Connect with us

    Hi, what are you looking for?

    E-Financial

    Panic Withdrawal: CBN Debunks Distress Alert On Zenith Bank

    Central Bank of Nigeria (CBN), the financial regulator has reiterated the resilience, safety and soundness of Nigerian Deposit Money Banks (DMBs) and other financial institutions under its supervision.

    The apex bank made the clarification following unconfirmed reports in the social media that depositors fund in Zenith Bank may be trapped as the bank is no more solvent.

    Speaking with journalists at the weekend, Osita Nwanisobi, acting director, Corporate Communications Department of the Bank, said the Nigerian banking system had proven to be very sturdy in spite of the global challenges posed by the coronavirus pandemic.

    An online report claimed that Zenith has been facing the worst liquidity challenge since March of 2021 due to gross mismanagement of her fund which has led to panic withdrawals by depositors in Lagos, Kano and other parts of the country.

    According to Nwanisobi, routine bank examination and stress test for financial institutions operating in the country indicated that no Deposit Money Bank (DMB) licensed by the Central Bank of Nigeria is currently under any form of financial distress, adding that the banks have adequate capital to absorb unexpected losses that may arise.

    In line with the Bank’s resolve to ensure adherence to prudential standards, Nwanisobi said the CBN continues to monitor the activities of banks in order to ensure that no individual or institution breaches the laid down guidelines. He therefore advised the banking public to disregard any report alleging insolvency in the Nigerian banking sector.

    Loading

    Spread the love
    Click to comment

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    ad

    You May Also Like

    News

    Nigerian billionaire and Senator, Ned Nwoko, has refuted the recent viral claims of domestic violence made by his wife, actress Regina Daniels. In a...

    News

    TD Africa, leading technology solutions aggregator in Sub-Saharan Africa, has officially announced the onboarding of Zinox Technologies into its basket of global brands. This...

    News

    Ukrainian President Volodymyr Zelensky has proposed a potential exchange of Ukrainian-made drones for U.S. Tomahawk cruise missiles during a meeting with President Donald Trump...

    Tech

    Kashifu Inuwa Abdullahi, CCIE, Director General, National Information Technology Development Agency (NITDA), has reaffirmed Nigeria’s commitment to leveraging Artificial Intelligence (AI) for national development,...