CBK asked to restrain from over regulating SMEs

Members of the National Assembly have called on the Central bank to restrain itself from over regulating small and medium enterprises.

The MPs have said small and medium enterprises are now unable to access loans from banks because of over regulation and unfriendly valuation.

They were making contributions to the finance bill 2018 that touches on ten acts of parliament.

Jude Njomo [Kiambu town] said that banks had offered to provide ten percent of loans to small and medium enterprises but they are yet to honor the pledge.

He called for stability in the banking sector to cushion depositors from those that collapse.

The MP added that Nigeria had over a hundred unstable banks but after amalgamation into about ten, the banking stabilized and helped SMES to prosper.

Chris Wamalwa [Kiminini] accused some banks that make it very difficult to access loans.

He said in the event of a default, some banks lay harsh conditions for clients because they are enjoying some form of monopoly aimed at frustrating new entrants in the sector.

Charles Kilonzo [Yatta] cautioned against Parliament being used to legislate laws that sustain cartels in the banking sector.


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