The Financial Services Regulation Coordinating Committee (FSRCC), which comprises of major regulatory bodies in the financial sector, has underscored the need for an effective banking and capital market model that will protect depositors’ funds from high risk transactions, according to a statement from Nigeria’s apex bank released on Wednesday.
Rising from its 40th meeting, which was the third since the committee was reconstituted last December, it stressed, among other things, the need for ”a banking model anchored on a financial holding company structure to protect depositors by ring-fencing banks from non-banking business as contained in the four pillars of CBN banking reforms blueprint”.
Members of the FSRCC include, the Central Bank of Nigeria, the Nigerian Deposit Insurance Corporation, the Securities and Exchange Commission, the National Insurance Commission and the Corporate Affairs Commission.
Others include the National Pension Commission, the Nigerian Stock Exchange and the Abuja Securities and Commodity Exchange.
The Committee was set up to meet once in a month to discuss issues that go to the heart of the financial system reforms and engender coherence in financial regulation.
Members at the meeting also considered and adopted some policy directives for promoting a safe, sound and stable financial system.
This includes information sharing mechanism to promote effective inter-regulatory cooperation/synergy and the hosting of a website for the FSRCC for the purpose of disseminating information to stakeholders.