Nigeria: Again, CBN Guarantees Safety, Resilience of Banking Industry

Jul 27, 2021 | This Day - All Africa

The Central Bank of Nigeria (CBN) yesterday reiterated the resilience, safety, and soundness of Nigerian Deposit Money Banks (DMBs) as well as the other financial institutions under its supervision.

The assurance came against the backdrop of "false and unfounded stories circulating in the social media attacking the soundness and safety of some Nigerian banks".

However, the CBN's acting Director, Corporate Communications Department, Mr. Osita Nwanisobi, told journalists that the banking system had proven to be sturdy, despite the global challenges posed by the COVID-19 pandemic.

He said routine bank examinations and stress tests for financial institutions operating in the country indicated that no bank licensed by the CBN is currently under any form of financial distress.

Nwanisobi, who spoke ahead of the next week's Monetary Policy Committee (MPC) meeting of the apex bank, further stressed that the banks had adequate capital to absorb unexpected losses that may arise.

He pointed out that the central bank had continued to monitor the activities of banks to ensure that no individual or institution breached the laid down guidelines in line with the bank's resolve to ensure adherence to prudential standards.

While also calling on the banking public to disregard any report alleging insolvency in the Nigerian banking sector, the CBN director reiterated the desire of the bank to prioritise financial inclusion as a measured approach to increase the number of adults included in financial services provided by banks in the country.

Nwanisobi further urged the banking public to take advantage of the services provided by the banks, particularly the intervention programmes initiated by the CBN, to enhance their economic status and contribute to overall national development.

The apex bank had severally reassured the banking public about the soundness and safety of the financial system.

The CBN Governor, Mr. Godwin Emefiele, recently emphasised the resilience of the banking sector amidst the impact of the pandemic.

He said: "Let me say that the Nigerian banking system remains very strong and resilient. I will say that unlike in other climes, the Nigerian banking industry appears to be one of the well-regulated industries in the world today.

"Our prudential ratio has been prescribed for the banks and they are required to ensure that they abide by those prudential ratios - for instance, the non-performing loans ratio, the capital adequacy ratio, and the liquidity ratio."... Read more on All Africa

Source: All Africa