Don't Miss


Home   >   Business   >   Industries   >   Banking   >   Nigerian banks safe – CBN

Nigerian banks safe – CBN

By on March 10, 2015

The Central Bank of Nigeria has said the country’s Deposit Money Banks are safe and have no liquidity problems.

It based its assessment on the outcome a recent stress test conducted on the banks.

The CBN stated this in a statement on Sunday signed by the Director, Corporate Communications Department, Mr. Mu’azu Ibrahim.

The statement explained that from the unaudited results of the banks released so far, the economic headwinds had not significantly affected their profitability.

It said, “The Central Bank of Nigeria reaffirmed that the result of the stress tests revealed that the banks have adequate capital to absorb unexpected losses.

“The unaudited results of banks and the results released so far indicated that economic headwinds had not significantly affected returns.”

The CBN further stated the banks had been directed to have effective risk management system in place, especially price hedging.

The statement added that the CBN would continue to monitor the banks for sufficient internal retention of capital to serve as buffers.

The International Monetary Fund had last week commended the efforts of the CBN in ensuring sound financial system.

It stated, “Directors noted that financial soundness indicators remain above prudential norms, but the concentration of credit risks and foreign currency exposures call for continued close oversight.

“They welcomed progress in strengthening supervision and regulation, including cross border activities, and encouraged additional initiatives to foster financial market development.”

The IMF added that Nigeria’s economic data had been broadly adequate for surveillance, just as it agreed that tightening fiscal policy and allowing the exchange rate to depreciate while using some of the reserve buffers were appropriate responses to the recent fall in global oil prices.

 

[Punch]