The Nigerian Central Bank (NCB) has joined the Central Bank of Sierra Leone (BSL) to monitor all those commercial banks with subsidiaries operating in other countries.
This was revealed in a press release issued by the Bank of Sierra Leone last Tuesday.
At a recent Committee meeting of all the Central Bank Governors in the West African Monetary Zone (WAMZ) it was agreed that they should organize joint supervision missions to monitor the performance of ‘cross border banks’ “exchange country specific experiences, identify common problems and implement collective solutions.”
Although the Commercial Banks are not registered as subsidiaries (they are whole entities according to BSL registration) yet for most of them, the majority shareholders or parent bodies are registered in another country. This makes them ‘cross border banks’ and in Sierra Leone, seven out of the thirteen commercial banks have their parent banks registered in Nigeria.
The Central bank of Nigeria has sent two three man led by Mr. Caleb Wakama and Mr. Chris Okoye respectively and they will be joined by the Director of banking Supervision at the bank of Sierra Leone to conduct the collaborative examination of Guaranty Trust Bank (SL) and Skye Bank (SL) both of which have their headquarters in Nigeria.
The exercise is expected to continue with all the other ‘cross border’ commercial banks.