CBN reiterates commitment to stability of Nigeria’s financial system, safety of depositors’ funds

Busayo Samuel

The Central Bank of Nigeria (CBN) has reaffirmed its commitment to maintaining the stability and security of the nation’s financial system, emphasizing the safety of depositor funds.

In a media statement by Hakama Sidi Ali, the acting director of corporate communications , on Tuesday, the CBN highlighted the critical role of public confidence in banking operations.

‘’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. The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system.

Ali explained that this targeted strategy allows the Apex Bank maintain a robust oversight mechanism while promoting the overall health of the banking sector.

‘’Furthermore, the CBN has established Memoranda of Understanding with the various countries where Nigerian banks’ subsidiaries are located.

”This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.

‘’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.