CBN issues statement on financial stability of Access, GTB, Zenith, UBA, and other banks

The Central Bank of Nigeria (CBN) has assured the banking public that Nigerian banks remain resilient.

The apex stated this in a statement issued by its acting director of corporate communications, Hakama Sidi Ali.

Her statement followed reports that some licensed commercial banks in the country failed the capital adequacy ratio (CAR) test.

CAR is a comparison of the available capital that a bank has on hand to its risk-weighted assets. It is used to determine a bank's health.

Nigerian banks must maintain a minimum regulatory capital adequacy ratio (CAR) of 10%/15%1 on an ongoing basis.

The statement reads: “The attention of the Central Bank of Nigeria, CBN, has been drawn to reports in some media outlets suggesting that some licensed commercial banks in the country had failed the CBN’s Capital Adequacy Ratio, CAR, for international authorisation.

“We wish to clarify that the Nigerian banking industry remains resilient as key financial soundness indicators were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023.

“Furthermore, the CBN is engaging with various critical stakeholders to sustain the level of confidence in the Nigerian financial sector.

“We, therefore, appeal to Nigerians to disregard the media reports listing banks as failing the Capital Adequacy Ratio, CAR, stress test for international authorisation as the report did not emanate from the Central Bank of Nigeria, CBN.”