In view of these changes, banks are expected to imbibe best-practices, corporate governance, improve on self-regulation, enhance the capital base, institute IT-driven culture, seek to be competitive in today’s globalizing world, and most importantly conform to all regulatory and legal requirements of the Bank and Other Financial Institution Act (BOFIA 1991) as they relate to financial statement reporting.Diversification of the productive base of the economy remains a fundamental challenge of economic management, and banks will increasingly be challenged to become more innovative in their intermediation function, and especially to increase financing to the productive sectors.Part one, section 3 (Books of Account) shall provide these details as follows: Section 3: BOOKS OF ACCOUNT 1.
(2) Every bank shall submit such other information, documents, statistics or returns as the Bank may deem necessary for the proper understanding of the statements supplied under subsection (1) of this section.
(3) Any bank which fails to comply with any of the requirements of subsection (1) or (2) of this section is, in respect of each such failure, guilty of an offence under this Decree and liable on conviction to a fine of N5,000 for each day during which the offence continues. (1) The statements and information submitted by each bank under section 25 of this Decree shall be regarded a confidential: (2) Notwithstanding anything in this section, the Bank may prepare and publish consolidated statements aggregating the statements furnished under section 25 of this Decree for each category of banks. (1) Subject to the prior approval in writing of the Bank, a bank shall not later than 4 months after the end of its financial year- (a) Cause to be published in a daily newspaper printed in and circulating in Nigeria and approved by the Bank; (b) Exhibit in a conspicuous position in each of its offices and branches in Nigeria; and (c) Forward to the Bank, copies of the bank’s balance sheet and profit and loss account duly signed and containing the full and correct names of the directors of the bank.
At the end of the paper, the reader and examiner will be convinced that these provisions have been logically laid out as succinctly as possible to serve the purpose intended.
LITERATURE REVIEW The Act was promulgated in 1991, but then known as Banks and Other Financial Institutions Decree (BOFID), with specific provisions under the following main parts and sections: PART ONE PART TWO: Other Financial Institutions PART THREE: Miscellaneous and Supplementary PROVISIONS OF THE ACT ON LEGAL AND REGULATORY FRAMEWORK ON FINANICIAL STATEMENT The focus here shall be the legal and regulatory requirements as it relate to financial statements of banks and other financial institutions.
The regulatory authorities, on their part, would further streamline the regulatory framework and strengthen the supervisory capacity to ensure a sound and efficient system.
STATEMENT OF PROBLEMS The focal point is centred on providing the framework as stipulated by the Bank and Other Financial Institution Act (BOFIA) on the legal and regulatory requirements for the banking industry.
(4) The officers may be designated examiners or have such other titles as the Governor may specify.
(5) For the purpose of this section, references to examiners are references to the Director of Banking Supervision and any officer of the Bank appointed pursuant to subsection (3) of this section.
(5) Every auditor of a bank shall have a right of access at all times to the books, accounts and vouchers of the bank and shall be entitled to require from directors, managers and officers of the bank such information and explanation as he thinks necessary for the performance of his duties under this Decree.
(6) The report of the approved auditor shall be read together with the report of the board of directors at the annual general meeting of the shareholders of the bank and two copies of each report together with the auditor’s analysis of bad and doubtful advances in a form specified, from time to time, by the Bank shall be sent to the Bank.
The issues to be treated will encompass enumeration of the various requirements of the Act and the challenges of compliance on the part of the banks.