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The Central Bank of Nigeria (CBN) has discredited recent media reports suggesting that certain licensed commercial banks in the country failed the Capital Adequacy Ratio (CAR) stress test for international authorization. In a statement released on Monday by Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, the central bank urged the public to disregard these reports, emphasizing their inaccuracy.
The statement, posted on the CBN’s official website, affirmed the stability and resilience of the Nigerian banking industry. It clarified that the key financial soundness indicators, as outlined in the CBN’s most recent Economic Report of 2023, were well within the regulatory thresholds. The CBN assured stakeholders and the public that the Nigerian banking sector remains robust.
The CBN emphasized the ongoing engagement with critical stakeholders to maintain confidence in the financial sector, reinforcing its commitment to the stability of the industry. The public was urged to rely on official channels for accurate information and cautioned against speculating based on unverified sources.
“The Capital Adequacy Ratio (CAR) stress test for international authorization remains intact, and the recent media reports suggesting failure by some banks are baseless and did not originate from the Central Bank of Nigeria,” stated the release.
The Capital Adequacy Ratio is a crucial financial metric used to evaluate the financial health and stability of banks. It gauges the amount of capital a bank holds in proportion to its risk-weighted assets, indicating its capacity to absorb losses and sustain operations in challenging economic conditions. The CBN’s assertion aims to dispel any concerns and reinforce the confidence of the public and stakeholders in the resilience of the Nigerian banking industry.
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