The Central Bank of Kenya (CBK) Governor Dr. Patrick Njoroge is calling on the urgency of the banks to meet targets to reduce greenhouse emissions under the Paris Climate Agreement following the rise of sustainability concerns.
According to Dr. Njoroge, banks must rise to this challenge as the consequences of failure are dire to society and banks since they reel from the damage to their loan portfolios from extreme weather events.
“Natural disasters, associated previously with developing countries, have spectacularly reared their ugly heads in the developed countries. In the last few weeks, once-in-a-millennium floods have ravaged Europe, while heatwaves and bushfires have scorched the western parts of the U.S,” said the Governor.
It is a serious concern that banks may be left with stranded assets, should they fail to keep abreast with the transition to a net zero emissions global economy
In order to maximize opportunities while minimizing risks that come with new technologies, CBK Governor asked the Uganda Bankers’ Association (UBA) to reinforce cyber defenses internally to neutralize the insider threat.
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He also expressed concerned of the strong governance in the banking sector which he said should underpin the culture in the banks since banks play a critical role in foreign exchange markets and are
This even as he applauded rising innovations and new technologies in the banking sector in Uganda.
He spoke at the Uganda Bankers’ Association Fourth Annual Bankers Conference where he was the keynote speaker.
According to the Governor, rapid increase of innovations and new technologies are signaling significant opportunities to re-engineer the operations of governments and business and transform lives and livelihoods.
“From mobile banking to cloud computing, artificial intelligence to blockchain technology, internet of things, and robotics, all heralding significant opportunities to re-engineer the operations of governments and business and transform lives and livelihoods, “he said.
He lauded efforts achieved by the digitalization amid the COVID-19 pandemic saying it has enabled access to not just financial services but also other essential services including health and education despite various containment measures including social distancing, lockdowns, and stay-at-home protocols.
“Undoubtedly, digitalization has been the silver lining during this pandemic. With various containment measures including social distancing, lockdowns, and stay-at-home protocols, digitalization has enabled access to not just financial services but also other essential services including health and education. E-commerce has exploded as businesses pivoted to the digital marketplace.”
