CBN
CBN

“This has been a subject of topical discussion of late. Let me confirm that there is no bank in Nigeria that has capital inadequacy today. The news around is all false,” Godwin Emefiele, the Central Bank of Nigeria (CBN) governor told reporters in Abuja.

CBN
CBN

There were reports that the CBN had given three commercial banks until June 2016 to recapitalize after failing to meet the required 10 percent capital adequacy ratio.

According to the reports, the three unnamed banks stand to lose their licences if they do not meet the apex bank’s deadline.

The governor told reporters that the apex bank has its own internal mechanism to monitor banks.

“We conduct monthly stress testing of the operations and activities of commercial banks,” he added.

“We stress-test their balance sheets on regular basis, using different scenarios to determine the strength and strategic health of a bank,” he said.

“So when we carry out our stress test and a bank has, say 10.5 percent liquidity ratio, we write an informal disclosure to the bank to let them know that they are close to the minimum ratio,” he added. Enditem

Source: Xinhua

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