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Bullion

Keywords

Banking Supervision, Banking distress, Financial sector surveillance

Abstract

A country's financial sector is the major channel through which funds are mobilized for borrowing and lending transactions. A poorly regulated or managed financial sector or one with insufficient capital for the risks it takes, can increase a country's vulnerability to financial crises. This paper highlights the importance of financial sector regulation and supervision, techniques of supervision, symptoms and causes of distress, measures put in place by the regulatory/supervisory authorities to guard against future systematic distress and the role of multilateral agencies. However, the study concluded that there is no doubt that good corporate governance is a major factor in financial sector stability. Both at the micro (individual) and macro (sector wide) levels, if the institutions comply with regulations and ensure that all organizational activities are carried properly, the system will remain solid. 49. The process however, starts from the quality and timeliness of information provided by institutions for their various stakeholders. Whether the stakeholders are internal or external, the same results obtain when the information quality and timeliness is right or poor. lf it is the former, then the stakeholders can make the right decisions and responses to ensure the health of the institution as well as that of the entire financial sector.

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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