Firstly, in recognition of the strategic importance of the banking industry and the need for financial system stability which is necessary for macro-economic stability, CBN emphasizes risk-based supervision with zero tolerance on factors that could undermine the health of the financial system.
On the assumption of office, CBN governor, Godwin Emefiele promised to create a “people-centred’ central bank and emphasized development financing whereby CBN would act as a financial catalyst by targeting predetermined sectors to create jobs on a mass scale and significantly reduce import bills. According to Emefiele, “the CBN would deploy developmental initiatives to create an enabling environment with appropriate incentives to empower innovative entrepreneurs to drive growth and development. It is important to stress here that CBN would not be targeting individual companies but rather specific sectors”.
Between the options of reflating the economy with an expansionary monetary policy and controlling inflation which if left unchecked could further destabilize the economy, the Bank, against critical opinions opted to maintain a tight monetary policy as a result of which inflation rate dropped continuously and standing presently at 11.30 per cent.