Managing Corporate and Stakeholder Relationships: A Critical Analysis and Synthesis of Stakeholder Issues in the Implementation of a Common Financial Year End for Banks in Nigeria
24 Pages Posted: 21 Nov 2009
Date Written: May 22, 2009
The Central Bank of Nigeria (CBN), by virtue of the CBN Act of 1958 is empowered by law to supervise banks operating in Nigeria. They are also responsible for promoting monetary stability and a sound financial structure in Nigeria. Nigeria has 24 banks with different financial year end dates. In the exercise of its supervisory functions, the Central Bank of Nigeria decided that banks in Nigeria should have a common year end as one of the means to entrench corporate governance in those banks. In this paper, the author views this decision as a major strategic event with a wide range of stakeholder issues that require relationship management. The work will review the decision of the Central Bank of Nigeria to implement a common accounting year end for banks in Nigeria, the stakeholder issues involved and their management as well as its impact on the stakeholders and the financial system. This paper is arranged to provide introductory and background information on the case, a review of relevant literature, a synthesis and analysis of the case and key stakeholder issues and concludes by noting that the implementation of the policy decision will either make or mar the banks/financial system in Nigeria.
Keywords: financial system, common year end, banks, central bank of Nigeria, stakeholders, stakeholder issues, corporate governance
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