{"id":8411,"date":"2013-08-15T18:40:02","date_gmt":"2013-08-15T18:40:02","guid":{"rendered":"http:\/\/disnaija.com\/nigerian-newspapers\/banks-reliance-on-public-funds-killing-private-sector\/"},"modified":"2013-08-15T18:40:02","modified_gmt":"2013-08-15T18:40:02","slug":"banks-reliance-on-public-funds-killing-private-sector","status":"publish","type":"post","link":"https:\/\/disnaija.com\/banks-reliance-on-public-funds-killing-private-sector\/","title":{"rendered":"\u2018Banks\u2019 reliance on public funds killing private sector\u2019"},"content":{"rendered":"
<\/div>\n
<\/div>\n

The House of Representatives on Wednesday criticised the over-reliance on public sector funds by commercial banks in the country.<\/p>\n

The House Committee on Banking and Currency noted that most banks had abandoned the private sector while chasing government funds, which they considered as \u201ccash cow.\u201d<\/p>\n

The Chairman of the committee, Mr. Chukwudi-Jones Onyereri, said in Abuja that the committee had always made a case for the withdrawal of public funds from commercial banks.<\/p>\n

He explained that doing so would compel the banks to focus on their core duties and instead source for alternative funds.<\/p>\n

The committee declared its support for the latest policy of the Central Bank of Nigeria raising the Cash Reserve Requirement of public sector funds in their coffers to 50 per cent.<\/p>\n

Onyereri said, \u201cThe withdrawal of public funds from the commercial banks will force the banks to look for alternative funds, which will in turn lead to offering of better incentives to the public, including higher deposit rates and an increase in private sector lending.<\/p>\n

\u201cThe committee, therefore, sees the recent policy decision by the CBN to increase the Cash Reserve Requirement for public sector deposits in banks to 50 per cent as a step in the right direction.\u201d<\/p>\n

\u201cThough, it is the committee\u2019s goal to see to a total withdrawal of public sector funds from the commercial banks, the committee applauds the CBN for taking this important step and for seeing the benefit in the committee\u2019s stance on this matter and the obvious added value such an action will bring to the private sector.<\/p>\n

\u201cThe committee believes that in the long term, this action will bring the much-needed respite to the consumers from high bank charges, lack of banking incentives and high interest rates.\u201d<\/p>\n

\n

————————————————————————————————————————-
Posted in Nigerian Newspapers. <\/a>A DisNaija.Com<\/a> network.<\/p>\n

Source: Punch Newspaper<\/p>\n

DisNaija.Com<\/b> publishes regular posts on Nigeria News,<\/a> Nigerian Newspapers,<\/a> Online Nigeria Gist.<\/a><\/p>\n

Follow us on Twitter<\/a> and Facebook<\/a>.<\/p>\n

<\/div>\n

<\/p>\n

<\/div>\n

Nigerian Newspapers<\/a>
\n
\nFollow @Dis_Naija<\/a>
\n