Posted by Sunnews Onl on
With the expiration of recapitalisation deadline at the weekend, about 13 banks have been marked by the Central Bank of Nigeria (CBN) for liquidation.
With the expiration of recapitalisation deadline at the weekend, about 13 banks have been marked by the Central Bank of Nigeria (CBN) for liquidation.
The banks include All StatesTrust Bank, Trade Bank, Hallmark Bank, Assurance Bank and Liberty Bank. Others are Fortune Bank, Eagle Bank, Metropolitan Bank, African Express Bank, Gulf Bank, City Express Bank, Triumph Bank and Societe Generale Bank.
In a statement, Central Bank of Nigeria(CBN), on Monday confirmed that a total of 25 banks have crossed the hurdle. These include Access Bank, Afribank, Diamond Bank, EcoBank, Equitorial Trust Bank, First City Monument Bank, Fidelity Bank and First Bank.
Others are First Inland Bank, Guaranty Trust Bank, IBTC-Chartered Bank, Intercontinental Bank, Oceanic Bank, Platinum Bank, Skye Bank and Spring Bank.
Also among the banks that met the N25 billion capital base are Stanbic Bank, Standard Chartered Bank of Africa, Sterling Bank, Union Bank, Unity Bank, Wema Bank, Zenith Bank, UBA and Citibank.
According to CBN, the reform programme started on July 6,2004 with the declaration by CBN Governor Professor Charles Soludo, of the recapitalisation of banks' capital base from N2 billion to N25 billion. Following the merger/acquisition arrangement which the order elicited, the number of banks shrunk from 89 to 25 while 13 of them neither merged, acquired nor were acquired.
The statement also said that 76 banks involved in the recapitalisation accounted for 93.5 per cent of the deposit share of the market while the capital market received a boost with a total of N406 billion. Similarly, it said, N360 billion was accepted by CBN, including foreign capital inflow of US$654 million and £161,993.
While enjoining the public to henceforth deal with the 25 banks, CBN restated that the 13 banks that could make it accounted for only 6.5 per cent share of the industry, adding that depositors' money in these banks are safe. "The CBN has concluded arrangements for a smooth resolution of these banks.'', the statement said.
The statement further noted that it was not unaware of the challenges that lie ahead of the consolidation which is the first phase of the banking reform. "Apart from resolving the distressed institutions, the recapitalisation of the 25 banks that have emerged is only the first step to the promised land.
The real integration of the institutions has just started and through its usual consultation and monitoring, the CBN will ensure that the exercise is carried out by the banks seamlessly to avoid disruption of banking services,'' it stated, insisting that the regulatory framework and capacity are also being beefed up to ensure that the objectives of the reform to support the real sector of the economy are absolved.