Intervention will Restore Investors’ Confidence.
The chief executive of Oceanic Bank International plc, Cecilia Ibru has lauded Federal Government’s intervention in the stock market crisis, saying such move will boost investors’ confidence in the capital market.
She noted that the fundamentals for restoring confidence in the market are strong and that investors’ hope of reaping bountiful returns on their investment remained very high. Ibru made the contribution at the third This Day Newspaper Town Hall meeting on "Managing in an Uncertain Market" held in Abuja, at the weekend.
Debunking insinuations that the economy may bow to the global financial downturns, she said potentials for growth in the nation’s economy remained very high and that the measures already put in place will effectively check any negative effect the global downturns may have on the economy.
The Oceanic Bank chief executive who delivered a paper on "Staying Calm in Times of Global Financial Crisis (Confidence Powered by Strong Fundamentals", advised that the Central Bank of Nigeria and other regulators in the financial services sector to step up regulatory mechanisms to ensure close monitoring of operators’ activities.
The Oceanic Bank chief executive said once the real sector of the economy comes live with good funding from the financial institutions and all the segments of the economy are making profits, then investors’ confidence will be restored.
She however noted that the financial crisis is a potential lesson to Nigeria and other African countries because irrespective of the nation’s strong fundamentals, there is need for the nation to learn from the crisis by setting structures that will safeguard the nation’s financial services sector.
According to her, the regulators should invest in human capital development to equip its workforce with updated knowledge on global finance trends as well as enter collaborative arrangements with regional and global counterparts to enhance knowledge-sharing and efficiency.
Also the regulators should endeavor to upgrade information and communication technology platforms to enhance seamless interactions with operators, and engage operators in periodic reviews on the state-of-the-sector and carry operators along in the planning of government policies.
"This should be in force in the selection of Boards, consultants, employees, and decisions on operational guides for all operators. "In periods like these, policymakers, regulators and operators need to continually build confidence in the economy by taking decisive steps at addressing perceptions, misconceptions and other issues that may arise from the financial meltdown".