The governor of the Central Bank of Nigeria said that a recent review of Nigerian banks’ bond portfolios showed that the banks have no direct exposure to Silicon Valley Bank He stated. The governor also said that the Central Bank of Nigeria’s strict guidelines have helped create a “very secure” banking system.
Priority to Depositors
Central Bank of Nigeria (CBN) Governor Godwin Emefiele says a recent review of Nigerian banks’ bond portfolios revealed that no Nigerian financial institution has direct exposure to Silicon Valley Bank (SVB). Emefiele, speaking at a meeting of the central bank’s Monetary Policy Committee, added that the central bank’s so-called prudential guidelines will help ensure that only sound banks are allowed to operate.
The guidelines and considerations used by the CBN include an average bank non-performing loans (NPL) of 4.2% and a capital adequacy ratio of 13.7%. According to Emefiel, these ratios, plus the banks’ average liquidity and loan-to-deposit ratios of 43% and 52%, respectively, indicate that Nigerian banks are “very safe.”
Also, in remarks released by Nairametrics, Emefiele implied that the central bank has been and will continue to prioritize bank customers.
“We would rather get rid of our shareholders than let our depositors lose money,” Emefiele said.
In support of this claim, Emefiele is quoted in the report as saying that no Nigerian depositor has lost money in a failed bank since 2003.
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