Banking sector remains safe, CIBN assures customers

The Chartered Institute of Bankers of Nigeria has reassured the bank customers of the safety and soundness of the Nigerian banking sector.

The reassurance, contained in a statement signed by the President/Chairman of the CIBN Council, Prof. Pius Olanrewaju, on Wednesday, came on the heels of claims that the Central Bank of Nigeria was set to revoke more banking licences after that of Heritage Bank.

CBN had denied this claim and reiterated that the Nigerian financial sector was sound and safe.

In a statement denying the claims, the apex bank said, it “unequivocally states that these allegations are false and intended to trigger panic in the financial system”.

“The Nigerian financial system remains safe, sound, and resilient. Our financial system remains on a solid footing, and the CBN will continue to take all necessary steps to maintain its safety and soundness,” CBN stressed.

Echoing the stance of the CBN, the CIBN stated, “We would like to allay the fears of bank customers and the generality of the public that the assertion is false and misleading even as the Central Bank of Nigeria which is the only body best suited to assess the health of financial institutions in Nigeria has debunked the claim.

“It is important to note that the Nigerian banking system is built on strong foundations, with rigorous regulatory frameworks and supervision aimed at safeguarding the interests of stakeholders and maintaining financial system stability.

“Consequently, we urge the public to continue to conduct their regular banking activities without hesitation or apprehension, bearing in mind that banks have commenced the process of implementation of the banking sector recapitalisation programme in compliance with CBN directive which will help to enhance their capital

The institute added that it was working with the regulators (CBN and Nigeria Deposit Insurance Corporation) and other stakeholders in the ecosystem to promote best practices and ensure that the banking sector remained resilient and sound.

One of the banks mentioned as likely to have its licence withdrawn had petitioned the security official and threatened legal action against the perpetrators of the falsehood.