The Central Bank of Liberia and the Central Bank of Nigeria have signed a Memorandum of Understanding (MOU) covering the sharing of supervisory information and enhanced co-operation in the area of Banking Supervision. The MOU was signed at the Robert L. Johnson Resort on the Robertsfield Highway during a one-day working visit by Nigerian Central Bank Governor Sanusi Lamido Aminu Sanusi. The MOU which was initiated by the Central Bank of Liberia under the leadership of Dr. J. Mills Jones, is the outcome of extensive negotiations between b the staff of both institutions. According to the MOU, the two institutions have agreed to exchange information regarding new application for the establishment of cross-border branches, subsidiaries and representative offices of banking organizations wishing to operate in either country.

The MOU further stated that both financial institutions will carry out their respective duties and responsibilities with a view to ensuring that the operations of the cross-border branches, representative offices and subsidiaries of banking organizations under their respective jurisdictions are prudently conducted. The two institutions further agreed to ensure that their respective ongoing supervision of banking organizations effectively cover cross-border banking establishment on a consolidated basis and assist each other in performing such functions and support each other in the building of supervisory skills. The MOU also calls for collaboration between the two institutions in crisis management. According to financial experts, the signing of the MOU with the CBN is one of a number of actions taken by the CBL in recent times to enhance its supervisory oversight and to help mitigate potential contagion effects that may arise from cross-border banking operations.