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CBN set to Resuscitate Savannah and SGBN Banks with Loan

By on December 7, 2012

 

CBN Deputy Governor, Tunde Lemo

In a bid to revive  two of Nigeria’s once most foremost Banks, the Central Bank has approved a loan  facility that will help reposition them for recapitalization, thus bringing them back into the banking business.

This decision a vital one, came at a time when many of the  shareholders of the embattled banks  lost hope in the restoration of their Banks, ever since the closure  of the banks  a decade ago.

CBN’s Director of Banking Operations Tokunboh Martins who confirmed the information, but could not specify the exact amount each banks will get,  said the Loan was designed in a  way that will aid the banks in meeting their obligations and also carry out their strategic operations.

She stated the loan will be attached to the conditionality of the Banks selecting which of the recapitalization requirement it would have capacity for, as it varies from N50  billion Continental, N25 billion National, and N5billion for regional banking.

This facility is a welcome development for the Banks namely Societe General Bank which is to operate as Heritagebank and Savannah Bank which will retain its name. Both Banks got back their licenses since 2009 and have been strategizing and exploring avenues to rebuild their asset base.

Still speaking on the issue CBN Director of  Communications Mr Ugochukwu Okoroafor said “We have always given forbearances. Recall that a core mandate of the CBN is to maintain financial systems stability and the Deposit Money Banks are a critical element to that mandate. The CBN has always given forbearances in injected funds as a lender of last resort where needed”.