The Governor, Central Bank of Nigeria, Mr Olayemi Cardoso, has said the banks need increased capital to support the economy.
Cardoso spoke during Nigeria Sustainability Summit 2023 event at Access Bank Towers in Lagos on Tuesday, with the theme, ‘Crisis-resilient and new Nigerian economy’.
The summit which was facilitated by the European Organisation for sustainable Development, aimed to kick-start the shift from a low value and crisis prone economy, to a high-value socially inclusive, green and climate-friendly economy through a sustainability-driven corporate sector.
Cardoso, who was represented at the summit by the Director, Financial Policy and Regulation, CBN, Mr Haruna Mustafa, said, “Now in 2023, here we are in the face of prevailing macroeconomic challenges that we currently face. To be able to cushion unexpected losses and support the aspiration of the President to build $1tn economy that is rooted in sustainable principles warrants that we need to take a second look at the capitalisation of our banks.
“We have seen banks breaching some of the metrics like single obligor limits that are part of the prudential guidelines to check banks’ risk exposures.”
The banking sector, he noted, started sustainability banking principles 10 years ago as a voluntary initiative.
Considering the threats that climate risks posed to the stability of the financial system and also in the interest of long term sustainability of the industry, he said the regulation was becoming more imperative.
He said there was ongoing effort to come up with regulations around climate related risks.
SOURCE: PUNCHNG
