Fidelity bank banner Bayelsa State banner
CBN supreme in banking supervision —Otu

By News Express on 10/03/2015

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 2,230

The Chairman, Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Bassey Edet Out, says that the position of the Central Bank of Nigeria (CBN) as the prime regulator in Nigeria’s financial system cannot be disputed.

He stated this in Abuja on Monday during the public hearing on the Insurance Brokers’ Act, 2003 (Repeal and Enactment) Bill, 2015 and the Nigeria Deposit Insurance Corporation (NDIC) Act 2012 (Repeal and Enactment) Bill, 2015.

According to him, the committee is committed to ensuring the safety of financial deposits of Nigerians and as such would not support a Bill capable of compromising the powers of both the CBN and the Nigeria Deposit Insurance Corporation (NDIC).

Senator Otu also commended the CBN for being objective and dispassionate in promoting Bills that will promote the safety of the country’s financial system.

Speaking earlier, the Deputy Governor of the CBN in charge of the Operations Directorate, Alhaji Suleiman Barau, who made a presentation on behalf of the Governor, Mr. Godwin Emefiele, identified certain provisions in the proposed NDIC Act, which he noted sought to make the NDIC a parallel regulator of banks in Nigeria.

Alhaji Barau also stressed that the NDIC Bill 2015, in its current form, equally sought to confer conflicting supervisory functions and powers on the NDIC over Nigerian banks, just as it aimed at creating overlapping regulatory responsibilities for the NDIC.

He observed that the NDIC, among other things, was equally seeking to carry out consolidated supervision of subsidiary banks without due regard to the CBN and other regulators in the financial system.

Citing trends around the world, he pointed out that since the global financial crises of the late 1990s; countries had moved towards consolidating supervision, hence a conflict would arise if primary regulatory functions were distributed among several bodies.

Barau, therefore, cautioned against allowing issues of conflicting interest to thrive in the financial system, even as he assured that the CBN would continue to assist the NDIC in order to strengthen it in carrying out its primary objective of protecting deposit customers of banks.

In his remarks, the Managing Director/Chief Executive Officer of the NDIC, Alhaji Umaru Ibrahim explained that the NDIC was not in any way seeking to compete with the CBN nor was it targeting to introduce provisions that were targeted at taking over some of the powers of the CBN.

Also presenting a paper at the hearing, a former CBN Deputy Governor, Banking Supervision, Mr. Victor Odozi under whose tutelage the NDIC was established in 1988 said that the corporation was established to complement and support the CBN and not to supplant and undermine it.

He, therefore, urged for greater collaboration between the two institutions, noting that the financial system stood to gain a lot from both bodies.

Another former Deputy Governor of the Bank, Pastor Tunde Lemo, in a brief presentation observed that the policy objective of the NDIC should be limited to deposit protection.

According to him, the NDIC should be seen as a supervisor of the deposit taking institutions for deposit protection purposes and not as a regulator as the role would be in conflict with the CBN.

Others who spoke at the hearing were unanimous that the CBN remained the only regulator in the Banking sector, but stressed that the proposed Bill should take into consideration the need for greater collaboration between the bodies to avoid turf wars.

•Photo shows CBN

Source News Express

Posted 10/03/2015 03:17:34 AM


Share on facebook Yahoo mail icon Gmail icon Share on Google+




You may also like...
NAFDAC cautions against fake products

Breaking News: Many feared dead as bomb blast...

Dangote Tomato gets set to reopen

Conduct election in IDP camps, INEC urged

BREAKING: Senate fires Lottery Commission DG

Army confirms rescue of abducted Chibok girl

Kano, Dangote Group to partner on $150m solar...

Moderate dust haze conditions to prevail today, says...

Acting Police IG warns against extra judicial killings...

Buhari, oil workers meet to tackle petrol scarcity...

NPFL All-Stars go down fighting in Spain

Nollywood star Kate Henshaw boycotts Sterling Bank, says...


Latest News Operation Python Dance: IPOB discovers site where slain members were secretly buried •Alerts International Community Woman collapses at Benin Airport while awaiting Atiku We are working with some PDP Senators to remove Saraki — APC Kidnapper dies from drug taken at crime scene Army uncovers Boko Haram recruitment link on social media Nigeria’s democracy must not fail, Turaki warns Nigeria ranked among dangerous countries for aid workers How Kwankwaso stashed Kano's $1million in Ukraine — Ganduje Food insecurity: 3.7m Nigerians in danger– Sen. Abdullahi Bayelsa community bemoans distortion of creeks near Shell’s oilfields Alleged contempt: Court insists IGP must arrest INEC boss 500 PDP members defect to APC in Jigawa


Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (376,542 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (365,943 views) Shameless Genevieve Nnaji exposes breasts in public (295,640 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (241,384 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (221,976 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (216,805 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (192,119 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (174,281 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (159,383 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (157,831 views) Lagos plane crash: Journalist releases victims’ names (152,338 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (142,745 views)


Categories Advertorials (3) African Press Organisation (81) Art & Literature (56) Business & Economy (3,445) Business Verdict (48) Columnists (907) Complaints & Requests (95) Enterprise & Opportunities (207) Entertainment (526) Features (632) Global Business Monitor (294) International (2,265) Interview (161) Live Commentary (28) Love Matters (134) News (37,998) Opinion (1,056) Pidgin (11) Politics (6,031) Religion (814) Sports (1,643) Stock Watch (33) AMA & Al Jazeera Global Update


CBN banner

Firstmobile banner




Liverpool Destroying West Ham 4-0 - Highlights


APO Group Partner




GOCOP Accredited Member

GOCOP Accredited member



Africa Media Agency and Al Jazeera