The Central Bank of Nigeria (CBN) has stated that regulations in banking processes are necessary to mitigate risks, News About Nigeria reports.
The deputy governor of financial systems stability at CBN, Mr Philip Ikeazor, said this during a two-day Financial Institutions Training Centre (FITC) Fintech Conference held in Lagos.
He noted that the digital era is full of risks, hence, the need to come up with regulations.
Speaking at the event which was themed, “Building Trust in the Digital Age: Balancing Performance with Compliance,” Ikeazor noted that issues such as cybersecurity threats, data breaches, and digital fraud are persistent concerns that could erode consumer confidence in the system.
He also stated that the apex bank, in addition to existing measures, is working on new regulations to further enhance performance and compliance, adding that the new regulations would focus on two key areas: corporate governance and licensing requirements.
He explained that the new regulation was aimed at improving the level of compliance and corporate governance practice by fintechs in the country.
Ikeazor said the digital banking platforms have made financial services more accessible to millions of Nigerians, fostering greater financial inclusion and convenience.
He maintained that the CBN will continue to implement more policies to tackle cybersecurity challenges, foster innovation to ensure stability and integrity of the financial system.
“The new regulation is crucial to mitigate the risks of the digital era.
“Every organisation should conduct its business processes in compliance with the law and the various regulations. Financial institutions need to take the compliance function as extremely important.
“Corporate governance is also very critical. Organisations need to have the right structure and be effective, transparent, and accountable in the administration of their affairs,” he stated.
