CBN directs banks to abide by updated circulars, warns against outdated practices

By Sodiq Adelakun

In a move to streamline banking operations, the Central Bank of Nigeria (CBN) has issued a stern warning to all deposit money banks, licensed non-interest banks, and other authorised dealers.

The warning, articulated by the Director of the Financial Markets department, Omolara Duke, is a clear directive to cease the use of outdated circulars and guidelines, and to strictly adhere to the most recent updates issued by the regulatory body.

The CBN’s notice targets key financial players, particularly those operating at the CBN discount window, and mandates compliance with the latest circulars and guidelines.

The directive also provides a detailed list of the superseded circulars alongside their updated replacements to eliminate any ambiguity and ensure that all stakeholders are on the same page.

A notable change highlighted in the directive is the replacement of Circular FMD/DIR/PUB/CIR/001/006, dated October 7, 2022, which sets new protocols regarding access to the CBN discount window on auction days, as well as the revised guidelines for CBN lending windows and repo transactions.

Additionally, the banking sector is to take note of Circular FMD/DIR/PUB/GUI/001/002, dated June 9, 2022, which introduces updated guidelines for the operation of non-interest financial institutions’ instruments.

In related news, the stock market has seen a positive uptick, with stocks rising by 0.70 percent, indicating investor confidence as the banking sector aligns itself with the CBN’s reinforced regulatory standards.

In light of this directive, deposit money banks, licensed non-interest banks, and authorised dealers at the CBN’s discount window are urged to promptly integrate the updated circulars and guidelines into their operations.