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CBN, SEC to examine financial state of stockbroking firms

By Emmanuel Elebeke

The Central Bank of Nigeria, CBN, and the Securities and Exchange Commission, SEC, have perfected plans to examine the activities of stock broking firms in the country.

The Director of Banking Supervision of the CBN, Mrs. Agnes Olatokunbo Martins, disclosed this Tuesday at a press conference at the end of the bankers’ committee meeting in Abuja.

Martins said the examination activities of stockbrokers would be a joint effort of both CBN and SEC aimed at maintaining financial stability.
“The CBN will be working with SEC to carry out joint examination of stockbroking firms. Presently, we supervise the banks, but in the interest of financial stability, we are going to be working closely with SEC to supervise stockbroking firms, especially those that are owned by holding companies that are under the new banking reforms,” said Martins.
The process, according to her, is to ensure that financial stability is maintained, adding that it is all part of the banking consolidation exercise geared towards ensuring sound financial system.

She noted that the joint examination and supervision of the stockbroking firms is to prevent “a situation where there will be loopholes and gaps that might be exploited. So when we carry out these examinations jointly, those kinds of gaps can’t be exploited. That’s the reason behind it.”
The decision, she said, was taken in the course of the meeting and the modalities will be spelt out later.
It was also revealed that all the banks in the country have “decided to stop forthwith charges for usage of ATMs.”
Also speaking, the Managing Director of First Bank, Mr Bisi Onasanya, said they have worked out modalities to stop account holders from bearing the burden of N100 charge after using the ATM of a bank other than their own banks.

“Presently when you use the ATM of a bank other than your own bank, there is a charge of N100 which is borne by the account holder, we have decided that we will work out the modalities and ensure that with immediate effect, we would pass on the cost to the respective banks who would bear the cost of this service. No matter where you are withdrawing your money from, you would not be subjected to any charge for using the ATMs,” she said.


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