Uniform Accounting System Among Banks
The only way offshore banking would be effective in the country is for banks to have consolidated accounting and reporting system.The Deputy Governor Central Bank of Nigeria, (CBN), Mr Ernest Ebi made this remark in Lagos at a two -day retreat and that the major challenges of offshore subsidiaries of the nation's banks was the minimum standard for the supervision of international banking groups and their cross border establishments.
He added that,apart from having a consolidated accounting and reporting system;there is need to establish Financial Action Task Force (FATF) to help protect the financial system from criminal use for the laundering of the proceeds of drug related and other serious crimes.He however, pointed out that 10 out of 24 banks operating in the country have about 46 branches outside the shores of the nation's banking system.
He stated that offshore banking offered a lot of legal and financial benefits to the depositors and the banks.Some of the benefits according to him, include favourable regulatory and tax environment; expansion of services; infrastructure support; greater returns on investment; security and privacy of investment among others.
He further pointed out that the financial system strategy (FSS) 2020 was designed to make Nigeria Africa's financial hub, adding that the financial regulators are determined to implement a series of initiatives to improve the regulatory framework and infrastructure.He said that with FSS 2020 new areas of services would be identified and developed, stressing that this would in turn attract more banks to locate in Nigeria as well as help existing ones to expand their operations.
He added that,apart from having a consolidated accounting and reporting system;there is need to establish Financial Action Task Force (FATF) to help protect the financial system from criminal use for the laundering of the proceeds of drug related and other serious crimes.He however, pointed out that 10 out of 24 banks operating in the country have about 46 branches outside the shores of the nation's banking system.
He stated that offshore banking offered a lot of legal and financial benefits to the depositors and the banks.Some of the benefits according to him, include favourable regulatory and tax environment; expansion of services; infrastructure support; greater returns on investment; security and privacy of investment among others.
He further pointed out that the financial system strategy (FSS) 2020 was designed to make Nigeria Africa's financial hub, adding that the financial regulators are determined to implement a series of initiatives to improve the regulatory framework and infrastructure.He said that with FSS 2020 new areas of services would be identified and developed, stressing that this would in turn attract more banks to locate in Nigeria as well as help existing ones to expand their operations.
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