Sudan Backs Central Bank of Nigeria On Non-Interest Banking

The monetary authority in Sudan has expressed its readiness to supportthe Central Bank of Nigeria (CBN) in implementing non- interest banking in the country.A statement by the CBN and signed by its Head of Corporate Communications, Mr Mohammed Abdulahi, stated that the support, which isfrom the Central Bank of Sudan (CBOS) would be through experience sharing and capacity building.

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According to the statement, a CBN delegation led by the CBN Governor, Sanusi Lamido Sanusi , had visited the CBOS where the CBN Governor intimated officials of the CBOS on the on-going efforts to develop a regulatory and supervisory framework for non-interest banking inNigeria. The Advisor to the CBOS Governor on Non-interest Banking, Dr. Ahmad Ali Abdullah, assured the CBN of the readiness of the CBOS to support CBN in the implementation efforts.

Non-interest banking is provided for in Nigeria in Sections 9, 23 and52 of the Banks and other Financial Institution Act 1991 as amended. The visit to the CBOS coincided with the participation of the CBN delegation to the 16th Meeting of the Council of Islamic Financial Services Board (IFSB) in Khartoum, Sudan, this month. That was thesecond meeting attended by Nigeria since the CBN became a full member of the Council in January 2009.

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The meeting was preceded by an international conference with the themes, the Changing Landscape ofIslamic Finance – Imminent Challenges and Future Directions andDeveloping Capacity Building to Enhance Financial Stability in theIslamic Financial Services Industry.

According to the CBN, the Council deliberated on several issuesincluding strengthening of Islamic financial system and approved inprinciple to establish an inter-governmental special purpose entity tohelp in building liquidity management infrastructure at both domesticand international levels.

“This is to be achieved by facilitating cross-border liquiditymanagement among Non-interest financial institutions through theacquisition and maintenance of global pool of sovereign assets,” CBN said.According to the Council, said the Nigerian apex bank, such sovereignassets must be suitable for use as underlying asset on which it wouldbenchmark the issuance of highly rated Islamic bonds to be tradedglobally.

“Other areas which the council deliberated and agreed upon include theissue of capacity building among the operators and regulatoryauthorities with a view to strengthening their operations and ensuringefficient service delivery in the industry.The CBN delegation to Sudan which comprised the Governor, MallamSanusi Lamido Sanusi; Deputy Governor, Financial System Stability, Dr.Kingsley Chiedu Moghalu; Director, Financial Policy and RegulationDepartment, Mr. ChrisChukwu and others returned to the country last week.

source : allafrica

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