September 24, 2023

A recent review of Nigerian banks’ bond portfolios revealed that the country’s central bank governor has said the institutions were not directly exposed to Silicon Valley Bank. Furthermore, the governor said that the Central Bank of Nigeria’s stringent guidelines help create a “very secure” banking system.

priority to depositors

According to Central Bank of Nigeria (CBN) Governor Godwin Emefile, a recent review of the bond portfolios of Nigerian banks revealed that the country’s financial institutions had no direct exposure to Silicon Valley Bank (SVB). Emefile, who made the comments during a meeting of the bank’s monetary policy committee, said the central bank’s so-called prudential guidelines help ensure that only healthy banks are allowed to operate.

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Some of the guidelines and considerations used by the CBN include non-performing loans (NPL) of banks which averaged 4.2% and capital adequacy ratio of 13.7%. According to Emefiele, these ratios, as well as the banks’ average liquidity and loan-to-deposit ratios of 43% and 52% respectively, indicate that Nigerian banks are “very safe”.

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Also, in his remarks published by Nairametrics, Emefele implied that the central bank has always given priority to bank customers and will remain so.

“We would rather settle shareholders than depositors lose money,” Emefiele said.

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To support this claim, Emefiele is quoted in the report which states that no Nigerian depositor has lost money to a failed bank since 2003.

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