EXCITING NEWS: TNG WhatsApp Channel is LIVE…
Subscribe for FREE to get LIVE NEWS UPDATE. Click here to subscribe!
The Central Bank of Nigeria (CBN) has denied some licensed commercial banks in the country failed the apex bank’s Capital Adequacy Ratio (CAR) test for international authorisation.
Recall that eight commercial banks in Nigeria were reported to have failed the CAR stress test recently conducted by the CBN.
The banks identified in the CBN’s quarterly economic report include First City Monument Bank Limited, First Bank of Nigeria Limited, Guaranty Trust Holding Company Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Zenith Bank Plc, among others.
The stress test evaluated the banks’ financial strength to endure adverse economic conditions or shocks.
The report indicated a decline in the banking system’s capital adequacy ratio, reportedly falling by 3.0 percentage points to 11.2 percent.
However, CBN has clarified that the key financial soundness indicators of the banks were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023.
“We wish to clarify that the Nigerian banking industry remains resilient as key financial soundness indicators were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023.
“Furthermore, the CBN is engaging with various critical stakeholders to sustain the level of confidence in the Nigerian financial sector,” the apex bank stated in a statement by Sidi Ali, Hakama (Mrs.), CBN’s Acting Director of Corporate Communications.
The statement added: “We, therefore, appeal to Nigerians to disregard the media reports listing banks as failing the Capital Adequacy Ratio (CAR) stress test for international authorisation as the report did not emanate from the Central Bank of Nigeria (CBN)”.