Nigerian banks still stable amid COVID-19 pandemic: CBN
![CBN Governor, Godwin Emefiele. [CREDIT: Bloomberg]](https://i1.wp.com/gazettengr.com/wp-content/uploads/CBN-Governor-Godwin-Emefiele.jpg)
The Central Bank of Nigeria (CBN) says banks have remained stable, robust, and resilient despite the COVID-19 pandemic.
The Director, Banking Supervision of CBN, Haruna Mustafa, disclosed this at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop in Ibadan on Friday.
Mr Mustafa, represented by Adekunle Adeniji, the Assistant Director, Banking Supervision, CBN, said the Capital Adequacy Ratio (CAR) rose to 15.21 per cent as of August, Liquidity Ratio (LR) rose to 42.23 per cent.
He said the non-performing loan ratio improved from 6.58 per cent to 5.9 per cent as of August 2021, while banking system credit to the economy increased to 10.99 per cent between January and August.
Mr Mustafa further noted that the regulatory measures taken by CBN contributed to the growth.
He listed some interventions by the apex bank to lessen the impact of the pandemic to include a reduction in interest rates to five per cent.
Others are N50 billion target credit facility for households and Small and Medium Enterprises (SMEs) and re-enactment of Banks and Other Financial Institutions Act (BOFIA 2020) to strengthen the regulatory and resolution architecture for banks and other financial institutions.
The director added that CBN would continue to develop additional countercyclical policy options that could be utilised in periods of stress.
Mr Mustafa also explained that macro-prudential regulation and supervision were more critical now than ever.
“We expect financial services to be provided more in a digital manner. We will continuously update and assess our prudential rule books and policy to strengthen responses to economic and financial shocks,” said Mr Mustafa. “We will continue to deploy effective stress testing methodologies to detect vulnerabilities early to enable appropriate pre-emptive action.”
Mr Mustafa explained that the banking sector had also sustained the growth of key economic activities, which were impacted by the pandemic in agriculture, manufacturing, retail, healthcare, hospitality, and tourism.
(NAN)
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