A current assessment of Nigerian banks’ bond portfolios confirmed that the establishments weren’t immediately uncovered to Silicon Valley Financial institution, the governor of the nation’s central financial institution has stated. As well as, the governor stated the Central Financial institution of Nigeria’s stringent tips assist to create a “very protected” banking system.
Precedence Given to Depositors
In keeping with the governor of the Central Financial institution of Nigeria (CBN), Godwin Emefiele, a current assessment of Nigerian banks’ bond portfolios confirmed that the nation’s monetary establishments had no direct publicity to Silicon Valley Financial institution (SVB). Emefiele, who made the remarks throughout a gathering of the financial institution’s financial coverage committee, added that the central financial institution’s so-called prudential tips assist to make sure that solely wholesome banks are allowed to function.
A few of the tips and issues utilized by the CBN embody banks’ non-performing loans (NPL), which averaged 4.2%, and the capital adequacy ratio of 13.7%. In keeping with Emefiele, these ratios, in addition to the banks’ common liquidity and loan-to-deposit ratios of 43% and 52% respectively, point out that Nigerian banks are “very protected.”
Additionally, in his remarks revealed by Nairametrics, Emefiele implied that the central financial institution has and can at all times prioritize financial institution clients.
“We are going to somewhat eliminate shareholders than make depositors lose cash,” Emefiele stated.
To help this declare, Emefiele is quoted within the report stating no Nigerian depositor has misplaced cash to a failed financial institution since 2003.
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