeria (BDAN), advised the directors of First Bank to comply
fully with the directives by the CBN.

Chairman of BDAN Mrs. Osaretin Demuren gave the position of the
association yesterday.

Mrs. Demuren, who is the chairman of the board of Guaranty Trust
Bank (GTB), spoke on the sidelines of BDAN’s 24th Annual General
Meeting (AGM) in Lagos.

She said: “The position of the association is that CBN is the
regulator, and has the spread sheet of First Bank. So, if CBN took
a decision, we just have to encourage the bank to rectify whatever
it was so that we have a better working environment. They should
listen to the CBN. We cannot challenge the CBN because it is the
regulator”.

She urged on bank directors to enhance their corporate
governance practices by ensuring stability and accountability in
the banking sector.

The BDAN President noted that it was important to also ensure
the emergence and appointment of directors in banks that are
properly vetted, with such roles filled by only qualified
candidates.

She said: “Corporate governance should be entrenched in bank
directors. Even when recruiting directors, you have to find out on
what basis since everyone is not corporate governance-
compliant.

On bank ownership in the country, she said: “We have gone beyond
banking where banks should be owned by individuals. Once that is
out of the way, then corporate governance can be entrenched. When
you have an individual, whether directly or indirectly behind a
bank, then it is left to the regulator to call that person to
order.”

The BDAN President’s tenure was extended by 90 days pending
election of a new President.

She said: ”I took over as the President of BDAN in October 2018,
at the 21st Annual General Meeting, and since assuming office, I
can confidently say that with the support of my colleagues, we have
been able to deliver on the mandate of the association by
increasing members’ participation. We have increased revenue as
evident in our financial statements in addition to improving the
quality of our programmes.”

“There is still more to be done notwithstanding especially with
regards to advocacy with the regulators. I am sure whoever takes
over as President will further deliver on our aspirations. I am
therefore informing this meeting that this is the last meeting I
will be acting in the capacity as President because my tenure as
Chairman of Guaranty Trust Bank has come to an end and we are in a
transition period.”

“In view of this, we will also have a transition period where I
will be speaking with my colleagues Chairmen of Banks on who will
be my successor. I hereby crave your indulgence as we go through
the transition period and assure you that members will be carried
along throughout the process,” she added.

Directors of banks have thrown their weight behind the action
taken by Central Bank of Nigeria (CBN) to steer First Bank on
course.

The apex bank last week reversed the move by First Bank
directors to change the management without the approval of the
regulator.

The directors, under the aegies of Banks Directors Association
of Nigeria (BDAN), advised the directors of First Bank to comply
fully with the directives by the CBN.

Chairman of BDAN Mrs. Osaretin Demuren gave the position of the
association yesterday.

Mrs. Demuren, who is the chairman of the board of Guaranty Trust
Bank (GTB), spoke on the sidelines of BDAN’s 24th Annual General
Meeting (AGM) in Lagos.

She said: “The position of the association is that CBN is the
regulator, and has the spread sheet of First Bank. So, if CBN took
a decision, we just have to encourage the bank to rectify whatever
it was so that we have a better working environment. They should
listen to the CBN. We cannot challenge the CBN because it is the
regulator”.

She urged on bank directors to enhance their corporate
governance practices by ensuring stability and accountability in
the banking sector.

The BDAN President noted that it was important to also ensure
the emergence and appointment of directors in banks that are
properly vetted, with such roles filled by only qualified
candidates.

She said: “Corporate governance should be entrenched in bank
directors. Even when recruiting directors, you have to find out on
what basis since everyone is not corporate governance-
compliant.

On bank ownership in the country, she said: “We have gone beyond
banking where banks should be owned by individuals. Once that is
out of the way, then corporate governance can be entrenched. When
you have an individual, whether directly or indirectly behind a
bank, then it is left to the regulator to call that person to
order.”

The BDAN President’s tenure was extended by 90 days pending
election of a new President.

She said: ”I took over as the President of BDAN in October 2018,
at the 21st Annual General Meeting, and since assuming office, I
can confidently say that with the support of my colleagues, we have
been able to deliver on the mandate of the association by
increasing members’ participation. We have increased revenue as
evident in our financial statements in addition to improving the
quality of our programmes.”

“There is still more to be done notwithstanding especially with
regards to advocacy with the regulators. I am sure whoever takes
over as President will further deliver on our aspirations. I am
therefore informing this meeting that this is the last meeting I
will be acting in the capacity as President because my tenure as
Chairman of Guaranty Trust Bank has come to an end and we are in a
transition period.”

“In view of this, we will also have a transition period where I
will be speaking with my colleagues Chairmen of Banks on who will
be my successor. I hereby crave your indulgence as we go through
the transition period and assure you that members will be carried
along throughout the process,” she added.