Nigerian banks are not directly exposed to SVB, says central bank governor Bitcoin News

A recent review of the bond portfolios of Nigerian banks showed that the institutions were not directly exposed to Silicon Valley Bank, the governor of the country’s central bank said. In addition, the governor said that the strict guidelines of the Central Bank of Nigeria help to create a “very safe” banking system.

Priority given to depositors

According to Central Bank of Nigeria (CBN) Governor Godwin Emefiele, a recent review of Nigerian banks’ bond portfolios showed that the country’s financial institutions had no direct exposure to Silicon Valley Bank (SVB). Emefiele, who made the remarks during a meeting of the bank’s monetary policy committee, added that the central bank’s so-called prudential guidelines help ensure that only healthy banks can operate.

Some of the guidelines and considerations used by the CBN include banks’ non-performing loans (NPLs), which averaged 4.2%, and the capital adequacy ratio of 13.7%. According to Emefiele, these ratios, as well as the banks’ average liquidity and loan-to-deposit ratios of 43% and 52% respectively, indicate that Nigerian banks are “very safe.”

Also, in his statements published by Nairametrics, Emefiele implied that the central bank has and will always give priority to bank customers.

“We would rather dispose of shareholders than make depositors lose money,” Emefiele said.

To support this claim, Emefiele is quoted in the report stating that no Nigerian depositor has lost money in a failing bank since 2003.

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Terence Zimwara

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