CBN Insists Nigerian Banks Are Safe, Sound

Ahead of the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) on Monday, July 26 – Tuesday, July 27, 2021, the financial system regulator has reiterated that Nigerian Deposit Money Banks (DMBs) and other financial institutions under its supervision are resilient, safe and sound.

Speaking with journalists in Abuja at the weekend, the Acting Director, Corporate Communications Department of the Bank, Osita Nwanisobi said the Nigerian banking system had proven to be very sturdy in spite of the global challenges posed by the coronavirus pandemic.

He made this clarification in response to certain stories circulating in social media attacking the soundness and safety of some Nigerian banks, describing the reports as false and unfounded.

According to him, routine bank examination and stress tests for financial institutions operating in the country indicated that no Deposit Money Bank licensed by the Central Bank of Nigeria is currently under any form of financial distress, adding that 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 the activities of banks in order to ensure that no individual or institution breaches the laid down guidelines.

He, therefore, advised the banking public to disregard any report alleging insolvency in the Nigerian banking sector.

Similarly, he 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, therefore, urged members of 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.