Reps c’ttee seeks establishment of Financial Services Commission

The House of Representatives Committee on Banking and Currency has stressed the need for the establishment of a financial services commission that will synchronize the activites of the monetary and fiscal authorities in the country for the growth of the nation.

Speaking during a visit to the Central Bank of Nigeria (CBN) as part of the committee’s over sight function, Chairman of the House of Representatives Committee of Banking and Currency, James Onyereri, stressed the need for the CBN and the Minstry of Finance to work together.

“If we work on the monetary policy without an agreeing part on the fiscal side, then it becomes an issue. For us as a committee we are wondering is it not necessary for us to set up a financial services commission where we will have monetary and fiscal authorities converge” he stated.

On the rising non performing loans in the Nigerian banking industry, Onyereri stated that the committee is worried about the rising NPLs, calling on the apex bank to rise to its regulatory role in addressing the issue.

Noting that a substantial part of the NPLs had been insider abuse within the financial system, he called on the CBN to weld the big stick against the culprits as a deterrent to others in the system, urging the apex regulator to improve supervision to curb insider abuse.

He however called for increased lending to the real sector which he said would engender growth and pull the country out of the looming recession.

Onyereri also charged the apex bank on increased consumer protection, stressing that customers deposits must be protected from unnecessary charges and fraud so as not to lose public confidence in the Nigerian financial system.

At the end of the oversight function, the House of Representatives Committee of Banking and Currency chairman, commended the CBN saying it “has shown sound organizational prowess and effective management.”