The Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has urged the Governors of Central Banks and other African financial sector regulators to be more vigilant in their regulatory and supervisory roles to forestall any run on banks in their respective jurisdictions.
A statement from CBN stated, Emefiele gave the charge at the opening of the 2023 African Central Bank Conference which held at the Global Leadership Center, Johannesburg, South Africa.
Speaking on the current global dynamics and specific policy developments in Nigeria to address emerging shocks, he advised cCentral Banks on the continent to draw lessons from the recent failure of Silicon Valley Bank and Signature Bank in the United States of America, by putting in place regulations that will prevent any run on banks in their countries.
While sharing Nigeria’s experience in regulating banks, he noted that the threats posed to the financial system necessitated the release of new guidelines and regulations to tackle potential infringements and, in the process, protect depositors’ funds as well as promote greater transparency in the sector.
According to him, regulators must be alive to their responsibilities by ensuring that banks under their regulatory watch are financially healthy and do not suffer a similar fate as the Silicon Valley Bank, which, until its collapse recently, catered to many of the world’s most powerful tech investors.