No Nigerian Bank Affected by Silicon Valley Bank – Central Bank Governor

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The Governor of the Central Bank of Nigeria has stated that a review of the nation’s banking sector revealed that no institution had any direct exposure to Silicon Valley Bank. Furthermore, the CBN leader noted that the stringent guidelines in place make the financial industry in Nigeria a “very safe” one.

Depositors Put First

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), recently stated that a review of the nation’s banking sector showed that no institution had direct exposure to Silicon Valley Bank (SVB). During a meeting of the bank’s monetary policy committee, Emefiele also said that the CBN’s prudent regulations help to ensure that only healthy banks are allowed to operate.

The CBN guidelines and considerations include the average non-performing loans (NPL) of 4.2%, the capital adequacy ratio of 13.7%, the average liquidity ratio, and the loan-to-deposit ratio of 43% and 52% respectively. Emefiele suggested that these figures prove that Nigerian banking is “very safe”.

Emefiele also implied that the central bank has always and will continue to prioritize the interests of depositors. He said, “We will rather dispose of shareholders than make depositors lose money.” This statement was backed up by the fact that since 2003, no Nigerian depositor has lost money due to a failed bank.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.







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