• Friday, May 24, 2024
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CBN expects banks’ full compliance with NSBP reporting January 2015

The Central Bank of Nigeria (CBN) has said it expects full compliance with the provisions of the Nigeria Sustainable Banking Principles (NSBP) reporting template by all concerned institutions by January 2015, saying it is necessary for a level playing field.

In line with global trends on sustainability, the CBN on March 6, 2014 issued the NSBPs reporting template to banks, discount houses and development finance institutions for compliance.

The purpose of the reporting template is to provide reporting institutions with a uniform format for reporting their implementation efforts.

Franklin Ahonkai, deputy director, sustainability department, CBN, who spoke on ‘Regulatory Reporting and Expectations’, at the NSBP pre-reporting workshop organised by Access Bank in Lagos, noted that by the circular sent out by the apex bank reporting institutions were informed that sustainability reporting will commence in June 2014 with the submission of the one-off report (first quarter) not later than July 7, 2014.

The circular, he said, also required that the second quarter one-off report should be submitted to the CBN not later than October 7, 2014 while the third quarter report should reach the CBN not later than January 7, 2015.

He acknowledged that some banks have complied with the provisions of the circular, having submitted their first quarter reports to the CBN.

Currently, the CBN is reviewing the reports received so far to monitor the progress of implementation at individual banks and industry levels; ensure appropriate intervention to help resolve implementation challenges; have an objective, fair and equitable basis to offer carrots; identify frontrunners that can provide assistance/guidance to other institutions.

The CBN expects that compliance with the reporting requirement will result in increased appreciation and better management of environment and social risks and opportunities; streamlining processes and improving efficiency, among others, he said.

Regarding the second quarter returns, the CBN expects that reporting institutions would have developed their respective environmental and social (E & S) risk management policy as well as E & S footprint policy for their respective business operations.