CBN reassures public of deposit safety, debunks allegations against GTCO

The apex bank reassures the public of deposit safety, debunking false claims against GTCO while highlighting regulatory oversight.

[dropcap]T[/dropcap]he Central Bank of Nigeria (CBN) has strongly reassured the public of the safety of their deposits, debunking false allegations aimed at Guaranty Trust Holding Company (GTCO) and its Executive Management.

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The CBN made this clear in a press release issued today, reaffirming its commitment to maintaining the stability and reliability of Nigeria’s financial system.

In a statement titled “CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds”, signed by Acting Director of Corporate Communications, Hakama Sidi Ali (Mrs.), the apex bank began by reiterating that deposits in Nigerian banks are secure.

“The Central Bank of Nigeria (CBN) wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system,” the statement declared.

This comes in response to allegations from faceless and unqualified entities, spreading unfounded claims about the financial sector.

The statement also highlighted the importance of public confidence in banking operations.

The CBN assured the public that it conducts regular stress tests and ensures banks follow best practices to maintain financial stability.

“The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure. Regular stress testing is conducted to identify potential vulnerabilities, helping to ensure that our financial institutions are resilient,” the CBN stated.

In its regulatory oversight, the CBN stressed that it employs a Risk-Based Supervision approach, focusing on banks that pose the highest risk to the financial system. This approach, combined with Early Warning Systems, helps the bank detect and address emerging risks.

“The CBN has implemented Early Warning Systems that proactively detect and address emerging risks, allowing us to provide timely solutions,” the statement noted.

Additionally, the CBN’s collaboration with international regulators through Memoranda of Understanding ensures that Nigerian banks’ offshore operations remain secure and sound.

Mrs. Ali emphasised the CBN’s dedication to fostering a secure banking environment.

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“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds,” she said, assuring the public that the CBN will continue to adapt its strategies to safeguard Nigeria’s financial system.