“I will reiterate that the strategic health of the Nigerian banking industry remains very strong,” Emefiele emphasized when he spoke in Washington at the IMF/World Bank annual meetings.
His assurance came on the heels the stress test in the CBN financial stability report on the banking industry that showed seven banks not adequately funded in 2018.
The CBN governor explained that the fact that seven banks failed stress test does not mean that those banks are weak, adding: ”If for instance Bank A fails in liquidity, we will try to work with that bank to make sure it addresses its liquidity. If they fail capital adequacy which is also part of the stress testing parameters that we use, we also counsel them about the best ways of o address the capital adequacy issue.
“So it has nothing to do with the weakness of any bank in the industry that will lead to any panic or system crisis in the banking industry.”
