The Securities and Exchange Commission (SEC) has advised banks to strengthen their corporate governance principles and risk management frameworks to increase investors’ confidence in the ongoing recapitalisation exercise.

Director General of the commission, Dr Emomotimi Agama, said this while restating the commission's commitment to making sure there is transparency and efficiency in the recapitalisation process.

Agama said the framework for banking sector recapitalisation (2024 –2026) provides clear guidance for issuers while also safeguarding the interests of investors.

He stated that the key to bridging the gap between issuers and investors is harnessing innovation for inclusive growth.

SEC, he said, through the aid of a digital platform, is exploring the integration of blockchain technology for secure and transparent transaction processing, a step that will redefine trust in the market.

He assured stakeholders of the commission’s steadfastness in achieving its mission of creating an enabling environment for seamless and transparent capital formation.

“Our efforts are anchored on; providing issuers with clear guidelines and maintaining open lines of communication with all market stakeholders, reducing bureaucratic bottlenecks through digitalisation, ensuring timely review and approval of applications, and enhancing regulatory oversight to protect investors while promoting market integrity.

“We are equally presented with opportunities which include Leveraging technology to deepen financial inclusion and enhance market liquidity, as well as developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments," he said.