The House of Representatives Committee on Banking and Currency on Thursday called for the establishment of a financial services commission that would ensure synergy between the activities of the monetary and fiscal authorities.
Its Chairman, Mr James Onyereri, made call in Lagos during a visit to the Central Bank of Nigeria (CBN) as part of the committee’s over sight function.
Onyereri said having such commission would boost the nation’s growth.
He said that the CBN and the Ministry of Finance needed to work together to achieve that purpose.
“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.
Onyereri said that the committee was worried about the rising Non Performing Loans (NPL) in the banking industry, urging the apex bank to rise to its regulatory role in addressing the issue.
He noted that a substantial part of the NPLs had been insider abuse within the financial system.
Onyereri, therefore, called on the CBN to wield the big stick against the culprits as a deterrent to others in the system.
He also urged the CBN to step up its supervision to curb such trends in the system.
The chairman called for increased lending to the real sector to engender growth and allow the country out of the looming recession.
Onyereri urged the CBN to ensure increased consumer protection, saying customers’ deposits needed to be protected from unnecessary charges and fraud.
According to him, this will not erode the public confidence in the financial system.
At the end of the oversight function, the chairman commended the CBN, saying “It has shown sound organisational prowess and effective management.” (NAN)