The Central Bank of Nigeria (CBN) has reiterated its commitment to ensuring the stability of the Nigerian financial system.
The apex bank gave the reassurance in a statement by Hakama Sidi-Ali, its Acting Director, Corporate Communications on Tuesday, October 8, 2024.
According to Mrs Ali, the apex bank had put in place various safety nets to safeguard public funds and maintain confidence in banking operations.
She noted that these measures include regular stress testing, early warning systems, risk-based supervision and collaboration with foreign regulators.
“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,” she said.
The director explained that this targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.
She said that the CBN had also established Memoranda of Understanding with various countries where Nigerian banks’ subsidiaries are located.
According to her, this collaboration enhances regulatory coordination and ensures that banks operate within a safe and sound framework in line with banking regulations, both domestically and internationally.
Mrs Ali added that the apex bank has remained dedicated to fostering a secure banking environment where depositors could 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 emphasised.
