The Central Bank of Nigeria says no bank in the country is distressed and that depositors should not make panic withdrawals from their accounts.
In a statement by CBN’s spokesman, Isaac Okorafor, the apex bank said: “The Nigerian banking industry remains strong in spite of the global economic challenges emanating from the collapse of global commodity prices.” Okorafor described as “unfounded speculations,” stories circulating the public domain that some banks may have gone or may be going into distress.
On Monday, CBN governor, Godwin Emefiele announced the sacking of the board and top management of Skye Bank and their replacement by people he described as “industry experts” who would turn the fortunes of the bank around. Emefiele attributed the action to the poor liquidity situation of Skye Bank, adding that the efforts of the outgone board though commendable, were not enough to improve the health of the bank. Skye Bank, has the required minimum capital ratios that would enable it run hitch-free operations. The bank is reported to have a bad debt portfolio of N700 billion.
Following the CBN action, depositors of Skye Bank have been making panic withdrawals in spite of Emefiele’s assurances that no depositor would lose their money. Depositors of some other banks suspected by some people to be having liquidity problems are also making unusual enquiries and withdrawals.
In a veiled reference to the above development, Okorafor cautions bank depositors: “It is important that we do not create problems when none exists.”
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