The Central Bank of Nigeria has released a strong affirmation of the security of cash within Nigerian banks, highlighting the country’s banking sector’s soundness.
Amid widespread unconfirmed rumours, not originating with the CBN, raising concerns about the health of Nigerian banks, the Central Bank of Nigeria asked the people not to panic and to continue with their usual banking activity, reports Daily Trust.
To ease people’s anxieties and comfort them, the CBN emphasized its readiness and capability to carry out its stated role of maintaining a stable financial system in Nigeria. This statement by the CBN responds to the concern caused by unverified information and seeks to reassure the public about the safety and stability of the country’s banking industry.
“The Central Bank of Nigeria has noticed reports, in certain media outlets, about a recommendation for the federal government to take over some CBN-supervised financial institutions,” said the apex bank’s acting Director, Corporate Communications, Hakama Sidi-Ali, in a statement issued on Wednesday.
“To avoid any doubt, Nigerian banks are still safe and sound. The CBN advises the public to go about their daily lives without getting disturbed by reports regarding the health of Nigerian banks that have not come from the CBN. “The CBN is fully equipped to carry out its statutory duty of ensuring the stability of Nigeria’s financial system.
“We assure the general public and depositors that their funds are safe in Nigerian financial institutions.
“Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern.”
This statement follows a report by the CBN’s special investigator, Jim Obazee, alleging that Godwin Emefiele, the former governor of the federal bank, used proxies to establish two financial institutions.
According to the report, Emefiele utilised proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without providing any proof of payment.
As a result, it recommended that the federal government reverse the sale and take over the banks.
The Central Bank of Nigeria has released a strong affirmation of the security of cash within Nigerian banks, highlighting the country’s banking sector’s soundness.
Amid widespread unconfirmed rumours, not originating with the CBN, raising concerns about the health of Nigerian banks, the central bank of Nigeria asked the people not to panic and to continue with their usual banking activity. To ease people’s anxieties and comfort them, the CBN emphasized its readiness and capability to carry out its stated role of maintaining a stable financial system in Nigeria. This statement by the CBN responds to the concern caused by unverified information and seeks to reassure the public about the safety and stability of the country’s banking industry.
“The Central Bank of Nigeria has noticed reports, in certain media outlets, about a recommendation for the federal government to take over some CBN-supervised financial institutions,” said the apex bank’s acting Director, Corporate Communications, Hakama Sidi-Ali, in a statement issued on Wednesday.
“To avoid any doubt, Nigerian banks are still safe and sound. The CBN advises the public to go about their daily lives without getting disturbed by reports regarding the health of Nigerian banks that have not come from the CBN. “The CBN is fully equipped to carry out its statutory duty of ensuring the stability of Nigeria’s financial system.
“We assure the general public and depositors that their funds are safe in Nigerian financial institutions.
“Bank customers are therefore advised to proceed with their banking transactions as usual, as there is no cause for concern.”
The chairman of the Senate Committee on Capital Market, Senator Osita Izunaso, has said the recent bank capitalisation comes with unique risks, especially when banks opt for the private placement route.
The Central Bank of Nigeria had on Thursday announced new guidelines on its recapitalisation policy for banks, directing commercial banks with international authorisation to increase their capital base to N500 billion, and national banks, N200 billion.
Izunazo, in a statement yesterday, noted that the CBN should intensify efforts to ensure that laundered funds are not used to recapitalise the banks and that only fit and proper persons end up as significant shareholders.
“This risk is minimised when banks go through the stock market, which offers a screening layer, in addition to that carried out by the CBN,” he stated.
The lawmaker commended the CBN for the recapitalisation programme, and assured of the support of his committee in ensuring its successful implementation.
He said the adoption of tiered minimum capital requirements in respect of international, national and regional authorisation was commendable, unlike the uniform capital base of N25 billion, which applied in the 2005 banking recapitalisation exercise.
