Nigerian Banks are Resilient, Safe, Says CBN as MPC Meeting Holds Monday

By James Emejo

The Central Bank of Nigeria (CBN) Saturday reiterated the resilience, safety and soundness of Nigerian Deposit Money Banks (DMBs) as well as other financial institutions under its supervision.

The apex bank gave the assurance ahead of its Monetary Policy Committee (MPC) meeting scheduled for Monday and Tuesday.

CBN said the assurance was against the backdrop of “false and unfounded stories circulating in the social media attacking the soundness and safety of some Nigerian banks.”

CBN acting Director, Corporate Communications Department, Mr. Osita Nwanisobi, told journalists that the banking system had proven to be sturdy in spite of the global challenges posed by the COVID-19 pandemic.

He said routine bank examination and stress test for financial institutions operating in the country indicated that no bank licensed by the CBN was currently under any form of financial distress.

Nwanisobi further stressed that the banks had adequate capital to absorb unexpected losses that may arise.

He pointed out that the central bank had continued to monitor the activities of banks in order to ensure that no individual or institution breached the laid down guidelines in line with the bank’s resolve to ensure adherence to prudential standards.

While also calling on the banking public to disregard any report alleging insolvency in the Nigerian banking sector, the CBN director reiterated the desire of the bank to prioritise financial inclusion as a measured approach to increase the number of adults included in financial services provided by banks in the country.

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

The apex bank had recently reassured the banking public about the soundness and safety of the financial system.

The CBN governor, Mr. Godwin Emefiele, recently reassured the banking public of the resilience of the banking sector amidst the impact of the Covid-19 pandemic.