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CBN Re-affirms Nigeria’s DMBs, Other Financial Institutions’ Soundness

The Central Bank of Nigeria (CBN) at the weekend reiterated the resilience, safety and soundness of Nigerian Deposit Money Banks (DMBs) and other financial institutions, stressing that all the licensed MFBs and others are operating based on global best practice standards.

The Acting Director, Corporate Communications Department of the Bank, Osita Nwanisobi, who made the clarification ahead of the apex bank’s 2-day Monetary Policy Committee (MPC) meeting scheduled to kick off tomorrow, said the Nigerian banking system remained very strong in spite of the ravaging impact of the COVID 19 pandemic on the global financial system.

The spokesman made this clarification during a media chat in response to some ill-founded news stories in the social media relating to the soundness of some Nigerian banks.

According to him, routine bank examinations and stress tests for financial institutions operating in the country indicated that no licensed DMB in the country is currently in distress, adding that the banks have adequate capital to absorb unexpected losses that may arise.

Nwanisobi further clarified that in line with the apex bank’s resolve to ensure adherence to prudential standards, it has been regularly monitoring the activities of banks in order to ensure that no individual or institution breaches the laid down guidelines.

The apex bank’s spokesman, therefore, advised the banking public to disregard any report insinuating insolvency in the nation’s banking sector.

This is even as he reiterated the desire of the apex bank to prioritize financial inclusion as a measured approach to increase the number of adults included in financial services provided by banks in Nigeria.

Nwanisobi therefore urged members of the banking public to take advantage of the services provided by the banks, particularly the intervention programmes initiated by the CBN, to enhance their economic status and contribute to overall national development.

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