The Central Bank of Nigeria (CBN) has reaffirmed to the public its unwavering commitment to ensuring the stability and resilience of the Nigerian financial system, reassuring Nigerians that their bank deposits are safe.
This assurance was conveyed in a press release issued on Tuesday, October 8, 2024, by Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications of CBN.
In the statement, the CBN emphasised the critical importance of maintaining public confidence in the banking sector, noting that regular stress tests are carried out on financial institutions to identify and address potential vulnerabilities.
“The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.”
“Stress testing is a vital component of its risk management strategy aimed at safeguarding the financial sector and protecting depositors’ funds.”
These tests help the apex bank detect emerging risks in the banking system, allowing them to take proactive measures to ensure stability.’’
“Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient,” the statement reads.
The statement further noted that CBN, in addition to stress tests, implemented Early Warning Systems to promptly detect potential threats to the financial system, thereby allowing timely interventions to maintain sector stability.
By Ibe Wada
