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Bullion

Keywords

Bank examination, Financial sector surveillance

Abstract

The financial intermediation role of banks is very crucial to the efficiency and growth of every economy. The safety, stability and soundness of the banking system is therefore paramount to the regulatory authority of the financial system of any nation. Between 1929 and 1951. The Nigerian Banking system experienced a few banking crises due mainly to the absence of legal and regulatory framework for the operation of banking business in Nigeria. The bank examination function was established by the Central Bank of Nigeria, to monitor banks compliance with the regulatory and prudential requirements governing the conduct of banking business to ensure the overall safety, stability and soundness of the financial system. This paper examines the objectives of bank examination, the functions of bank examination department, types /areas of examination, examiners report and the experience so far on bank examination. The study concludes that, the tne concept of Bank Examination is premised on the imperative of ensuring that banks operate according to laid down rules encapsulated in frameworks that are intended to guarantee the overall safety, stability and soundness of the Nigerian Banking System. The regulatory authority's conscious effort to foist a robust supervisory apparatus had ensured a fairly stable financial system, notwithstanding the isolated incidence of bank failures, which, in any case, is not peculiar to Nigeria.

Author Bio

The author is a staff of the Central Bank of Nigeria.

Publication Title

CBN Bullion

Issue

1

Volume

28

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