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Sustainable practices: CBN considers incentives for banks

By BusinessNews Staff on June 9, 2015

The Central Bank of Nigeria is working on a set of incentives for banks in the country to imbibe sustainable banking practices.

The Special Adviser to the CBN Governor on Sustainable Banking, Dr. Aisha Mahmood, revealed this in Abuja during an interview with journalists to mark the World Environment Day.

Mahmood, who did not specify the type of incentives the bank was working on, however, said the CBN had advised Deposit Money Banks not to lend money to businesses that were impacting negatively on the environment.

She said, “The CBN wants to incentivise banks that do well in sustainable banking principles.

“On their own part, deposit money banks are expected to voluntarily report to the CBN their sustainable banking principles. Since these banks came in voluntarily to the sustainable banking principle initiative; once they have joined, they are expected to comply with the principles.”

Mahmood noted that the CBN was doing a lot to promote resource/energy efficiency by being connected to the national grid thus minimising the use of generators.

The CBN Governor, Mr. Godwin Emefiele, urged the employees of the bank to imbibe the culture of preserving the ecosystem through sustainable practices not just within the office environment but in all surroundings.

The CBN, he said, had adopted sustainable banking principles to protect the environment and human rights.

As part of the World Environment Day celebration, Emefiele led other top executive and management staff of the CBN to plant trees around the bank headquarters in Abuja.

[Punch]

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