Nigeria’s Central Bank has given the local banks clean bill of health, as it declared that none of them is in distress


The CBN said the clarification had become necessary due to malicious rumours and unfounded speculations that some banks in the country may have gone or may be going into distress.
“The CBN wishes to reiterate in the strongest terms that these rumours and speculations are untrue and do not reflect the actual health of the individual banks and, indeed, the entire banking industry,” the regulator noted last night in a statement signed by its Acting Director Corporate Communications, Isaac Okorafor.
” Going by both the CBN’s Examination Reports as well as analysis from market watchers, International Credit Rating Agencies, and Development Finance Institutions, the Nigerian banking industry remains strong in spite of the global economic challenges emanating from the collapse of global commodity prices,” it added.
Monday incident which saw the CBN dissolve and reconstitute the board and Management of Skye Bank pls has sent shivers across and fueled fears that a lot more banks were having liquidity challenges and therfore could be on the verge of collapse.
Skye bank’s failure to meet the minimum thresholds in critical prudential, adequacy ratios and its permanent presence at the Apex bank lending window led to the decision to  change in its board and management.
Skye Bank was said to have an estimated non performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector.
Some banks have since then taken to de-marketing some other industry lenders, spreading rumours of possible bankruptcy against them.
In the statement, the CBN explained that the infusion of a new Board and Management for Skye Bank PLC was a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios.
“Neither Skye Bank nor any other bank in the industry is in distress. Therefore, the CBN would like to request the general public to ignore speculations or rumours to the contrary as they could only be the handiwork of mischief makers who do not mean well for the Nigerian banking system and its economy,” it explained.
“As the regulator of the industry, the CBN hereby reassures the banking and general public that their deposits remain safe in any Nigerian bank. There is, therefore, no need for panic withdrawals from any bank.”
The regulator therefore urged the banking public to remain calm and go about their normal  businesses without panic.
“It is important that we do not create problems when none exists,” it further warned.

Ontinye Nwachukwu




Post a comment

0 Comments