CBN Stands Firm in Support of GTCO, Reassures Public on Safety of Bank Deposits

In a strong display of support for Guaranty Trust Holding Company (GTCO) and to counter unfounded allegations circulating in the media, the Central Bank of Nigeria (CBN) issued a press release today, reaffirming the safety of deposits held in Nigerian banks.

The statement, titled “CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds,” was signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali. It opens with a resolute assurance to the public: “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 release emphasizes the importance of maintaining public confidence in banking operations, declaring that “all deposits in Nigerian banks are secure.” It outlines the CBN’s active role in ensuring that financial institutions adhere to established regulations and best practices, which are essential for preserving the integrity of the financial system. Regular stress testing is conducted to identify potential vulnerabilities, thereby reinforcing the resilience of banks in the country.

To fulfill its oversight responsibilities, the CBN elaborates on its comprehensive monitoring of licensed banks in Nigeria and their offshore operations. The statement notes, “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 employs a Risk-Based Supervision approach, focusing regulatory efforts on institutions that may pose the highest risk to the financial system. This targeted strategy aims to maintain robust oversight while promoting the overall health of the banking sector.

Moreover, the CBN has established Memoranda of Understanding with various countries where subsidiaries of Nigerian banks operate. This collaboration enhances regulatory coordination, ensuring that these banks function within a safe and sound framework, complying with both domestic and international banking regulations.

In conclusion, Mrs. Sidi Ali emphasized the CBN’s commitment to creating a secure banking environment, stating, “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.”