Bank reports to the CBN and investors often were inaccurate, incomplete and late, depriving the CBN of the right information to effectively supervise the industry and depriving investors of information required to make informed investment decisions. The CBN did not act to enforce the data quality in banks to ensure their reports were accurate.
As a result, it is often necessary to tailor regulations to the institution. Applying a one-size-fits-all approach to regulations may produce a small benefit at a disproportionately large compliance cost to smaller institutions. Of particular concern in this regard is the need to ensure our regulations are appropriately calibrated for smaller institutions.