Emefiele Speaks on Relation Between Nigerian Banks and Failed US Banks, Says Nigerian Banks Not Exposed

Emefiele Speaks on Relation Between Nigerian Banks and Failed US Banks, Says Nigerian Banks Not Exposed

  • The Central Bank of Nigeria Governor, Godwin Emefiele, has said that no Nigerian banks are affected by failed banks in the US
  • Emefiele noted that banks in Nigeria have kept to healthy prudential guidelines
  • He said no depositor would lose their fund as Nigerian banks have maintained healthy balance sheets with the CBN

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Godwin Emefiele, the Governor of the Central Bank of Nigeria, has stated that Nigerian banks are not directly exposed to collapsed Silicon Valley Bank (SVB) in the United States.

Emefiele stated this as he responded to questions at the CBN’s Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, March 21, 2023.

Emefiele, SVB, Nigerian banks
Governor of the Central Bank of Nigeria, Godwin Emefiele Credit: Bloomberg/Contributor
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Nigerian banks are healthy, says Emefiele

He said the CBN reviewed all bond portfolios of Nigerian banks and found that none of the banks were exposed to the failed bank.

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However, Emefiele failed to speak on the exposure to other US banks currently affected by the collapsed SVB, such as Credit Suisse.

Reports say the apex bank boss stated that Nigerian banks are healthy and have met all the prudential guidelines set by the CBN for the financial sector.

He stated that banks in Nigeria have already implemented CBN’s prudential guidelines, such as its cash reserve ratios, capital adequacy ratios, non-performing loans, and liquidity ratios.

Data shows Nigerian banks have all indices of healthy banks

According to Emefiele, Nigerian banks are owned by depositors and not shareholders. He said the CBN would do away with shareholders rather than make depositors lose their funds, saying bank customers lose more than shareholders.

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Available data shows that Nigerian banks have maintained a healthy cash reserve ratio of 43% of their cash, with CBN as a buffer in times of stress.

Emefiele stated that banks in Nigeria have non-performing loans of 4.2% and a capital adequacy ratio of 13.7% which is within the specified guidelines.

The liquidity and loan-to-deposit ratios are about 43% and 52%, respectively.

Per Emefiele, every depositor has lost no money to any Nigerian bank in the last 20 years.

CBN issues phone numbers, email address to report PoS operators charging higher than the approved rate

Legit.ng reported that the Central Bank of Nigeria (CBN) had released steps, an emergency number, and an email address where Nigerians could report Point of Sales (PoS) operators selling, issuing, or charging above the approved rates.

The apex bank had pegged N200 for withdrawals of up to N10,000 and N100 for withdrawals of N5,000 and below.

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Reports say CBN's Director of Governors' Department, Joseph Omayuku warned syndicates engaging in the illegal and illicit practice of selling the naira notes and charging exorbitant costs to desist.

Source: Legit.ng

Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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