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CBN says Nigerian banks insulated from global financial crisis

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By Samuel Bankole

The Central Bank of Nigeria (CBN) has assured that the Nigerian banking system remains reasonably insulated from the likely contagion impact of the global financial crisis in the wake of the recent collapse of the United States banking group Silicon Valley Bank and Signature Bank.

According to the governor of the CBN, Godwin Emefiele, Nigeria has been able to achieve stability in the financial sector as a result of “stringent micro- and macro-prudential guidelines.”

Emefiele said that the CBN has “ensured that individual banks and the banking industry in Nigeria have adequate buffers to ward off global contagion.”

“In addition to this, the MPC examined the possible impact of further policy rate hikes on the stability of the banking system and was convinced that further hikes would not adversely impact the stability of the banking system.”

“The Committee, however, called on the Bank’s management to strengthen its regulatory oversight on the banking system to ensure that the banking industry remains stable and resilient,” Emefiele said while briefing journalists on the outcome of the Monetary Policy Committee (MPC) rate-setting meeting on Tuesday.

READ ALSO: Nigeria approves the exemption of the telecom sector from 5% excise duty (Pantami).

On the naira reform policy, which has caused untold hardship in the country, Emefiele apologized to Nigerians for the glitches experienced while trying to effect various e-payment transactions.

The CBN governor admitted that some “isolated cases still persist,” but these cases were being resolved.

Members, however, remained aware of the ongoing challenges associated with the limits imposed on cash withdrawals in the face of frequent downtime in bank electronic transaction channels.

The committee thus called on other depository corporations, online payment platforms, and other stakeholders to ensure that the prevailing incidence of network failures is overcome in the immediate and short term.

This would ensure that the Naira Redesign and Cash Withdrawal Limit Policies lead to an improved inroad of the CBN Cashless program and efficiency of the transmission mechanism of monetary policy.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com, Newsroom +234 8033 964 138)

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