The Central Bank of Nigeria (CBN) has reaffirmed its commitment to maintaining the stability and integrity of the nation’s banking sector. In a statement released today, the CBN emphasized that all deposits in Nigerian banks are secure and that the institution is taking proactive measures to ensure the resilience of the financial system.
Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, stated, “The CBN recognizes the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient.”
These tests are integral to the CBN’s strategy to detect and address emerging risks before they impact the stability of the sector.
These systems proactively detect and address potential threats to financial stability, allowing the CBN to provide timely solutions.
This approach focuses regulatory efforts on institutions that may pose the highest risk to the financial system, ensuring robust oversight while promoting the overall health of the banking sector.
Additionally, the CBN has entered into Memoranda of Understanding with countries where Nigerian banks have subsidiaries. This international collaboration strengthens regulatory coordination and ensures that banks operate within safe and sound frameworks, adhering to both local and international banking regulations.
“The CBN is fully equipped to carry out its statutory duty of upholding a stable financial system in Nigeria. We assure the general public and depositors about the safety of their funds in Nigerian financial institutions. Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern,” Mrs. Ali added.
This statement from the CBN comes amidst concerns over the stability of the banking sector, as the central bank works to maintain public trust and ensure the soundness of the nation’s financial institutions.