All Nigerian Banks Are Healthy, None In Distress- CBN

The Central Bank of Nigeria CBN has condemned in strong terms claims that some of Nigerian Banks are distressed or about to fail. The CBN made this statement known to the public following severe panicking and claims that Some banks especially Heritage Bank and Skye Bank which the apex bank to control of earlier this week are in serious distress and may not be able to meet its obligations to customers and shareholders due to the amount of toxic loans they currently have in their books.

In a statement signed by the acting Director of of Corporate Communications, Mr. Isaac Okorafor and released to the public yesterday, the CBN made it categorically clear that neither Skye Bank which it took over from its management on Monday 4^th July or any other banks in Nigeria was distressed. The bank therefore in the statement assured Nigerians and shareholders of the safety of their deposit in any Nigerian bank and advised against panic withdrawals and massive transfer of funds from these banks or any other banks rumoured to be going through challenges in meeting their statutory obligations.

                   

The CBN reiterated in the strongest terms that the rumors and speculations are untrue and do not reflect the actual health of the individual banks and, indeed, the entire banking industry. The apex Bank further allays the fear of the members of the public that for the avoidance of doubt, the infusion of a new Board and Management for Skye Bank PLC is a proactive regulatory action meant to ensure that the bank does not continue to fail in its relevant prudential ratios.

Furthermore the Director in the statement said neither Skye Bank nor any other bank in the industry is in distress and 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. The CBN therefore urge the banking public to remain calm and go about their normal businesses without panic.

Recall that the Central Bank of Nigeria announced that it had dissolved the management board of Skye bank for its inability to maintain a healthy business in midst of prevalent failure in its prudential ratio. There were reports that the bank had over 400 billion Naira toxic loan which are not being serviced by some corporate organizations and individuals due to the prevailing decline in oil prices and uncertainty in the prices and production of petroleum marketing in Nigeria.