MON, DEC 11 2023-theGBJournal|The Central Bank of Nigeria (CBN) has reiterated the resilience of the Nigerian banking industry following recent reports that suggests that some licensed commercial banks in the country had failed the CBN’s Capital Adequacy Ratio (CAR) for international authorisation.
The CBN gave the assurance through a statement on Monday, signed by Ag. Director, Corporate Communications, Mrs Sidi Ali, Hakama, saying ”that the 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.”
Capital adequacy Ratio or capital risk, is the ratio of a bank’s capital to its risk or a comparison of its available capital on hand to its risk-weighted assets. It shows whether a bank has enough funds to cover losses and stay solvent under extreme difficult conditions.
The apex bank noted also that it is engaging with various critical stakeholders to sustain the level of confidence in the Nigerian financial sector.
”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).
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