Strong capital, liquidity buffers, key to global financial shocks –experts
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By Ginika Okoye
Experts in the financial sector say building strong capital and liquidity buffers will help financial institutions withstand and adapt to global shocks and financial crisis.
The experts said this at the 18th Chartered Institute of Bankers of Nigeria (CIBN) Annual Banking and Finance Conference in Abuja.
They also said that enhancing corporate governance, ethics, professionalism and strengthening risk management systems would also help financial institutions adapt to economic shocks.
Dr Agnes Martins, the Chairman, Board of Directors of Guaranty Trust Bank Limited, said that capital buffers and strict regulations were ingredients that held banking systems that survived during global financial crisis.
She urged financial institutions to prepare insights and foresight in risks management.
Dr Blaise Ijebor, the Director, Risks Management, Central Bank of Nigeria (CBN), said the bank was ensuring that relevant frameworks were put in place for risk management.
“For us to have adequate time to understand what is hitting us and what changes we are going through, it is very important that we have enough capital buffers.
“That is one of the key things that the governor did when we came.
“He signalled that we are going to do a recapitalisation of the sector.
“It is impossible for someone who is being hit by a shock that does not have enough capital buffers to sit down and say, I want to understand this problem, because by that time it is too late.
“But if you have enough buffers, you can stop and say, lets understand where we are going, lets make a decision on how we are going to approach it.
“We need these buffers also for our economic ambitions,” he said.
The Chief Executive Officer of First Bank of Nigeria Plc, Mr Olusegun Alebiosu, said that compliance risk management system was key to adapting to global financial shocks.
He called on stakeholders in the financial sector to be resilient and proactive in managing risks in their organisations.
The News Agency of Nigeria (NAN) reports that the title of the session is ‘Adapting to Global Shocks: Enhancing Risk Management Challenge and Regulatory Practices for Sustainable Growth’.
The theme of the conference is: ‘The New Economic Playbook: The Intersection of Banking, Policy and Technology’. (NAN)(www.nannews.ng)
Edited by Ese E. Ekama-Williams
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