A SENATOR CALLS ON CBN TO INITIATE DISCUSSIONS WITH THE NATIONAL ASSEMBLY AND OTHER STAKEHOLDERS REGARDING THE RECAPITALIZATION OF BANKS.
Tokunbo Abiru, the Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, has urged the Central Bank of Nigeria (CBN) to initiate discussions with the National Assembly and key stakeholders regarding the proposed recapitalization of banks in the country.
Abiru made this statement on Saturday during the committee’s retreat with the Nigeria Deposit Insurance Corporation (NDIC) in Lagos State.
He expressed, “It is evident that the financial sector needs continuous strengthening to effectively perform its role of intermediating between surplus and deficit units in the economy. I welcome the plan by the Central Bank of Nigeria to recapitalize the banks. In doing so, the CBN should engage all critical stakeholders, including the National Assembly. The country’s financial sector should be under constant scrutiny by regulators and subjected to effective oversight by the National Assembly for resilience and public confidence.”
Regarding the retreat’s purpose, Abiru explained, “The essence is for a better understanding and deepening of the role of the deposit insurance business led by the NDIC. The banks in Nigeria have shown resilience despite global and national challenges. Understanding the regulators’ role, especially with the CBN’s plan to recapitalize banks, is crucial for legislators.”
Supporting this perspective, Bello Hassan, the Managing Director/Chief Executive of NDIC, in his welcome address, emphasized the importance of a mutual working relationship between the legislature and the corporation.
He said, “The Deposit Insurance System is a crucial component of the financial safety net, fostering financial system stability. The NDIC’s effective discharge of its mandate has built public confidence in our banking system. A robust legal framework is essential for an effective Deposit Insurance System, emphasizing the legislature’s significance and the need for harmonious collaboration between the legislature and the corporation.
News source: Techeconomy
