CBN Reassures Depositors Of System Stability, Funds’ Safety

In a show of strong support for Guaranty Trust Holding Company (GTCO), the Central Bank of Nigeria (CBN) has backed the lender against false allegations against it and its executive management, reassuring the public of its commitment to ensuring the stability and reliability of the country’s financial system.

In a statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications, the apex bank reassured the public that their deposits with Nigerian banks are safe and protected.

The statement reads, “The Central Bank of Nigeria wishes to reassure the public of its unwavering dedication to ensuring the stability and reliability of the Nigerian financial system. We recognise the critical role that public confidence plays in banking operations, and we affirm that all deposits in Nigerian banks are secure.”

The CBN emphasised its continuous efforts to uphold strict regulatory standards across the banking sector. These efforts include regular stress tests aimed at identifying potential vulnerabilities and ensuring the resilience of financial institutions. The CBN has also implemented Early Warning Systems that proactively detect and address emerging risks, allowing for timely interventions to mitigate any issues that may arise.

“CBN directs its regulatory focus on institutions with the highest financial system risks through its Risk-Based Supervision framework. This targeted approach allows for efficient oversight and promotes the sector’s overall health and stability” the statement noted.

Moreover, the CBN highlighted its international regulatory collaborations, stating that it has established Memoranda of Understanding (MoUs) with the regulatory authorities of countries where Nigerian banks have subsidiaries. This cooperation ensures that Nigerian banks operate within safe and sound frameworks domestically and abroad, fully complying with global banking regulations.

The CBN remains committed to fostering a secure banking environment, assuring depositors of the continued safety of their funds. The apex bank will continue to monitor developments and adapt its strategies to safeguard the financial interests of all Nigerians and stakeholders in the banking system.