CBN Reaffirms Commitment to Financial System Stability
By Matthew Eloyi
The Central Bank of Nigeria (CBN) has reassured Nigerians of its continued commitment to maintaining the stability of the country’s financial system.
In a statement issued on Tuesday by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications, the apex bank highlighted several measures it has implemented to safeguard public funds and uphold confidence in banking operations.
According to Ali, the CBN has put in place various safety nets, including regular stress testing, early warning systems, and risk-based supervision, while collaborating with foreign regulators to ensure a resilient financial system.
“The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system,” she said.
She explained that regular stress testing is conducted to identify potential vulnerabilities, ensuring that financial institutions remain robust.
“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,” she added.
The bank’s approach to risk-based supervision, Ali said, focuses regulatory efforts on institutions that pose the highest risk to the financial system. This targeted strategy helps maintain a strong oversight mechanism while promoting the overall health of the banking sector.
She further noted that the CBN has signed Memoranda of Understanding (MoUs) with various countries where Nigerian banks have subsidiaries. This collaboration enhances regulatory coordination, ensuring that these banks operate safely and in compliance with both domestic and international banking regulations.
Ali also stressed that the CBN remains dedicated to fostering a secure banking environment where depositors can have full confidence 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 emphasised.