CBN Says Banks Remain Stable, Resilient Despite Pandemic

The Central Bank of Nigeria (CBN) says banks in the country have remained stable, robust and resilient in spite of the COVID-19 pandemic.

Mr Haruna Mustafa, The Director, Banking Supervision of CBN said this on Friday at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop in Ibadan.

Mustapha, represented by Mr Adekunle Adeniji, the Assistant Director, Banking Supervision, CBN, said the Capital Adequacy Ratio (CAR) rose to 15.21 per cent as at August, Liquidity Ratio (LR) rose to 42.23 per cent.

He said non-performing loan ratio improved from 6.58 per cent to 5.9 per cent as at August 2021, while banking system credit to the economy increased to 10.99 per cent between January and August.

He listed some interventions by the apex bank to lessen the impact of the pandemic to include reduction in interest rates to five per cent.

Mustafa explained that macro-prudential regulation and supervision was more critical now than ever.

He said

“We expect financial services to be provided more in a digital manner.

“We will continuously update and assess our prudential rule books and policy to strengthen responses to economic and financial shocks.

“We will continue to deploy effective stress testing methodologies to detect vulnerabilities early to enable appropriate pre-emptive action,”.

Mustafa explained that the banking sector had also sustained the growth of key economic activities, which were impacted by the pandemic in the agriculture, manufacturing, retail, healthcare, hospitality and tourism sectors.

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