CBN reassures Nigerians of financial system stability amidst concerns

By Temi Olowu

The Central Bank of Nigeria (CBN) has reiterated its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system.

In a statement released by the regulatory bank’s acting director of corporate communications, Hakama Sidi-Ali, on Tuesday noted that CBN recognizes the crucial role of public confidence in banking operations and affirms that all deposits in Nigerian banks are secure.

To maintain the integrity of the financial system, the CBN actively ensures that banks adhere to established regulations and best practices.

The statement noted that regular stress testing is conducted to identify potential vulnerabilities and ensure the resilience of financial institutions.

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Additionally, it said that the CBN has implemented Early Warning Systems to proactively detect and address emerging risks.

The CBN’s Risk-Based Supervision approach focuses regulatory efforts on institutions with the highest financial system risks, ensuring efficient oversight and promoting the overall health of the banking sector.

The spokesperson also disclosed that the CBN has established Memoranda of Understanding with regulatory authorities in countries where Nigerian banks have subsidiaries.

This collaboration enhances regulatory coordination and ensures that Nigerian banks operate within a safe and sound framework both domestically and internationally.

The CBN remains dedicated to fostering a secure banking environment and will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders.