The governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has confirmed that Nigeria’s banking industry remains safe, sound, and stable.
This, he stated at the just-concluded 297th Monetary Policy Committee (MPC) meeting of the apex bank held on September 23 and 24.
Cardoso said the development demonstrated the committee’s unanimous stance on the sector’s resilience as the CBN reviews its approach to managing economic and financial challenges amid global uncertainties.
During the two-day session, the MPC reviewed recent economic and financial developments and assessed their outlook for the remainder of the year.
Key indicators of the banking sector’s health were thoroughly examined, and the results, he noted, were promising.
According to the committee, despite facing familiar headwinds, the industry remains robust, with satisfactory performance across various financial soundness indicators.
“Members assessed the performance of key financial soundness indicators and noted with satisfaction that despite familiar headway, the banking industry remains safe, sound and stable,” Cardoso stated.
“The committee, however, emphasised the need to sustain supervisory oversight on the industry to strengthen its continued support to the economy.
“Following these considerations, members deliberated on the optimal policy option to sustain the downward in price development, contain emergent risks to inflation, stabilise the exchange rate and safeguard the banking system while also shielding the recovery of output growth.”
The committee stressed that sustained efforts are required to achieve a positive real interest rate. By doing so, Nigeria could enhance its competitiveness in attracting international capital, which would play a critical role in improving the exchange rate.
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With foreign investments being a crucial component in the country’s economic recovery, Cardoso underscored creating a favourable environment for capital inflows remained a top priority.
“In addition, members noted that the real policy rate remains negative, even after the recent moderation in headline inflation.
“To attract investments into the economy, efforts must be sustained to achieve a positive real interest rate.
“This would enhance the economy’s competitiveness for international capital, thereby improving the exchange rates,” the CBN governor added.