The Central Bank of Nigeria, CBN, has given banks in the country a clean bill of health after running a stress test on the financial institutions.
The CBN, in a statement at the weekend, said, “the unaudited results of banks and the results released so far, indicated that economic headwinds had not significantly affected returns”, noting that banks had been directed to have effective risk management systems in place especially price hedging and that the CBN would continue to monitor banks to ensure sufficient internal retention of capital to serve as buffers.
DAILY POST recalls that The International Monetary Fund, IMF, had, in a statement last week, commended the efforts of the CBN in ensuring financial system soundness.
The IMF statement said: “Directors noted that financial soundness indicators remain above prudential norms, but the concentration of credit risks and foreign currency exposures call for continued close oversight.”
According to the statement, “the Directors also commended the unification of rDAS and the interbank foreign exchange market rates, noting that greater exchange rate flexibility could help cushion external shocks, noting that Nigeria’s economic data are broadly adequate for surveillance, just as it agreed that tightening fiscal policy and allowing the exchange rate to depreciate while using some of the reserve buffer were appropriate responses to the recent fall in global oil prices.”
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