The Central Bank of Nigeria (CBN) has established Memoranda of Understanding (MoUs) with countries hosting Nigerian banks’ subsidiaries to enhance regulatory coordination and ensure safe banking operations both locally and internationally.
This development was disclosed in a statement on Tuesday by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications at the CBN. According to Sidi-Ali, the strategic move is aimed at strengthening the CBN’s oversight while bolstering the stability of Nigeria’s banking sector.
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In her statement, Sidi-Ali emphasized that the CBN remains committed to maintaining stability in the country’s financial system. She highlighted the implementation of various measures, such as regular stress testing, early warning systems, risk-based supervision, and collaboration with foreign regulators, as part of the bank’s efforts to safeguard public funds and uphold confidence in the banking industry.
“The Central Bank of Nigeria (CBN) wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system,” the statement read. “The CBN recognizes the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.”
Sidi-Ali also noted that the MoUs with host countries would enhance regulatory coordination, ensuring that Nigerian banks operate within a safe and sound framework in accordance with both domestic and international banking regulations.
“The CBN is committed to ensuring a secure banking environment, giving depositors full confidence in the safety of their funds,” she added.
This move by the CBN underscores its dedication to fostering a stable and resilient banking sector, capable of withstanding local and global challenges while protecting depositors’ interests.