SENATOR URGES CBN TO ENGAGE N’ASSEMBLY AND OTHERS ON BANKS’ RECAPITALIZATION

Tokunbo Abiru, the chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, urged the Central Bank of Nigeria (CBN) to involve the National Assembly and key stakeholders in its proposed banks’ recapitalization during a retreat with the Nigeria Deposit Insurance Corporation in Lagos State on Saturday.

Abiru emphasized the need to continuously strengthen the financial sector to fulfill its role of intermediating between surplus and deficit units in the economy. He welcomed the CBN’s plan to recapitalize banks but stressed the importance of engaging critical stakeholders, including the National Assembly, in the process.

Discussing the purpose of the retreat, Abiru highlighted the importance of a better understanding of the deposit insurance business led by the NDIC. He acknowledged the resilience of Nigerian banks despite global and national challenges, such as currency depreciation. Abiru noted that legislators must comprehend the regulators’ role, especially with the upcoming recapitalization by the CBN.

Bello Hassan, the Managing Director/Chief Executive of NDIC, supported Abiru’s perspective, emphasizing the retreat’s role in fostering a mutual working relationship between the legislature and the corporation. Hassan underscored the significance of the Deposit Insurance System in ensuring financial system stability and building public confidence in the banking system.

Hassan emphasized the importance of a robust legal framework for an effective Deposit Insurance System and the necessity for the legislature to work harmoniously with the Corporation. He highlighted the NDIC’s mandate to protect depositors and contribute to the stability of the financial system.

The NDIC, as an agency, plays a crucial role in incentivizing sound risk management in the Nigerian banking system. It also contributes to overall financial system stability.

Reporter: Tobi Adetunji

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