Buy it now. Add to basket. Be the first to write a review About this product. All listings for this product Buy it now Buy it now. Any condition Any condition. About this product Product Information Now that the Financial Services and Markets Act has had a chance to bed itself down and the Financial Services Authority FSA is developing its new regulatory toolkit and modus operandi, financial regulation has moved on in interesting directions.
Additional Product Features Author s. Newcastle , LL. Yale Reader in Financial Regulation, University of Newcastle upon Tyne and Solicitor England and Wales has also taught at the Universities of London, Dundee, and Strathclyde and qualified as a solicitor with a leading City of London practice for whom she subsequently worked as a consultant. In returned to practice full-time doing advisory work relating to financial regulation at a leading Edinburgh law firm. She has had extensive experience in training and consultancy work in financial services law and regulation both for law firms and for industry and has published widely in academic and industry journals on financial services law and company law.
Qualified as a barrister and solicitor in Australia she practiced law and taught in Australia before moving to Scotland in the mid s where she has since taught. She was formerly a Council member of the Scottish Consumer Council and is currently the Council Moderator of a co-operative lending society based in the north of England that aims to reduce poverty in the world, by providing fair and just financial services.
Show more Show less. No ratings or reviews yet. Be the first to write a review. Best-selling in Non Fiction See all. The Secret by Rhonda Byrne Hardback, These processes define the parameters within which banks should operate and subjects them to certain requirements, guidelines and restrictions aimed at promoting market transparency between banking institutions and their customers.
Implementing Financial Regulation: Theory and Practice - PDF Free Download
The banking sector occupies a vital position in the Nigerian economy and therefore subjects itself to constant reform, to enable it to function efficiently. The reforms have been directed principally towards financial intermediation and financial stability, to inspire confidence in the system. The overall impact of the banking system reforms in Nigeria seems to have had two dimensions; on the one hand it has favoured economic growth, as it has generated more employment opportunities and provided abundant resources for industrialisation; on the other, it has increased the wealth of shareholders and directors and narrowed the prospects for inclusive national growth.
This chapter seeks to give an overview of: the current structure of the Nigerian Banking industry; the regulatory bodies and key legislation overseeing this industry; the proposed banking regulatory reforms sought to be adopted; and an insight into the ethics, best practices and related issues concerning overall governance in the Nigerian banking and financial sector. The CBN is responsible for the overall supervision of banking policies and consumer protection in the banking industry.
SERVICOM is an institutional mechanism conceived to fight service failure by ensuring that organs of government in Nigeria deliver to citizens and other residents in the country the services they are entitled to. The CBN is the apex regulatory and supervisory body for the Nigerian banking industry. However, there exists other legislation that assists with the regulation of banking operations in Nigeria. These include:.
Though there are no specific roles played by supra-national regulatory bodies in Nigeria, the CBN has on behalf of the country, signed several treaties and agreements with friendly neighbouring nations; seeking to partner with each other in the harmonisation of their monetary and fiscal policies as well as modelling a cause that could lead to the creation of an ECOWAS Single currency. To preclude any aberrations in banking activities, notable restrictions have been imposed on Nigerian banks. These restrictions have led to the divestiture of non-banking activities of banks, and further reconstitution of banks into holding companies that own separate banking and non-banking subsidiaries.
This initiative aims to allow banks with the proposed maximum capital base to operate internationally, while other national banks whose capital falls below the threshold would be confined to operating nationally. The CBN plans to prescribe separate minimum share capital requirements for each category of banks; this seems to be a reversal of the and reforms in the banking sector and is meant to promote growth in the Nigerian banking industry.
Since the financial crisis, there is an emphasis on due diligence with respect to loan processing, fee recognition and service charges to customers. Equally, banks have been mandated to report performing and non-performing loans, and treasury trades activity with respect to fixed income and forex. The Nigeria Deposit Insurance Corporation NDIC is empowered to provide financial and technical assistance to failing or distressed banks in the interest of depositors.
Types of failure-resolution mechanisms the Corporation has implemented include;. The rationale behind establishing AMCON was to achieve a resolution of the banking crisis with minimal impact on depositors, other creditors of the banks, and taxpayers. AMCON is used as a vehicle to free the banks from the weight of their non-performing assets and accelerate the resolution process in the banking industry.
In Nigeria, parties trading in derivatives must properly document their transactions and state the rights and obligations of all parties to the transactions. The Guidelines regulate the activities of authorised dealers of foreign exchange i. The guidelines would regulate the activities of trading members and other market participants in the Exchange Traded Derivative markets. The NSE and the Nasdaq in July also announced the launch of a new market surveillance platform which processes real-time market information to detect anomalies.
