Nigerian banks are safe, says CBN

… Debunks allegations against GTCO

The Central Bank of Nigeria (CBN) has set the record straight on the false allegations being peddled against Guaranty Trust Holding Company (GTCO) and its executive management by ‘faceless and unqualified entities,’ and stated that Nigerian banks were safe.

The apex bank in a statement on Tuesday, reassured the public that their deposits with Nigerian banks are safe and protected.

Read also: CBN sets record straight, debunks false allegations against GTCO

Hakama Sidi Ali, acting director of corporate communications at the CBN, in the statement, affirmed the bank’s commitment to the stability of the nation’s financial system.

“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.

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

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.

Read also: CBN reaffirms commitment to financial system stability, safety of depositors’ funds

The CBN restated its commitment to fostering a secure banking environment, assuring depositors of the continued safety of their funds.

The apex bank said it would continue to monitor developments and adapt its strategies to safeguard the financial interests of all Nigerians and stakeholders in the financial system.