By Ologeh Joseph Chibu
The Central Bank of Nigeria (CBN) has reaffirmed its commitment to stabilise the economy.
The apex bank maintained that the stability and security of the nation’s financial system to ensure that depositors’ funds remain safe remain its priority.
In a statement signed by the Acting Director of Corporate Communications, Mrs. Sidi Ali Hakama, the CBN emphasized that all deposits in Nigerian banks are secure, underscoring the pivotal role of confidence in banking operations.
According to the statement, the CBN regularly monitors banks to ensure they adhere to strict regulatory guidelines and best practices. To fortify the system against potential risks, the apex bank conducts regular stress tests aimed at identifying any vulnerabilities in the financial sector.
Additionally, the CBN has put in place Early Warning Systems to proactively detect and mitigate emerging risks, ensuring timely interventions when necessary.
The CBN’s Risk-Based Supervision model further targets institutions that pose higher risks to the financial system. This focused oversight ensures that banks maintain resilience while promoting the overall health of the sector.
Moreover, the CBN has established Memoranda of Understanding (MoUs) with countries where Nigerian banks have subsidiaries, enabling coordinated regulation. This collaboration ensures that Nigerian banks operate safely within international frameworks while adhering to both local and global banking standards.
The CBN reassured the public of its dedication to fostering a secure banking environment where depositors can have full confidence in the safety of their funds. It emphasized that it will continue to adapt and implement strategies aimed at safeguarding the financial interests of Nigerians and other stakeholders in the banking system.