The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured that the country’s banking sector continues to be secure, stable, and robust.
He made this assertion during the 297th Monetary Policy Committee (MPC) meeting, which was held on September 23 and 24.
During the two-day meeting, the MPC analyzed recent economic and financial trends and evaluated its projections for the rest of the year.
The committee conducted a comprehensive review of key metrics reflecting the health of the banking sector, with the findings described as encouraging.
Despite ongoing challenges, the committee observed that the industry continues to demonstrate strength and perform well across various financial stability indicators.
Cardoso stated:
The banking sector experienced significant growth in the past year, leading to the federal government imposing a windfall tax on all foreign exchange (FX) transactions within the 2023 financial year.
The CBN had earlier reviewed the minimum capital base required by banks operating in Nigeria upwards in March 2024.
The committee, however, stressed the importance of maintaining robust supervisory oversight of the banking sector to ensure its ongoing contribution to the economy.
Discussions also focused on the best policy measures to sustain the downward trend in price levels, address emerging inflation risks, stabilize the exchange rate, and protect the banking system while simultaneously supporting the recovery of output growth.
It would be recalled that the committee also increased the monetary policy rate (MPR), which sets the benchmark for interest rates, from 26.75% to 27.25%.
Recognizing the critical role of foreign investments in driving economic recovery, Cardoso highlighted that fostering a conducive environment for capital inflows remains a key priority.
In related news, TimesNow.com.ng reported that Nigeria’s tier-one banks’ combined total asset value increased to N116.80 trillion as of the end of the first quarter of 2024.
The figure represented a 23.81% or N22.46 trillion increase compared to N94.33 trillion as of December 2023.
TimesNow.com.ng analysis showed that combined assets grew by N22.46 trillion among the tier-one banks surveyed in the last three months.
Source: TimesNow.com.ng
