The Governor of the Central Financial institution of Nigeria, Olayemi Cardoso has known as for extra regional collaboration to strengthen monetary stability and development within the West African area.
The governor made the decision on the tenth assembly of the School of Supervisors for Non-Financial institution Monetary Establishments Abuja on Monday.
The occasion, hosted by the West African Financial Institute, gathered regulators, policymakers, and monetary consultants from throughout the area to debate crucial points dealing with the non-bank monetary sector in West Africa.
In his handle, Cardoso underscored the significance of regional collaboration in strengthening monetary stability and selling financial development inside the West African Financial Zone.
“Now, greater than ever, the necessity for collaboration and cooperation amongst Member States can’t be overemphasized,” he emphasised, quoting an African proverb to focus on the importance of unity in attaining frequent targets.
The Governor recommended the efforts of the CSNBFI in advancing regulatory frameworks, notably mentioning the latest adoption of the Mannequin Act for Non-Financial institution Monetary Establishments and Non-Financial institution Monetary Holding Firms throughout the WAMZ.
This legislative milestone, authorised in March 2024, marks a pivotal step in direction of harmonising supervisory practices and enhancing the resilience of the monetary sector.
Highlighting rising traits, the apex financial institution’s governor addressed the rising position of fintech improvements and their implications for monetary stability.
“Fintech loans and digital platforms are reshaping monetary intermediation,” he remarked, urging supervisors to bolster their cybersecurity frameworks and undertake risk-based supervisory approaches to mitigate related dangers.
The Governor additionally emphasised the School’s give attention to local weather danger regulation, acknowledging the sector’s vulnerability to environmental shifts and the necessity for tailor-made regulatory responses aligned with world requirements.
Cardoso urged delegates to leverage the platform for data alternate and collaboration, emphasizing the significance of studying from one another’s experiences in navigating the evolving monetary panorama of West Africa.
Chairman of the School, Mr. Yaw Sapong, welcomed delegates and acknowledged the essential position non-bank monetary establishments play in selling monetary inclusion and financial development.
Sapong highlighted achievements made by the School, together with harmonized regulatory frameworks, automation of supervisory processes, and strengthened AML/CFT regimes.
He emphasised the necessity for coordinated coverage responses to deal with present financial challenges, together with inflation and forex fluctuations.
“We should proceed to work collectively to construct a resilient and inclusive monetary sector that helps sustainable financial development in our area,” Sapong urged.
The Director Common of WAMI, Dr. Olorunsola Olowofeso emphasised the necessity for strengthened resilience within the monetary sector, citing rising dangers resembling climate-related dangers, cyber threats, and digitization challenges.
“We should proceed to watch coverage actions and spillovers to make sure the monetary system is resilient,” he urged.
“WAMI stays dedicated to implementing the WAMZ integration agenda,” he mentioned.
The CSNBFI assembly goals to overview progress made within the NBFI sector since late 2023 and formulate methods to deal with present challenges. Discussions will embody regulatory harmonisation, cybersecurity, and the influence of digital improvements on monetary providers.