The Central Bank of Nigeria has assured bank customers that banks in the country have remained stable, robust and resilient in spite of the COVID-19 pandemic.
Speaking at the ongoing Financial Correspondents Association of Nigeria workshop in Ibadan on Friday, CBN Director, Banking Supervision, Mr Haruna Mustafa, said the Capital Adequacy Ratio rose to 15.21 per cent as at August, while Liquidity Ratio rose to 42.23 per cent.
Mustapha, who was represented by Mr Adekunle Adeniji, the Assistant Director, Banking Supervision, CBN, said the non-performing loan ratio improved from 6.58 per cent to 5.9 per cent as at August 2021, while banking system credit to the economy increased to 10.99 per cent between January and August.
Mustafa noted that the regulatory measures taken by CBN contributed to the growth, and listed some interventions by the apex bank to lessen the impact of the pandemic to include reduction in interest rates to five per cent.
“Others are: N50 billion target credit facility for households and Small and Medium Enterprises 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 said CBN would continue to develop additional counter cyclical policy options that could be utilised in periods of stress.
Mustafa explained that macro-prudential regulation and supervision was 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.
“We will continue to deploy effective stress testing methodologies to detect vulnerabilities early to enable appropriate pre-emptive action,” he said.
Mustafa explained that the banking sector had also sustained the growth of key economic activities, which were impacted by the pandemic in the agriculture, manufacturing, retail, healthcare, hospitality and tourism sectors.