CBN Reaffirms Commitment to Financial System Stability, Says Depositors’ Funds Safe

•CIBN, bank CEOs seek end to social media attacks

Nume Ekeghe

The Central Bank of Nigeria (CBN) has once again reiterated its unwavering commitment to ensuring the stability, safety, and soundness of Nigeria’s financial system.

Amid growing concerns over the global economic environment and the potential risks faced by the banking sector, the CBN assured the public that depositors’ funds are secure, emphasising its proactive measures to maintain financial stability.

In a statement, the Acting Director of Corporate Communications, CBN, Hakama Sidi Ali, reaffirmed the critical importance of maintaining public confidence in Nigeria’s banking system.

The CBN spokesperson stated: “The CBN wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system.

“The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.

“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. This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.”

It further states that the CBN’s approach extends beyond domestic borders, as it has established Memoranda of Understanding (MoUs) with foreign regulators where Nigerian banks have subsidiaries.

“This enhances the central bank’s cross-border regulatory coordination, ensuring that Nigerian financial institutions maintain safety and soundness across international operations.

 “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.”

Also yesterday, the Chartered Institute of Bankers of Nigeria (CIBN) and the Body of Banks’ Chief Executive Officers expressed concerns over the growing wave of criticisms directed at Nigerian banks on social media.

In a joint statement, they emphasised the vital role that the banking sector plays in Nigeria’s economy and called for a more balanced perspective, urging the public to recognise the industry’s contributions to national development.

The statement highlighted that Nigeria’s banking sector was one of the most heavily regulated industries in the country.

According to the CIBN, governed by the CBN and other regulatory bodies, including the Nigerian Exchange Group (NGX), Securities and Exchange Commission (SEC), Financial Reporting Council (FRC), and Nigeria Deposit Insurance Corporation (NDIC), Nigerian banks adhere to strict regulatory standards that promote transparency, accountability, and integrity.

The statement jointly signed by the Chairman of the Body of Banks’ CEOs in Nigeria, Dr. Oliver Alawuba, CIBN President, Prof. Pius Deji Olanrewaju, noted that inspite of social media criticisms, Nigerian banks have consistently garnered strong investor confidence, making the sector a preferred choice for both retail and institutional investors.

According to the CIBN and the Body of Bank CEOs, the industry’s resilience was underpinned by the trust of its customers and the professionals within the sector, many of whom are certified both nationally and internationally.

Alawuba, said: “The banking sector plays a pivotal role in Nigeria’s economic growth. The sector’s intermediary role helps drive development, contributing significantly to individuals, businesses, and society at large.”

They also pointed out that grievances or concerns about banking operations should be channeled through appropriate regulatory bodies, such as the CBN and NDIC, which are equipped to handle complaints impartially.

Resorting to social media to voice grievances, the organisations warned, could undermine the credibility of the banking system and unfairly damage the reputation of institutions that play a critical role in Nigeria’s economy.

“We urge individuals engaged in such actions to desist and consider the facts before making accusations,” the CIBN and the CEOs stated.

“The banking sector remains committed to delivering the highest standards of service, guided by the stringent regulations that govern the industry. “Together, we can foster an environment of trust and collaboration, recognising the positive impact of a professional and globally competitive banking sector,” they added.