Why the face of reform is slow

Central Bank of Nigeria's Deputy Governor Kingsley Moghalu talks about "The Bankers' New Clothes."

The book i have chosen is called the bankers new clothes, it's a book writen by Anat Admati and Martin Hellwig, and it discusses banking reform, you know after the global financial crisis, and examines why in their view bankers are resistant strong regulatory reform.

The bad news is that we have a very grim assessment of what's going on with financial reform as with banking system.

We haven't cleaned up the mess and that we may still have some time bombs waiting to go off.

They just break it down and say beyond all this the real problem is banking rests too much on leverage which is to say borrowed money, other people's money that's what driving banking and that's a very risky proposition to want to make profit on the basis of borrowed money, and there should be more equity in banks, the share holders should put more of their money in banks.

Over the last year, the financial industry has repeatedly tried to end this reform with hordes of lobbyists and millions of dollars in debts, and when they couldn't kill it, they tried to water it down with special interest loopholes and carve out saying that undermining real change.

The authors here say A major reason for the success of banking lobbying is that banking has a certain mystique, there is a pervasive myth that banking and bankers are special and different from all other companies and industries in the economy. Anyone who questions the mystique and the claims that are made is at risk of being declared incompetence to participate under this caution, when i make a lot of policy speeches, and i refer to this type of statements and arguments to backup you know what's our perspective i'm trying to share or just to throw lights on what's happening all over the world as we in the developing world trying to get out banks to come through agents of development and not just you know making a lot of money for people who are already wealthy. It's * my own perspectives because i'm a banking regulator myself and so the written in this book is interesting to me to see how these problems are universal across developed countries and in emerging markets, i'm an old fashioned reader, i love the book, the feel of the book, the crack of the paper excites me, and i just also have a very deep respect for the concept of knowledge.