CBN denies allegations of financial foul play against GTCO

Central Bank of Nigeria (CBN) has denied reports against Guaranty Trust Holding Company (GTCO) and its Executive Management over allegations of financial foul play.

In a statement released on Tuesday, October 8, 2024 and signed by CBN’s Acting Director of Corporate Communications in Nigeria, Hakama Ali, the apex bank reassured the public that their deposits with Nigerian banks are safe and protected.

“The Central Bank of Nigeria wishes to reassure the public of its unwavering dedication to ensuring the stability and reliability of the Nigerian financial system,” it said.

“We recognize the critical role that public confidence plays in banking operations, and we affirm that all deposits in Nigerian banks are secure.”

The CBN stressed its continuous efforts to uphold strict regulatory standards across the banking sector.

It explained that these efforts include regular stress tests aimed at identifying potential vulnerabilities and ensuring the resilience of financial institutions.

It stated that it has also implemented Early Warning Systems that proactively detect and address emerging risks, allowing for timely interventions to mitigate any issues that may arise.

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“”Through its Risk-Based Supervision framework, the CBN directs its regulatory focus on institutions with the highest financial system risks. This targeted approach allows for efficient oversight and promotes the sector’s overall health and stability,” he said.

“Moreover, the CBN highlighted its international regulatory collaborations, stating that it has established Memoranda of Understanding (MoUs) with the regulatory authorities of countries where Nigerian banks have subsidiaries. This cooperation ensures that Nigerian banks operate within safe and sound frameworks domestically and abroad, fully complying with global banking regulations.”

It added that the CBN remains committed to fostering a secure banking environment, assuring depositors of the continued safety of their funds, adding: “The apex bank will continue to monitor developments and adapt its strategies to safeguard the financial interests of all Nigerians and stakeholders in the the financial system.”

According to Sahara Reporters an investigation report by Global Integrity Crusade Network (GICN) was released and bordered on allegations of “unscrupulous, unethical and criminal activities” levelled against the Guaranty Trust Bank Limited, a subsidiary of Guaranty Trust GTCO.

Reacting to the report, GTCO released a statement stating that the allegations are being sponsored and that it has taken swift and decisive legal actions against the various sources of the reports and will continue to use the full extent of the rule of law available to safeguard its reputation.