Reps To Probe Banks, Other Financial Institutions Over Non-Compliance With CBN Directives

Benson noted that this speculative activity by commercial banks and certain financial institutions has further exacerbated the harsh economic situation in the country and led to difficulty by legitimate businesses to obtain forex for their business transactions.

He emphasised that the CBN has intervened by introducing new monetary policies to check the rise in the rate of the Dollar among which are the Net Open Position Limits and holding excess long foreign exchange.

The lawmaker stated: “We are also aware that commercial banks and certain financial institutions are reluctant to implement the monetary measures put in place by the apex bank to check this unwholesome practices by banks and other financial institutions in the country.”

Benson was of the opinion that unless drastic legislative measures are taken to enforce the implementation of these directives, the country would continue to experience dire economic hardship as a result of continuous rise in foreign exchange rates.

The House resolved to “mandate the House Committees on Banking Regulations and Banking Institutions to conduct an investigative hearing on the non-compliance by banks and financial institutions with CBN directives on the Net Open Position Limits”.

It further mandated the Committee on Legislative Compliance to ensure full implementation.