The Central Bank of Nigeria (CBN) has reiterated its commitment to ensuring the stability and reliability of the Nigerian financial system. This reassurance comes in a statement signed by Hakama Sidi Ali, the acting director of corporate communications at the CBN.
The CBN emphasizes the importance of confidence in banking operations and affirms that all deposits in Nigerian banks are secure. “The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system,” the statement read. It highlighted that regular stress testing is conducted to identify potential vulnerabilities, ensuring the resilience of financial institutions.
The CBN has also implemented Early Warning Systems designed to proactively detect and address emerging risks, enabling timely solutions to any anticipated issues.
In response to recent discussions on financial stability, the statement noted, “The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.”
Additionally, the CBN has established Memoranda of Understanding with countries where Nigerian banks have subsidiaries. This collaboration enhances regulatory coordination and ensures that these banks operate within a safe framework in line with both domestic and international banking regulations.
“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds,” the statement concluded. The Bank will continue to monitor and adapt its strategies to safeguard the financial interests of all Nigerians and stakeholders within the financial system.