Nigerian Banks Resilient, Safe And Sound — CBN

The Central Bank of Nigeria has asked the banking public to disregard any report alleging insolvency in the Nigerian banking sector, reiterating the resilience, safety, and soundness of Nigerian Deposit Money Banks (DMBs) and other financial institutions under its supervision.

This assurance comes ahead of the apex bank’s two days Monetary Policy Committee (MPC) which begins on Monday, and particularly in response to what it calls “false and unfounded stories” circulating in the social media attacking the soundness and safety of some Nigerian banks.

This was disclosed by the apex bank via a statement issued by the Acting Director, Corporate Communications Department of the Bank, Osita Nwanisobi, in Abuja. He stated that the Nigerian banking system had proven to be very sturdy in spite of the global challenges posed by the coronavirus pandemic (COVID-19).

He clarified that the routine bank examination and stress tests for financial institutions operating in the country indicate that no Deposit Money Bank (DMB) licensed by the CBN is currently under any form of financial distress. According to him, the banks have adequate capital to absorb unexpected losses that may arise.

In line with the Bank’s resolve to ensure adherence to prudential standards, Nwanisobi said the CBN continues to monitor closely, the activities of banks in order to ensure that no individual or institution breaches the laid down guidelines.

“The banking public should disregard any report alleging insolvency in the Nigerian banking sector,” the Acting Director advised.

He also reiterated the desire of the Bank to prioritize financial inclusion as a measured approach to increase the number of adults included in financial services provided by banks in Nigeria.

Nwanisobi, then encouraged the banking public to take advantage of the services provided by the banks, particularly the different intervention programmes initiated by the CBN, to enhance their economic status and contribute to overall national development.