QUICK LINKS

×
  • Business - Companies
  • Updated: March 16, 2023

Ensure Close Monitoring Of Regulations — CBN To Banks

Godwin Emefiele, the Governor of the Central Bank of Nigeria (CBN), has urged the governors of African central banks and other financial sector regulators to be more vigilant in their regulatory and supervisory roles to forestall any run on banks in their respective jurisdictions.

According to a statement issued by CBN's acting director of communications, Isa Abdulmumin, Emefiele gave the charge yesterday at the opening of the 2023 African Central Bank Conference held at the Global Leadership Centre, Johannesburg, South Africa.

Speaking on the current global dynamics and specific policy developments in Nigeria to address emerging shocks, he advised central banks on the continent to draw lessons from the recent failure of Silicon Valley Bank (SVB) and Signature Bank in the United States of America, by putting in place regulations that will prevent any run on banks in their countries.

Emefiele, while sharing Nigeria’s experience in regulating banks, noted that the threats posed to the financial system necessitated the release of new guidelines and regulations to tackle potential infringements and, in the process, protect depositors’ funds as well as promote greater transparency in the sector.

According to him, regulators must be alive to their responsibilities by ensuring that banks under their regulatory watch are financially healthy and do not suffer a similar fate as the Silicon Valley Bank, which, until its collapse recently, catered to many of the world’s most powerful tech investors.

On Friday, March 10, banking regulators shut down Silicon Valley Bank, after the bank suffered a sudden, swift collapse, marking the second-largest in US history.

Although, two days prior, SVB signalled that it was facing a cash crunch.

It first tried to raise money by selling shares and then it tried to sell itself, but the whole thing spooked investors, and ultimately, it went down.

Related Topics

Join our Telegram platform to get news update Join Now
Felicia Abisola  Olamiji
Felicia Abisola Olamiji

  A graduate of English Language from Olabisi Onabanjo University, passionate about learning new...

More From this Author

COMPANIES PROFILE

niger insurance plc Financial Services

Niger Insurance Plc was established in August 1962 as a specialist Life Company ...

LEARN MORE
nigeria energy sector fund Financial Services

he Nigeria Energy Sector Fund Plc was incorporated on October 19, 1998, for the ...

LEARN MORE
npf microfinance bank plc Financial Services

NPF Microfinance Bank Plc Formerly known as NPF Community Bank Ltd, was incorpor...

LEARN MORE
fbn holdings plc Financial Services

FBN Holdings Plc. is a non-operating financial holding company of one of the lar...

LEARN MORE

0 Comment(s)

SPONSORED

See this post in...