By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has assured stakeholders in the country that Nigerian banks remain resilient following widespread media reports that commercial banks in the country had failed the bank’s Capital Adequacy Ratio (CAR) for international authorisation.
CAR compares the risk-weighted assets of a bank with the available capital that Nigerian banks possess. For instance, when faced with challenging financial conditions, the ratio offers a quick and easy way to determine whether or not a bank has sufficient money to cover losses and continue to keep its solvent status.
In a statement on Monday, the apex bank, through its Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, said that the country’s banks remained steadfast, as financial soundness indicators were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023.