Financial crises usually call for major policy responses as well as frameworks to contain the damage done to the economy and the society, in order to safeguard financial stability in the future. To be prepared to manage the risk of continuous distress in the Nigerian banking sector, the CBN in 2012 integrated sustainable business practices into the sector with the prioritisation of Sustainable Banking and Environmental & Social Risk Management. The Nigerian Sustainable Banking Principles (NSBP) came into force after the Bankers’ Committee approved its adoption for Banks, Discount Houses, and Development Finance Institutions in Nigeria. Thirty four (34) financial institutions then, signed and committed to implement the principles.
The Development Bank of Nigeria and the Central Bank of Nigeria have urged microfinance banks and other participating financial institutions to improve their sustainability efforts and become more responsive to their social and ecological environment.
Punch reports that, The banks said this was important as Nigeria and the global communities continued to grapple with the effects of climate depletion and economic uncertainties caused by the COVID-19 pandemic.
According to a statement on Friday entitled ‘DBN advocates sustainability banking for MFBs,’ the banks said this during a webinar organised by DBN for MfBs and PFIs.
The initiative was focused on deepening DBN’s efforts to increase awareness on sustainability issues, and also positively influence its PFIs Sustainable Development Goals focused initiatives and operations.
Delivering her keynote address, the Special Adviser to CBN Governor on Sustainability, Dr Aisha Mahmoud, said deliberations on emerging issues of sustainability were important for the financial ecosystem.