Abuja: Experts in the financial sector say building strong capital and liquidity buffers will help financial institutions withstand and adapt to global shocks and financial crises. They emphasized this point during the 18th Chartered Institute of Bankers of Nigeria (CIBN) Annual Banking and Finance Conference held in Abuja.

According to News Agency of Nigeria, the experts highlighted the importance of enhancing corporate governance, ethics, professionalism, and strengthening risk management systems to help financial institutions adapt to economic shocks. Dr. Agnes Martins, Chairman of the Board of Directors at Guaranty Trust Bank Limited, noted that capital buffers and strict regulations are crucial elements that supported banking systems during previous global financial crises. She encouraged financial institutions to develop insights and foresight in risk management.

Dr. Blaise Ijebor, Director of Risk Management at the Central Bank of Nigeria (CBN), discussed the bank’s efforts to establish relevant frameworks for risk management. He emphasized the necessity of having adequate capital buffers to understand and respond to economic changes effectively. “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,” he explained. “But if you have enough buffers, you can stop and say, let’s understand where we are going, let’s make a decision on how we are going to approach it.”

Mr. Olusegun Alebiosu, Chief Executive Officer of First Bank of Nigeria Plc, highlighted the importance of a compliance risk management system in adapting to global financial shocks. He urged stakeholders in the financial sector to remain resilient and proactive in managing risks within their organizations.

The News Agency of Nigeria (NAN) reports that the session was titled ‘Adapting to Global Shocks: Enhancing Risk Management Challenge and Regulatory Practices for Sustainable Growth’. The overall theme of the conference was ‘The New Economic Playbook: The Intersection of Banking, Policy and Technology’.