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HomeEconomyCBN urges Nigerians to ignore reports on banks failing CAR stress test

CBN urges Nigerians to ignore reports on banks failing CAR stress test

Lagos, Dec. 12, 2023:The Central Bank of Nigeria (CBN) says media reports listing banks as failing the Capital Adequacy Ratio (CAR) stress test for international authorisation are false and should be disregarded.

The Acting Director, Corporate Communications, Mrs Hakama Sidi Ali, said in a statement posted on the CBN official website on Monday.

The statement assured the public and stakeholders about the continued stability and resilience of the Nigerian banking industry.

It urged Nigerians to always rely on official channels for information and avoid speculation based on unverified sources.

“The attention of the Central Bank of Nigeria 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,” the statement said.

The Capital Adequacy Ratio is a key financial metric used to assess the financial health and stability of banks.

It measures the amount of capital a bank holds relative to its risk-weighted assets, indicating its ability to absorb losses and continue operating during challenging economic conditions.

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