All deposits in Nigerian banks are secured, CBN assures Nigerians

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The Central Bank of Nigeria (CBN) has reassured Nigerians not to panic, stating that it has implemented policies to ensure the security of all funds deposited in financial institutions nationwide.

In a statement issued on Tuesday by the CBN’s Acting Director of Corporate Communications, Hakama Ali, the bank reiterated its steadfast commitment to maintaining the stability and reliability of the Nigerian financial system.

This announcement follows recent concerns that arose on Monday, warning customers of specific banks to withdraw their deposits immediately, as the CBN had revoked the licenses of those banks.

The statement 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.

“In addition, the CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions to any foreseen issues.

“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.”

Furthermore, the CBN said it has established Memoranda of Understanding 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.

“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system,” the statement added.