The CBN was not organised to monitor adequately and analyse the macroeconomic issues and systems risks inherent in the financial sector. There is no overarching architecture to manage the risks in the banking system, linking economic indicators to macro-prudential guidelines and to individual bank prudential guidelines.
With the financing requirement of the current account deficit being modest, the rising profile of net capital flows has resulted in steady accretions to the foreign exchange reserves, which have more than doubled from $ 76 billion at the end of March 2003 to around $ 200 billion at the end March 2007.