We Can Withstand Shocks From Trade War – CBN

By Oluwakemi Kindness

The Central Bank of Nigeria, CBN, says it is well prepared to handle the pressure and shocks from the ongoing trade wars between the U.S and China.

The Apex bank explained that it is reviewing emerging scenarios to enable it take diligent actions to weather any form of storm that may arise for the country.

The Director, Banking Supervision of the CBN, Dr. Olubukola Akinwumi, stated this while delivering a paper on Banking Recapitulation towards a one trillion dollar economy, the Industry perspective at the 36th seminar for FICAN Correspondents and Business Editors of Nigeria in Abuja.

He said the apex bank is confident that it’s policies would sustain the growth trajectory as indicated by relevant economic indices.

Also, he noted that the Nigerian banks are standing on sound footing when it comes to liquidity and they can meet depositors’ requirements, adding that the recapitalization process currently going on will promote consolidation, innovation and support MSMEs.

He said “We have been able to effectively manage our performance. The soundness indicators for the Nigerian banking system is looking very positive. We have our non-performing loans still within the thresholds set by the bank”.

“None is above the threshold set, so we are comfortable on non-performing loans. With respect to capital adequacy, we are consistently checking with our banks. We have just completed a 30-day examination to give us reassurance that our banks are on strong footing”.

Dr. Akinwumi further added that to enhance investor confidence and promote corporate governance in the banking system, the CBN remains committed to combating illicit financial flows.