The Central Bank of Nigeria (CBN), has reaffirmed its strong commitment to maintaining the stability of the country’s financial system.

The assurance was provided by the apex bank in a statement released on Tuesday, 8 October 2024, by Mrs. Hakama Sidi-Ali, its acting Director of Corporate Communications.

According to Ali, the central bank has implemented multiple measures to protect public funds and preserve trust in banking activities. She listed these precautions as coordination with international regulators, risk-based monitoring, early warning systems, and frequent stress testing.

“To preserve the integrity of our financial system, the CBN actively makes sure banks abide by set rules and industry best practices. We perform regular stress testing to find potential weaknesses, assisting in ensuring the resilience of our financial institutions.”

“Furthermore, the CBN has put in place Early Warning Systems that proactively identify and manage new risks, enabling us to promptly handle any difficulties that are anticipated.

She continued, “The bank’s approach to risk-based supervision ensures that it concentrates its regulatory efforts on institutions that might represent the greatest risk to the financial system.”

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 added that the Memoranda of Understanding has been formed by the CBN with many nations that host the subsidiaries of Nigerian banks. She claims that this partnership improves regulatory coordination and guarantees that banks function within a secure environment in compliance with national and international banking laws.

Ali went on, “CBN is still committed to creating a safe banking environment where depositors can feel completely secure about the security of their money. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.”

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