*The Central Bank of Nigeria (CBN) has said the banking system and entire economy of the country remain stable, robust, and resilient in spite of the far-reaching effects of the Coronavirus pandemic

Alexander Davis | 绿帽献妻

Despite the outbreak of the novel Coronavirus (COVID-19) pandemic February 2020, and its far-reaching implications on the country鈥檚 economy, the Central Bank of Nigeria (CBN) has said that country鈥檚 economy has remained stable, robust and resilient.

绿帽献妻 reports Mr. Haruna Mustafa, Director of Banking Supervision Department of CBN, stated this at the 2021 Financial Correspondents Association of Nigeria (FICAN) workshop Friday, October 22, 2021, in Ibadan, Oyo State capital.

The CBN Director of Banking Supervision, represented at the forum by Mr. Adekunle Adeniji, Assistant Director of Banking Supervision at CBN, said the Capital Adequacy Ratio (CAR) rose to 15.21 percent as of August, while Liquidity Ratio (LR) soared to 42.23 percent.

Whereas the non-performing loan ratio improved from 6.58 percent to 5.9 percent as of August 2021, the banking system credit to the Nigerian economy increased to 10.99 percent between January and August this year, said he.

According to Mustafa, the regulatory measures taken by CBN contributed to the growth within the period under consideration.

In terms of helpful interventions in the economy by the Bakers鈥� Bank, he noted some introduced interventions to lessen the impact of the pandemic to include reduction in interest rates to five percent.

According Mustafa, others measures are N50billion Target Credit Facility for households and Small and Medium Enterprises (SMEs) and re-enactment of Banks and Other Financial Institutions Act (BOFIA 2020), to strengthen the regulatory and resolution architecture for banks and other financial institutions.

The Director of Banking Supervision of CBN said that the Bank would continue to develop additional counter cyclical policy options that could be utilised in periods of stress in the country鈥檚 economy.

Mustafa noted that macro-prudential regulation and supervision has become more critical now than ever before.

He added 鈥淲e expect financial services to be provided more in a digital manner.

鈥淲e will continuously update and assess our prudential rule books and policy to strengthen responses to economic and financial shocks.

鈥淲e will continue to deploy effective stress testing methodologies to detect vulnerabilities early to enable appropriate pre-emptive action.鈥濃��

Mustafa stated that the banking sector had also sustained the growth of key economic activities, which were impacted by the pandemic in the agriculture, manufacturing, retail, healthcare, hospitality and tourism sectors.

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