The Central Bank of Nigeria has mandated commercial banks to review their loan exposure to oil and gas, agriculture, telecommunication sectors among others.
The apex bank explained that this will guarantee the stability of their operations.
CBN Governor Godwin Emefiele spoke on this at the weekend at the Financial Market Dealers Association (FMDA) annual conference in Lagos.
Speaking on the theme: ”Role of Financial Markets in the Nigerian Economy Post-COVID-19″, Emefiele, who was represented by CBN Deputy Director, Financial Markets Department, Patrick Ajani, said banks and other financial markets players had been directed to “now critically assess their exposure to different sub-sectors while continually leveraging technology to support their business operations and continuity”.
The CBN boss directed banks to also critically assess third-party provider risks, including businesses within the value-chain of sectors funded by the banks.
Emefiele said the resilience of the structure needed to support the financial market is very paramount in ensuring that the processes of keeping the banks stable is realised.
Emefiele said: “Market participants must collaborate closely to build back better. This will promote economic of scale and enhance synergy. Resilience in funding markets was also greatly tested during the pandemic which led to large-scale interventions by the CBN as seen in the targeted credit facility, moratorium, interest rebate, household and mortgage loans and regulatory forbearances by both the fiscal and monetary authorities to preserve the markets and ensure stability.”
