The CBN has established Memoranda of Understanding (MoUs) with countries hosting Nigerian banks’ subsidiaries to improve regulatory coordination and ensure safe and compliant banking operations both locally and internationally.
This was revealed in a statement by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications, on Tuesday.
The director explained that this targeted approach enables the CBN to maintain strong oversight while supporting the overall stability of the banking sector.
Commitment to stability in the financial system
The CBN further reaffirmed its commitment to maintaining stability in the Nigerian financial system, emphasizing that it has implemented various safeguards to protect public funds and uphold confidence in banking operations.
These measures include regular stress testing, early warning systems, risk-based supervision, and collaboration with foreign regulators.
The statement reads, “The Central Bank of Nigeria (CBN) wishes to reassure the public of its unwavering commitment to ensuring the stability and reliability of the Nigerian financial system. The CBN recognises the crucial role that confidence plays in banking operations and wants to affirm that all deposits in Nigerian banks are secure.”
“Furthermore, the CBN has established Memoranda of Understanding with the various countries where Nigerian banks’ subsidiaries are located. This collaboration enhances regulatory coordination and ensures that our banks operate within a safe and sound framework in accordance with banking regulations, both domestically and internationally.”
Ali added that the CBN is committed to ensuring a secure banking environment, giving depositors full confidence in the safety of their funds.
What you should know
A number of Nigerian Tier-1 banks have subsidiaries abroad, especially across the African continent. Beyond the continent, some Nigerian banks also have subsidiaries in the United States, United Kingdom, UAE and even in Asia.
- First Bank of Nigeria operates pan-African subsidiaries in the Republic of Congo, Ghana, The Gambia, Guinea, Sierra Leone, and Senegal.
- Zenith Bank has subsidiaries in Ghana, Sierra Leone, The Gambia, and South Africa, while Access Bank Plc operates in the Democratic Republic of the Congo, Ghana, Kenya, Nigeria, Rwanda, The Gambia, Sierra Leone, South Africa, Zambia, and the United Kingdom.
- Additionally, United Bank for Africa (UBA) has subsidiaries in Benin, Burkina Faso, Cameroon, Congo, Ivory Coast, Gabon, Guinea, Kenya, Mali, Senegal, Sierra Leone, Tanzania, Uganda, and Zambia.
- Nigerian banks play a prominent role in the financial sector across many African countries and economies. Recently, the President of Congo said four major commercial banks in the country are owned by Nigerians.
- Just yesterday, Access Bank Plc announced the acquisition of license to establish a subsidiary in Namibia.
