The Impacts of Sustainable Banking on Deposit Money Banks in Nigeria: A Critical Analysis
- December 1, 2019
- Posted by: RSIS
- Categories: IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue XI, November 2019 | ISSN 2454–6186
The Impacts of Sustainable Banking on Deposit Money Banks in Nigeria: A Critical Analysis
Chiefajugwe, Chukwu Alphonsus PhD.
Abstracts: Majority of Banks all over the world are resolute, resilient and consistent in the adoption of sustainable banking as a tool to achieve significant boast in certain banking parameters such as: comparative edge over other banks that are reluctant to adopt and practice sustainable banking, application of positive risk management framework, increase in profitability, and deepening the marketing segments to increase sales etc.
Nevertheless to state that a typical example in Nigeria is Access Bank PLC which has adopted sustainable banking as a core value, making it possible for the bank to consistently posting impressive profits after tax, translated into increase in earnings per share for the benefit of the stakeholders and maintaining a stable capital base. This is due to its consistent growth, triggered by its adoption of sustainable banking.
It is imperative to point out that sustainable banking has positive impacts on the banking industry in particular as noted above and on the economy in general because of its ability to boast the critical sectors of the economy, thereby engineering economic growth and development. In view of the above, the Central Bank of Nigeria (CBN)being on the driver’s seat of formulating Monetary Policy has to propel the banks to adopt and implement sustainable banking through the issue of circle on the Principles of Sustainable Banking in September 2012, which are to be aligned with the goals and objectives of each bank.
The paper will therefore deeply analyze the advantages of Social Responsibility, critically examine the principles of sustainable banking, strategically undertake robust appraisal of the positive and the negative impacts of the sustainable banking on the banking industry and the economy as well and will highlight some important recommendations which will put the principles of the sustainable banking on spotlight for policy formulation and adoption by the banks.
I. INTRODUCTIONS
Succinctly stated that no organization exists in isolation of its environment and the society in which it operates, which is inclusive of Deposit Money Banks (DMBs), DMBs are deposit taking Institutions and active in the creation of loans through lending. In the performance of these critical functions they interact with the Environment and the Society (E&S) in which they are operating. Specifically stated, the Banks, interact with the E&S, through the process of offering them their products and financial services, through Social Responsibility, and in the application of local law.
