The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, highlighted concerns about the increasing transaction volumes of non-bank financial institutions (NBFIs) in West Africa, which he believes pose risks to financial stability. He conveyed this message at the 10th meeting of the College of Supervisors for Non-Bank Financial Institutions of the West African Monetary Zone, represented by Abayomi Arogundade, the Acting Director of the Other Financial Institutions Department at CBN.
Cardoso emphasized the need to monitor trends, risks, and innovations within NBFIs/OFIs due to their growing transaction volumes, which could potentially destabilize the financial system. He noted that fintech loans are a significant innovation, facilitated through electronic platforms connecting lenders and borrowers, sometimes involving fintech firms acting as financial intermediaries or payment service providers. Additionally, innovations linked to crypto or stablecoin assets were also discussed among jurisdictions.
NBFIs provide financial services without banking licenses and are unable to accept deposits, distinguishing them from traditional banks.
