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CBN urged to involve National Assembly in banks’ recapitalization plan

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Senator Tokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, has urged the Central Bank of Nigeria to involve the National Assembly and key stakeholders in its proposed recapitalization of banks in the country.

At the committee’s retreat with the Nigeria Deposit Insurance Corporation in Lagos State on Saturday, Abiru emphasized the importance of continuously strengthening 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 the banks, while stressing the need for engagement with critical stakeholders, including the National Assembly.

Abiru also highlighted the significance of effective oversight by the National Assembly for the resilience and public confidence in the country’s financial sector.

Regarding the essence of the retreat, he pointed out the need for a better understanding and deepening of the deposit insurance business led by the NDIC.

He acknowledged the resilience of Nigerian banks despite global and national economic challenges, emphasizing the essential role of the NDIC in maintaining financial stability.

Abiru emphasized the legislators’ responsibility in understanding the regulators’ role, especially in light of the impending bank recapitalization by the CBN.

Bello Hassan, the Managing Director/Chief Executive of NDIC, stated that the retreat aimed to foster a mutual working relationship between the legislature and the corporation.

The theme and content of the retreat were carefully selected to facilitate productive interactions and experience sharing between the participants.

Hassan emphasized the crucial role of the Deposit Insurance System in ensuring financial system stability and public confidence in the banking system in Nigeria.

He underscored the importance of a robust legal framework for an effective Deposit Insurance System and highlighted the significance of a harmonious working relationship between the NDIC and the legislature.

The NDIC, as the agency responsible for protecting depositors of deposit-taking financial institutions, plays a pivotal role in incentivizing sound risk management and contributing to the stability of the Nigerian financial system.

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