As part of its commitments to ensure stable and reliable financial system in Nigeria, The Central Bank of Nigeria (CBN) has implemented approaches that will proactively detect and address emerging risks and issues; allowing it to provide timely solutions to any foreseen issues.
This was made known on Tuesday in a statement signed by its Ag Director of Corporate Communications, Ms Hannatu Sidi-Ali.
The approach, “Early Warning Systems,” according to the Apex bank, will ensure integrity, confidence and stability in the financial system and guarantee the safety of depositors funds.
It is carried out through the conduct of regular stress tests to identify potential vulnerabilities and to ensure that financial institutions are resilient.
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 statement added, “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.”
To ensure regulatory coordination and to ensure that Nigerian banks operate within safe and sound framework in accordance with banking regulations locally and internationally, the CBN affirmed that it has established Memoranda of Understanding (MOU) with the various countries where Nigerian banks’ subsidiaries are located.
This collaboration, according to the CBN, 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 Apex bank stated that it remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds, said it will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in the financial system.
