absolved Deposit Money Banks of having
liquidity problems, stating that the stress
test conducted in the banking sector
revealed that Nigerian banks were safe.
The apex bank stated this in a statement
by the the Director, Corporate
Communications Department, Mr Mu’azu
Ibrahim.
The statement explained that from the
unaudited results of banks released so far,
the economic headwinds had not
significantly affected their profitability.
It said, “Following the recent top-down
stress tests of Deposit Money Banks
carried out by it, the Central Bank of
Nigeria reaffirmed that the result of the
stress tests revealed that the banks have
adequate capital to absorb unexpected
losses.
“The unaudited results of banks, and the
results released so far, indicated that
economic headwinds had not significantly
affected returns.”
The statement stated that banks had been
directed to have effective risk management
system in place especially price hedging.
It added that the CBN would continue to
monitor banks to ensure sufficient internal
retention of capital to serve as buffers.
The International Monetary Fund had last
week commended the efforts of the CBN
in ensuring financial system soundness.
It said, “Directors noted that financial
soundness indicators remain above
prudential norms, but the concentration of
credit risks and foreign currency exposures
call for continued close oversight.
“They welcomed progress in strengthening
supervision and regulation, including of
cross border activities, and encouraged
additional initiatives to foster financial
market development, including of hedging
instruments, and improve financial
inclusion.”
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