Non-interest banking to enhance financial inclusion - Sanusi

The Governor,Central Bank ofNigeria, Malam Sanusi Lamido Sanusi has said the introduction of Non-Interest Banking (NIB) in the country is to attract those currently outside the banking system.The CBN Governor, who was speaking on the theme for this year's seminar, 'Non-Interest Banking, Issues, Challenges and Prospects', in Yola, at the three-day seminar organised by the CBN for business editors and correspondents, re-affirmed the apex bank's commitment to the development of a conducive and inclusive financial system that is safe and sound, adding that Islamic financial system, on a global scale has witnessed a progressive evolution over the last four decades to become dynamic and competitive for financial intermediation within the global financial system.He blamed the ineffective regulation of the NIB in the country on dearth of knowledge, skill, and technical capacity to regulate and supervise such banks, stating that lack of Sharia-compliant liquidity management instruments, absence of which permits the investment of excess liquidity in the interest-bearing instruments and violates the tenets of Islamic commercial jurisprudence.The Governor, who was represented by a board member of the CBN, Malam Dahiru Mohammad, said that the absence of Islamic insurance to protect investments of the Islamic banks against unforeseen hazards could impair the growth of the industry, adding that lack of robust and comprehensive legal guideline, especially at the level of conflict adjudication involving financial contracts, product, among others hindered the efficient regulation of non interest banking in the country.He stated that the non interest banking had recorded a dramatic growth, rising to 435 institutions operating in 75 countries around the world, including financial hubs such as London, New York, among others, stressing that the apex bank was committed to seeing its introduction in the country.
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