The Central Bank of Nigeria has signed Memoranda of Understanding with countries that host subsidiaries of Nigerian banks.
This initiative aims to enhance regulatory coordination and ensure safe banking operations both locally and internationally.
This was disclosed in a statement by the Acting Director of Corporate Communications on Tuesday.
She stated that this approach allows the CBN to maintain strong oversight while promoting stability in the banking sector.
The CBN further reiterated its commitment to ensuring stability in the Nigerian financial system by implementing several safeguards to protect public funds and bolster confidence in banking operations.
The key measures include regular stress testing, early warning systems, risk-based supervision, and collaboration with foreign regulators.
The statement reads, “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 CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.
“Furthermore, the CBN has established Memoranda of Understanding with the various countries where Nigerian banks’ subsidiaries are located. This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.”
Ali emphasized the CBN’s commitment to fostering a secure banking environment that instills confidence in depositors regarding the safety of their funds.
Several Tier-1 Nigerian banks have established subsidiaries both within Africa and internationally.
For instance, First Bank of Nigeria has a presence in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra Leone, and Senegal.
Zenith Bank operates in Ghana, Sierra Leone, The Gambia, and South Africa, while Access Bank Plc has a broader reach, with subsidiaries in the Democratic Republic of the Congo, Ghana, Kenya, Nigeria, Rwanda, The Gambia, Sierra Leone, South Africa, Zambia, and the UK.
Additionally, United Bank for Africa (UBA) has a significant presence across the continent, with subsidiaries in Benin, Burkina Faso, Cameroon, Congo, Ivory Coast, Gabon, Guinea, Kenya, Mali, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia.
