The Central Bank of Nigeria (CBN) has categorically refuted media reports claiming that certain banks failed the Capital Adequacy Ratio (CAR) stress test for international authorization. In an official statement released on Monday, Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at CBN, emphasized the falsity of these reports and urged the public to disregard them.
The statement, posted on the CBN’s official website, assured the public and stakeholders of the ongoing stability and resilience of the Nigerian banking industry. It called for reliance on official channels for accurate information, cautioning against speculation based on unverified sources.
The CBN clarified that the Nigerian banking industry remains robust, with key financial soundness indicators well within regulatory thresholds, as highlighted in the CBN’s most recent Economic Report of 2023. The bank is actively engaging with critical stakeholders to maintain confidence in the Nigerian financial sector.
The Capital Adequacy Ratio is a critical financial metric used to evaluate the financial health and stability of banks. It assesses the amount of capital a bank holds in relation to its risk-weighted assets, indicating its capacity to absorb losses and sustain operations during challenging economic conditions.
The CBN’s statement emphasizes the importance of relying on accurate and official information, emphasizing the resilience of the Nigerian banking sector and dispelling any concerns raised by speculative media reports.