Regulatory Alerts2018-09-27 | BSD/DIR/GEN/LAB/11/019 /6Exposure Drfat- Guidance Notes on Supervisory Review Process
The Central Bank of Nigeria's Guidance Notes outline the supervisory review process for non-interest financial institutions, adopting a risk-based approach in line with Basel 2 Pillar 2. The notes cover internal capital adequacy assessment, supervisory review and evaluation, and regulatory reporting. NIFIs must identify and manage risks, assess capital adequacy, and maintain robust risk management and internal control systems. The CBN reviews NIFIs' ICAAPs and may require remedial actions. Corporate governance, risk management, and Shari'ah compliance are emphasized. Related-party transactions, securitization, and concentration risks are also addressed. Islamic window operations within conventional banks are subject to specific requirements and supervision.