Liquidity regulation and monetary policy implementation: from theory to practice
Although there is no specific or single legislation regulating fintech businesses in Nigeria and no regulation exists for crowdfunding, the CBN has shown significant interest in promoting and regulating fintech in Nigeria. The CBN, in conjunction with NDIC, has set up a committee to create guidelines and policies for technology and technological developments. SEC has also indicated interest in regulating crowdfunding in Nigeria. The most prevalent fintech businesses in Nigeria are mobile payment, mobile lending and personal finance.
Regulations and regulators for fintech businesses differ and depend on the type of business — a list of the regulations are outlined below:. Additionally, all marketplace lenders must register as money lenders in accordance with the Money Lender Laws of the state they operate in. The Code of Corporate Governance for Banks and Discount Houses categorically provides that the board of directors of a bank and its management are accountable and responsible for the performance and affairs of the bank, in line with the provisions of the Companies and Allied Matters Act CAMA The Governance Code states that the board shall be made up of qualified persons of proven integrity who shall be knowledgeable in business and financial matters and who shall be in conformity with the CBN Guidelines on Fit and Proper Persons Regime.
- Download Product Flyer!
- Implementing Financial Regulation: Theory and Practice — University of Strathclyde.
- British Medicine in an Age of Reform (Wellcome Institute Series in the History of Medicine)!
- Expert Oracle Application Express!
- Implementing Financial Regulation Theory And Practice The Wiley Finance Series.
- The Growing Importance of Risk in Regulation - Munich Personal RePEc Archive?
The guidelines provide the qualification criteria for the appointment of a person to the management team of a bank. The Code, on the other hand, further states that there shall be a minimum number of five and maximum number of 20 directors on the board. The board shall consist of executive, non-executive directors and independent directors, with the number of non-executive directors exceeding the executive directors.
In a bid to ensure stability and the introduction of new ideas, the Code limits the tenure of a non-executive director to a maximum of three 3 terms of four 4 years.
The guidelines prescribe the term of an independent director to a maximum of two terms of four years each, and encourage the banks to have a clear succession plan for their executive directors. In determining the remuneration to be paid to directors, the Code states that particular attention shall be paid to ensure that banks align the executive and board remuneration with the long-term interests of the bank and its shareholders. This task is made easier when the bank has a designated unit or department solely focused on compliance.
In a bid to combat the laundering of proceeds of crime or other illegal acts, Section 9 1 of the Money Laundering Prohibition Act mandates every financial institution and designated non-financial institution to assign an officer of the company who is at management level at its head office and all its branches, who shall be the compliance officer.
In a bid to lessen the burden on banks and make compliance with this directive easier, the CBN approved the establishment of zonal compliance officers for banks who — at the minimum — must be at the same level with the management of the zone where they work; that is to say, there is no need to have compliance officers for every bank branch.
' + regionname + '
CAMA mandates every public company Deposit Money Banks are required to be public limited liability companies to have an Audit Committee statutory audit committee in addition to other relevant committees. The Code equally directs every board to have the following committees which shall be headed by a non-executive director: Risk Management Committee; Audit Committee; Board Governance Committee; Nominations Committee. The Code of Corporate Governance for public companies requires all public companies to have an internal audit function. There is no local regulation laid down providing for the segregation of staff used for front office trading activities from staff used for middle and back office activities but banks have, as a matter of internal operational risk-management policy, set down various rules guiding the segregation of staff used for front office trading activities from staff used for middle and back office administration activities.
The extent to which banks outsource their internal functions varies.
Nevertheless, the following internal audit functions are normally outsourced by Nigerian banks:. A number of the Guidance Notes and calculations of regulatory capital are periodically issued by CBN, which spells out capital requirements for financial institutions. The Bank regularisation has increased the capital requirements for micro-finance banks in the country, in a bid to tackle the challenge of inadequate capital base in the sub-sector.
The non-operating HoldCo is now expected to hold an equity investment in banks and non-core banking businesses in a subsidiary arrangement. The only banks permitted to carry on business in Nigeria under the Circular are commercial banks and specialised banks.
The commercial banks, consisting of regional, national and international banks, operate under a monoline banking licence, whilst non-interest banks, micro-finance banks and primary mortgage institutions operate under a specialised banking licence. Following this distinction of banks and their licences, the CBN increased the bank capital requirements for each category of bank:. The Regulation also increased the frequency and intensity of on-site and off-site supervision of DSIBs, and mandates quarterly disclosures of their financial condition and risk-management activities to the CBN.
The Guidance Notes on the Calculation of Regulatory Capital lay down the new supervisory regulations for assessing the capital adequacy levels of banks and banking groups.