CBN backs GTCO, debunks allegations, reaffirms commitment to financial stability

The Central Bank of Nigeria (CBN) has publicly backed Guaranty Trust Holding Company (GTCO) and its executive management, countering recent unfounded allegations circulating in the media.

In a statement issued by the Acting Director of Corporate Communications, Hakama Sidi Ali, on Monday, the CBN emphasized its commitment to the stability and security of the nation’s financial system.

The statement, titled “CBN Reaffirms Commitment to Financial System Stability, Safety of Depositors’ Funds,” reassured the public of the safety of deposits and the robustness of the Nigerian banking sector.

The CBN expressed concern over false reports aimed at damaging the reputation of GTCO and other financial institutions, stating that the allegations were propagated by unqualified entities seeking to undermine public confidence.

“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 statement read.

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It further highlighted the CBN’s crucial role in maintaining public confidence in banking operations and emphasized that all deposits in Nigerian banks are safe, with strict adherence to regulations and best practices.

The CBN outlined its oversight responsibilities, explaining that it regularly conducts stress tests on financial institutions to detect vulnerabilities and ensure their resilience.

Additionally, the CBN has implemented Early Warning Systems designed to proactively address emerging risks, allowing timely solutions to potential financial issues.

Hakama Sidi Ali noted that the CBN’s Risk-Based Supervision model focuses regulatory efforts on institutions posing the highest risk to the system, ensuring a robust oversight mechanism while promoting the overall health of the banking sector.

The statement also stressed the importance of international collaboration, as the CBN has established Memoranda of Understanding with countries where Nigerian banks have subsidiaries.

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This coordination ensures that Nigerian banks operate within a safe and sound framework, both domestically and internationally.

The CBN concluded by reaffirming its dedication to maintaining a secure banking environment where depositors’ funds are fully protected.

The regulatory body committed to continuously monitoring and adapting its strategies to safeguard the interests of all stakeholders in the Nigerian financial system.

With this declaration, the CBN not only debunked baseless claims against GTCO but also reinforced its role as a steadfast guardian of the country’s financial stability.