The Central Bank of Nigeria (CBN), has advised banks and other financial institutions to be transparent in their dealings in order to build customers’ confidence.
Mr Kofo Salam-Alada, the Director, Consumer Protection Department (CPD) of CBN gave the advice in an interview with the News Agency of Nigeria (NAN) in Abuja.
Salam-Alada said Nigerian banks and other financial institutions rendering financial services should be transparent and ensure fair treatment to customers.
“For banks to keep their customers and ensure they remain in business, there is the need to build confidence of customers and ensure that they are happy with the services provided by the banks.
“What we are doing here is to help the business of the banks and our expectation is that at certain stage, the regulators will have less to do in terms of market conduct.
“A satisfied customer goes out to advertise the bank because, to me, good treatment of customers should be the best advertisement for banking business, capital market, and insurance among others.
“If thousands or million of bank’s customers decide to withdraw their money from a particular bank, it will affect the health of such bank,” he said.
The CPD director said that what happened in the past had made the apex bank to put measures in place to ensure that consumers of financial services are protected.
He said that investigations had shown that the neglect of customers had contributed to the global financial crisis experienced worldwide in 2007 and 2008.
Salam-Alada assured all customers of financial institutions in the country that the apex bank would ensure protection of all their investments.
He also advised the banks to stick to the rules and operate within the confines of set out financial regulations.
According to him, CBN will not leave any stone unturned to grow their businesses and will continue to put necessary regulations in place for them to thrive.
Meanwhile, a financial expert, Professor Uche Uwaleke has advised the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) by 50 basis points.
Uwaleke gave the advice in an interview with the news agency ahead the MPC MPC meeting scheduled for today in Abuja.
He said it was also pertinent for the committee to maintain 30 per cent Liquidity Ratio and 22.5 Cash Reserve Ratio (CRR).
According to him, the call for adjustment of MPR is due to declining inflation rate from 11.35 per cent in May to 11.20 per cent in June as well as the growing external reserves and stability in exchange rate.
Uwaleke said the reduction was also necessary because of persistent bearish performance of the stock market due to high interest rates.
The expert said a gradual reduction in the MPR , which is the benchmark interest rate, would be consistent with the CBN Governor’s pro-growth five-year blueprint which he unveiled recently.