Regulatory Alerts2014-09-08 | BSD/DIR/CON/LAB/07/026Framework for the Regulation and Supervision of Domestic Systemically Important Banks (SIBs) in Nigeria
The Central Bank of Nigeria has established a framework to address the risks posed by systemically important banks (SIBs) in Nigeria. This includes enhanced capital, liquidity and stress-testing requirements for these institutions. The CBN will also conduct more frequent and intense on-site and off-site supervision, with half-yearly meetings held with the board and management of SIBs rated as having a high composite risk. Additionally, SIBs are required to provide high quality data to the regulatory authorities for the purpose of enhanced supervision. Disclosure requirements have also been expanded, including increased transparency around credit risk, liquidity management, capital adequacy and financial performance. The CBN has also established an addendum to the monthly SIB report, which will include additional data on liquidity, credit concentration and contingent assets and liabilities. Finally, appropriate sanctions have been implemented for non-compliance with the requirements of this framework.