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Regulators | CBN Governorship Papers

Next CBN Governor: An Economist or/and a Chartered Banker

Feb 02, 2014   •   by   •   Source: Proshare   •   eye-icon 5524 views

Sunday, February 02, 2014 2.03 PM / By Temitope Oshikoya**

                                 

The CBN, by statute, practice, and global standards, is responsible for:maintaining macroeconomic and monetary stability (price, interest rate and exchange rate stability); promoting financial stability, efficient financial instruments and financial markets, and sound banking and financial institutions;enhancing efficient currency andpayment system infrastructure that facilitates the flow of financial resources among various segments of the economy; facilitating economic growth and development that improves lives, jobs, and welfare of the people by serving as economic and financial adviser to the government.

  

The Next CBN Governor should, therefore, possess requisite expertise, experience, and exposure as an Economist and a Banker.

 

         The next CBN Governor should be a seasoned economist, with a PhD in Economics from a reputable university, and with evidence of intellectual scholarship, policy research, and publications on macroeconomics, monetary economics, the Nigerian Economy and development issues in leading economics journals, coupled with country economic strategy and policy experience. In essence, an economist of sound intellect, judgment, and evidence-based insights and thought leadership to consider the costs and benefits of alternative economic policies to promote monetary stability and macroeconomic growth.

 

              In addition to being a seasoned economist, the next CBN Governor should also be a chartered banker, with strong professional qualifications and certifications in banking (ACIB, FCIB), finance (MBA or CFA) and accounting (CPA, ACCA, CMA, or ICAN). The CBN Governor should have an understanding and experience of the microeconomics of banking, payments system, financial instruments, financial markets; and micro and macro-prudential regulation that ensure financial stability and payment system stability. Thus, an essential profile will be a chartered banker with strong knowledge of banking and finance, and strategic, management, and operational experience in banking and financial institutions (commercial banking, central banking, investment banking, and development banking).

 

                The next CBN Governor should have institutional leadership experience, with the discipline, maturity,  and tact to deal with high level government officials including the President, Vice President and Ministers, National Assembly; interact with high level officials of international organizations; manage the staff of central bank; and communicate with the banking and financial markets operators. This institutional leadership experience will help with forging consensus from among diverse perspectives.

 

There are global best practices that support this theme of a combination of economics expertise evident by a PhD in Economics and record of publications, hands-on banking and finance experience, and policy and institutional leadership exposure. Dr. Janet Yellen, The Chairman of the US Federal Reserve has a PhD in economics and record of research publications coupled with banking leadership experience as President of Federal Reserve Bank of San Francisco, and policy experience as chairman of Council of economic advisers. The Governor of Bank of England has a PhD in Economics, with a decade of leadership and operational experience at Goldman Sachs, an investment bank.

 

The Governor of the Bank of Canada has a PhD in Economics, with leadership experience in banking and served as President and CEO of Export Development of Canada. The Governor of India’s central bank has PhD in Finance, with his dissertation on ‘Essays on Banking’ and experience as Chief Economist of the IMF, an international organization. The Governor of Central Bank of Mexico has a PhD in Economics, with policy and leadership experience in central banking and in international organization. The Governor of Japan’s central bank is professor in the graduate school of economics and a former President of Asian Development Bank. The Governor of the Central Bank of Israel has a PhD in Economics with banking and financial experience at the Inter-American Development Bank, IMF, and Bank of Israel.

 

It is challenging to find people for the position of Central Bank Governor, and for that matter, Deputy Governors, and member of Monetary Policy Committee, with the rare combination of leadership and operational experience in banking and finance; country economic strategy and policy experience; international exposure, excellence in academic and thought leadership, evident by PhD in economics and publications’ record; while at the same time are professionally certified as banker and or accountant.

 

Although these requirements are a tall order, if the net is cast wider, it will be discovered that that there are a few Nigerians, inside and outside, that may possess this rare combination of high level institutional and policy interactions; operational and leadership experience in banking and finance; coupled with doctorate degree in economics, thought leadership evident by publication records, and professional certifications in banking, finance and or accounting. These potential candidates would have likely worked in academia, private sector, public sector, Nigeria, and internationally.

 

If the appointment is going to be based on merit, the next CBN Governor should possess economics thought leadership and expertise, hands-on banking leadership experience, and policy and institutional leadership exposure. The next CBN Governor should be both an Economist and a Banker; not either an Economist or a Banker!

 

**Mr. Temitope Oshikoya can be reached vide [email protected]

 

For additional information, click HERE

 

Other Articles/News on the Central Bank of Nigeria 2014 Decision:

1.    Dr Kingsley Moghalu, Deputy Governor Financial System Stability, Central Bank of Nigeria, the Nigerian economy

2.     Front Runners for CBN Post Emerge – Aganga, Mustapha and Aigboje in the mix

3.     Aig-Imoukhuede Exudes Confidence in becoming the Next Governor of Nigeria’s Central Bank?

4.     The Impact of the Global Financial Crisis on the Nigerian Economy

5.     What causes a currency crisis?

6.     The New Economy: Inflation vs Monetary Policies, Measuring CBN's Performance

7.     GDP and FDI: Measuring the Performance of the EMT and CBN

8.     Austerity vs. Stimulus: Way forward for Nigeria

9.     To be or Not to be - Pragmatism or Status Quo in Appointing New CBN Governor

10.  Impact of the Global Financial Crisis on the Nigerian Economy

11.  China: Economic Pragmatism at work, even with latest reforms

12.  Designing an Effective Monetary Policy for Nigeria: A Case for Dual Mandate

13.  Global Outlook: Choosing Central Bank Governors in a Changing World

14.  Globalization, Nigerian Economy and Management of Foreign Reserves and Sovereign Wealth Fund

15.  Role of Central Bank of Nigeria in the Management of Nigeria's Economy

16.  The Next CBN Governor Should Be Able to Create Jobs

17.  Expected Changes in CBN: Who Will Be Replaced or Returned?

18.  CBN Monetary Policy Committee: Beyond a pedestrian focus on personalities!

19.  Prologue: Choosing the Next CBN Governor: Whom Does the Cap Fit?     

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