The Central Bank of Nigeria, CBN, says the country’s commercial banks are not distressed as reports had alleged, days after the apex bank took over the management of Skyebank, one of Nigeria’s biggest commercial banks.
Skyebank had not released its 2015 results allegedly because the bank recorded huge losses, sources within the bank told TheSimonAtebaNews. The CBN had asked the board of the bank to resign and its Group Managing Director to go. He did as well as others. The apex bank replaced them same day.
The replacement led to reports that some banks in Nigeria might be distressed. But the CBN said those “rumours” were not true.
“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,” said Isaac Okorafor, the acting Director, Corporate Communications of the CBN.
Below is CBN Statement
The attention of the Central Bank of Nigeria (CBN) has beendrawn to malicious rumours and unfounded speculations thatsome banks in the country may have gone or may be going into distress.
The CBN wishes to reiterate in the strongestterms that these rumours and speculations are untrue and donot reflect the actual health of the individual banks and,indeed, the entire banking industry.
For the avoidance of doubt, the infusion of a new Board and Management for Skye BankPLC is a proactive regulatory action meant to ensure that thebank does not continue to fail in its relevant prudential ratios.Neither Skye Bank nor any other bank in the industry is indistress.
Therefore, the CBN would like to request the generalpublic to ignore speculations or rumours to the contrary as theycould only be the handiwork of mischief makers who do notmean well for the Nigerian banking system and its economy.
As the regulator of the industry, the CBN hereby reassures thebanking and general public that their deposits remain safe inany Nigerian bank.
There is, therefore, no need for panicwithdrawals from any bank.Going by both the CBN’s Examination Reports as well asanalysis from market watchers, International Credit RatingAgencies, and Development Finance Institutions, the Nigerianbanking industry remains strong in spite of the global economicchallenges emanating from the collapse of global commodityprices.
We therefore urge the banking public to remain calmand go about their normal businesses without panic. It isimportant that we do not create problems when none exists.
Isaac Okorafor
Ag. Director, Corporate Communications