CBN Charges Banks On Economic Recovery

The Governor, Central Bank of Nigeria (CBN), Godwin Emefiele yesterday charged commercial banks in the country to take up the role of returning the nations economy to normalcy as their financial intermediation activities cut across all sectors.Disclosing this during his opening address at the 2016 Bankers Committee retreat in Lagos, yesterday, Emefiele said with the intervention policies of the CBN, which are extended to the target populace through them, there is added role for the financial institutions in evolving innovative approach to the nations development agenda.He also noted that at a critical time in the countrys history, the emphasis on diversification and support for its achievement must be accorded priority by bankers.At the retreat with the theme, Economic Recovery: The Role of the Banking Sector, the governor reiterated that banks must come up with innovative solutions that will enable the finance sector to play a key role in driving Nigerias growth and development.The retreat, which is the 8th in the series, is an annual event where members of the Bankers Committee engage in strategic reviews of critical developments within the financial system and the economy.The focus on economic recovery by bankers is timely, given the sustained external headwinds we are grappling with, triggered by several factors. Chief of such is the 70% plus decline in the price of crude oil between June 2014 and June 2016.With over 90% of our export revenues coming from the sale of crude oil, the drop in its prices along with the end of quantitative easing programme in the United States has led to a huge impact on our economy, particularly in the foreign exchange market, he said.Meanwhile, Lagos State Governor, Akinwunmi Ambode, has charged banks to take their roles in the quest to revive the economy seriously.Represented by the Deputy Governor, Dr. Idiat Adebule, he called for a change of orientation and support for policy instruments that are aimed at achieving the overall goal of reviving the economy.We must innovate now, because there is no option to get out of the recession. We must get it right too. The banking sector has a major role to play because the survival of other sectors depends in part on sustainability and vibrancy of banks, he said.He also assured that the suggestions of the bankers will be given due consideration by government and its agencies, with a view to serve as a guide in policy formulation.But noting that there is a paradigm shift, Emefiele said that emphasis is now placed on creating an enabling environment for a more diversified growth structure that is not dependent on the sale and production of one producecrude oil.
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