IFC Bulletin No 39 1 Development and compilation of macroprudential indicators for financial stability and monetary policy in Nigeria Sunday Nyong Essien and Sani Ibrahim Doguwa 1 Abstract This paper discusses the development and compilation of quarterly macro- prudential indicators and their relevance to financial stability and monetary policy management in Nigeria. The indicators are analyzed on time series basis to give insight to the level of soundness of the Nigerian financial system. The FSIs, complemented by stress testing of the system, serve as useful tools in evaluating the strengths and weaknesses of the financial institutions, as well as provide signals to the Monetary Policy Committee of the Bank for possible actions to ameliorate the vulnerabilities of the system. The results of recent macro-prudential analyses revealed that the Nigerian financial system was stable, robust and resilient to liquidity and funding shocks. JEL classification: E52, E44 1 The authors are members of staff of the Statistics Department, Central Bank of Nigeria. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Bank.