CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds
By Abiodun Folarin
The Central Bank of Nigeria (CBN) reiterates its strong commitment to safeguarding the stability and security of the Nigerian financial system.
The apex bank in a statement on Tuesday by its Acting Director, Corporate Communications, Hakama Sidi Ali, said CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.
She said, “The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient.
” In addition, the CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions to any foreseen issues.
On the Bank’s approach to Risk-Based Supervision, she said, CBN ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.
The CBN has also signed Memoranda of Understanding with countries hosting Nigerian banks’ subsidiaries. This enhances international regulatory cooperation, ensuring that Nigerian banks operate safely both domestically and abroad, in line with global banking regulations.
“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system”, she added.
