Reps accuse CBN over protection of commercial banks

The House of Representatives committee on Banking and Currency, has accused the Central Bank of Nigeria (CBN), of giving undue protection the commercial banks at the expense of the nation.

Chairman of the committee, Hon. Jones Onyereri, who made the remarks during an oversight function visit to CBN Headquarters in Abuja, expressed dismay at the frustrations being experienced by the private sector and small scale businesses across the country.
He expressed concerns over the complacency of the financial regulators to effect the implementation of various policies that would aid the growth of the real sector of the nation’s economy.
The lawmakers specifically, chided the Bankers Committee led by the CBN Governor, for failing to ensure that deposit banks complied strictly with the Monetary Policy Rate (MPR), by reducing the interest rates, despite various interventions by the apex bank.
Onyereri also frowned at the flagrant disregard for the provisions in the Banking and other Financial Institutions Act (BOFIA), which vehemently opposed the giving out of bail-out intervention fund to deposit banks, from the public treasury.
The committee also expressed disappointment with the failure of the CBN management to provide various information relating to the MPR policies especially on interest rates, operational modalities, performance level, stamp duty, evidence of specific contracts awarded over the past two years, among others.