and collateral registries should also help improve credit evaluation and lower the cost of repossession. this should make it easier to meet priority sector norms. the cost has been further reduced through the introduction of tradeable priority sector lending certificates, whereby the most efficient lenders can sell their over - performance, while the inefficient ones can compensate for underperformance by buying certificates. nevertheless, over time, differences should be reduced further. this is why, for example, the reserve bank has been reducing slr requirements steadily, and allowed over half of the slr holdings to meet the basel - mandated liquidity coverage ratio. but we are also trying to shape mandates to new technologies and approaches. for example, it is mandated that a quarter of a bank ’ s branches should be opened in underserved areas. but what exactly qualifies as a branch? could we accept alternative definitions of a branch so long as they meet the needs of the population for a regular outlet for banking business? of course, all villages would love to have a full service brick and mortar bank branch. however, if the cost is currently prohibitive, can we accept alternatives that do much of what is needed? an internal rbi committee is looking at these issues. in sum, mandates should increasingly be paid for, and are becoming easier to achieve as the institutional and technological underpinnings of financial services improve. as competition increases, however, the authorities should ask how long mandates should continue, and keep targeting them better towards the truly underserved. they should also withdraw any preferential treatment, to the extent feasible, at a commensurate pace. let me now turn to how banks respond to the emerging competitive challenges. i will talk specifically about public sector banks, which perhaps face the greatest challenges. challenges faced by public sector banks the most pressing task for public sector banks is to clean up their balance sheets, a process which is well under way and which i discussed earlier. a parallel task is to improve their governance and management. equally important is to fill out the ranks of middle management that have been thinned out by retirements, and to recruit talent with expertise in project evaluation, risk management, and it, including cyber security. ( i ) governance the bank board bureau ( bbb ), composed of eminent personalities with integrity and domain experience, has taken over part of the appointments process in public sector banks. there are two ways the government still plays a role. first, the

olayemi cardoso : press briefing - international monetary fund / world bank spring meetings remarks by mr olayemi cardoso, governor of the central bank of nigeria, at the press briefing to nigerian media at the international monetary fund / world bank spring meetings, washington dc, 20 april 2024. * * * thank you for the opportunity to address you today. it has indeed been a fruitful few days of engaging with our esteemed international policy counterparts and stakeholders from around the world, as well as nigeria's investors. we came here with a very clear agenda and have held highly significant, intentional meetings – each one with an objective to further support the stability and ultimate growth of the nigerian economy. besides our meetings with multilateral financial institutions, and foreign investor groups with a keen interest on developments in nigeria, including a critical gathering at the us chamber of commerce, we had very productive discussions with leading international money transfer operators ( imtos ), where we collectively committed to doubling remittance flows through formal channels into nigeria in the immediate short to medium term. this target is both ambitious and achievable, and we're wasting no time in setting up a collaborative task force, reporting to myself, to drive progress and address any bottlenecks that hinder flows through formal channels. in the six months since assuming the position of central bank governor, the challenges have been significant, from grappling with inflation to addressing volatility in the foreign exchange market. however, with relative stability now achieved, particularly in the fx market, we have transitioned from firefighting to strategic planning across key areas. these areas include improving the ease of doing business in nigeria, to consolidate and sustain the gains through an efficient and transparent market system and boosting financial and economic inclusion for small businesses and households – interrogating all potential ways to leverage smarter use of technology, and remote banking to reduce the cost of transactions and expand accessibility to the financial system. april saw the naira emerge as the best - performing currency globally, supported by bullish sentiment from leading international investment institutions. our fx market is experiencing robust activities, with turnover reaching levels not seen in over seven years. this liquidity boost instils confidence among investors, businesses, and other partners, ensuring fluidity in their interactions with nigeria's fx markets. however, we remain vigilant, recognizing the challenges that persist, such as elevated inflation driven by rising food prices, transportation costs, and energy expenses. we note that inflation