CBN returns N5bn illegal bank charges to customers

CBN returns N5bn illegal bank charges to customers.
It also said it would focus on the protection of consumers of products
being brought to the market by banks over the next three years,.
The Deputy Governor, Financial Services, CBN, Dr. Kingsley Moghalu,
told the Senate Committee on Banking, Insurance and other Financial
Institutions on Tuesday, that there had been acrisis of confidence
between banks and their customers regarding charges on deposits.
He said, "In the next few years, between now and 2015, we will be
focusing on consumer protection. There are ranges of bank charges that
are acceptable.
"As I speak to you, we have recovered from the banks N5bn as wrong
charges, which have been returned to Nigerians."
He said CBN was also focusing on data integrity from the banks,
financial stability, disclosure, transparency, corporate governance
and risk management.
Moghalu said that although some stability had been achieved as a
result of the reforms in the banking sector, CBN was taking measures
to ensure that the gainsof the reforms were not reversed.
He justified a recent circular that put embargo on further lending to
bank debtors, who owed about $5bn, saying there were indications that
financial indiscipline was rearing its ugly head again.
"They will not be allowed to borrow until they start paying their
debts. This is to ensure that the gains from the reforms were not
reversed," he said.
Moghalu also explained the economics of high interest rates, arguing
that it was necessary to keep inflation at a stable rate, while
sustaining the value of the naira.
According to him, the reforms arenot a destination, but a process that
will continue so as to save the country from the effects of the global
financial crisis.
The committee sought clarifications on the various intervention funds
operated by the CBN, expressing concerns thatthe agriculture sector
was receiving little of the funds, in spite of the fact that it was
crucialto the national economy.
Moghalu, however, explained that the intervention funds were meant to
stimulate the economy and mop up excess liquidity