CBN Governor, Olayemi Cardoso

The Central Bank of Nigeria (CBN) has disclosed plans to implement regular stress tests for all commercial banks in the country as part of its effort to strengthen the banking sector and sustain the gains of recent recapitalisation exercises. Director of Banking Supervision at the CBN, Dr. Olubukola Akinwumi, revealed the development in an interview with TV Continental (TVC), noting that the move is aimed at ensuring that Nigerian banks remain resilient and well-capitalised in the face of changing economic conditions. According to Akinwumi, the apex bank will soon review key prudential and supervisory frameworks guiding the operations of banks in the country, adding that the step he is necessary to reflect current economic realities and to ensure that banks operate safely and responsibly. Prudential guidelines dictate how banks manage risks, including lending limits, classification of non-performing loans, and the maintenance of adequate capital buffers. Supervisory frameworks, meanwhile, govern how regulators monitor banks to ensure compliance with these rules. Akinwumi added that the review would strengthen oversight and ensure that banks continue to uphold global best practices in risk management.

Sun