Uyo - The Nigeria Deposit Insurance Corporation (NDIC) on Monday called for
sustainable banking practices in the country.
Dr Ade Afolabi, the Director of Research, Policy and International
Department of NDIC, made the call at the on-going workshop organised by NDIC
for business editors and financial correspondents in Uyo, Akwa Ibom.
The theme of the workshop is "Deposit Insurance and Financial
Afolabi said that while banks focused on sustainable banking, their
operations should also generate economic activities for host communities.
He said that this was more important for banks in rural communities as
sustainable banking practices would reduce migration to urban cities.
Afolabi also said that banks had to consider the negative and positive
impacts of any projects before financing them.
He stressed that banks should be able to stop any problem that could arise
from financing projects that would have negative impacts.
The director also advised banks to lend to the real sector activities where
any invested fund could grow.
Afolabi suggested that banks could lend to the real sector activities that
would also support agriculture.
He called on banks to ensure effective corporate governance while engaging
in sustainable banking practices. -