CBN reaffirms commitment to safety of funds, implements warning systems to detect risks

The Central Bank of Nigeria (CBN) says it is committed to maintaining a stable financial system while ensuring the safety of depositors’ funds.

Hakama Sidi Ali, the acting director of corporate communications at CBN, gave the assurance in a statement on Tuesday — emphasising that confidence is crucial in banking operations.

Ali also said the apex bank has introduced the early warning systems to proactively detect and address emerging risks, allowing the CBN  to provide timely solutions to any foreseen issues.

“The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure,” Ali said.

“The CBN actively ensures that banks adhere to established regulations and best practices to maintain the integrity of our financial system.

“Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient.

“The Bank’s approach to Risk-Based Supervision ensures that it focuses its regulatory efforts on institutions that may pose the highest risk to the financial system.

“This targeted strategy allows it to maintain a robust oversight mechanism while promoting the overall health of the banking sector.”

Speaking further on the regulator’s effort to safeguard funds, Ali said a memoranda of understanding (MoU) has been signed with the various countries where Nigerian banks’ subsidiaries are located.

“This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally,” she added.

The communications director also said the financial regulator remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds.

Ali said the CBN would continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.