Coronavirus has exposed vulnerability of financial sector — Belo-Olusoga

Coronavirus has exposed vulnerability of financial sector — Belo-Olusoga

Former Chairman of Access Bank, Mrs Mosun Belo-Olusoga, says the COVID-19 pandemic has exposed the vulnerability of the financial sector.
   
   
   
       
       
           
               
                   

Former Chairman of Access Bank, Mrs Mosun Belo-Olusoga, says the COVID-19 pandemic has exposed the vulnerability of the financial sector.

               
           
               
                   

According to her, it has also highlighted the need for strengthening of financial models in the banking sector.

               
           
               
                   

Belo-Olusoga was keynote speaker at the Chartered Institute of Bankers of Nigeria (CIBN) Advocacy Dialogue, Series 2.0, on Thursday.

               
           
               
                   

The webinar had the theme: “Enhanced Sustainable Banking (ESB) Model in the Event of Major Economic and Business Disruptions”.

               
           
               
                   

She said that the banking sector needed to strengthen their financial models to ensure they did well in the face of COVID-19 disruption.

               
           
               
                   

The former bank chairman said that Covid 19 had brought to reality the weaknesses of Nigerian banks in the short term.

               
           
               
                   

She said that the challenge had exposed the need to deemphasise profits among others.

               
           
               
                   

“What we are saying here is that we have to have purpose before profit. This is a time we need to be there for long term.

               
           
               
                   

“We don’t know when life will get back to normal, there is more pressure than ever for organisations to innovate and think outside the box.

               
           
               
                   

”The good news is that financial institutions that step up to meet these challenges will benefit from a brand and shareholder perspective.

               
           
               
                   

“The Covid-19 pandemic brought to fore the critical linkages between the environment, human health and the overall economy.

               
           
               
                   

”Actions and practices that negatively impact the environment have significant consequences on human health,” she said.

               
           
               
                   

Bello-Olusoga said that the health and wellbeing of man also impacted heavily on the shape of the economy.

               
           
               
                   

She said that in the future, sustainability or a company’s relationship with the natural environment and social causes would become more important than ever, urging the industry to prioritise these initiatives going forward.

               
           
               
                   

The Deputy Governor, Financial Systems Stability Directorate, CBN, Mrs Aishah Ahmad, said banks could overcome the obstacles and disruptions caused by the pandemic by fortifying their big models.

               
           
               
                   

“The fact that the industry had been evolving itself puts the banks in a better position to weather the current challenges that are in front of it.

               
           
               
                   

“Banks can only manage these challenges if at this destructive event that is happening they can fortify their big models and become more agile to respond to what’s happening in the market,” she said.

               
           
               
                   

Mr Ibrahim Salau, the Nigeria Programme Coordinator, Environmental and Social Management System (ESRM), an International Finance Corporation, signed a corporate agreement with CIBN to partner in building awareness and sustainable banking capacity going forward.

               
           
               
                   

The News Agency of Nigeria (NAN) reports that other participants at the webinar include Mr Jibril Aku, Vice Chairman, Board of Directors, FMDQ Group; and Mr Simon Thompson, of Chartered Banker Institute (CBI) UK.

Source: Coronavirus has exposed vulnerability of financial sector — Belo-Olusoga

- gist culled from pulseng