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Shareholders laud CBN over banking industry stability

By on August 17, 2016

Shareholders and public affairs analysts have commended the Central Bank of Nigeria for ensuring the stability and safety of Nigerian banks through proactive measures.

The President, Renaisssance Shareholders’ Association, Ambassador Olufemi Timothy, who spoke on the stabilising role of the CBN, said the regulator had acted responsively and proactively in the last couple of years to protect shareholders.

According to him, the interventions of the CBN over the years have ensured that no single Nigerian bank is distressed or in danger of collapse.

He said such interventions had preserved shareholders’ interest and value.

“I can tell you authoritatively that our banks are strong and safe. Despite the global economic recession, and the attendant effect on the financial system, our banks are robust and healthy; the apex bank’s interventions have strengthened our banks,” he said.

The CBN had on July 4, 2016 intervened and re-constituted the Board of Skye Bank Plc, following the voluntary resignation of some members of the former board, with the new board swinging into action.

The regulator had subsequently extended guarantees to depositors’ funds and other trading instruments of Skye Bank in the interbank market to bolster operators’ confidence in the bank.

As a mark of renewed confidence in the board and management of the lender, Lagos Bauchi, Nasarawa and Kano states have renewed their Internally Generated Revenue mandates with Skye Bank.

Similarly, a renowned economist, Dr. Biodun Adedipe praised the resilience of Nigerian banks in the face of a tough operating environment.

Adedipe who is also the Lead Strategist at Adedipe & Associates, said recent reports from the CBN had confirmed the position of analysts that the banking industry was stable and safe.

He said the CBN had demonstrated good judgment by intervening where necessary, adding that such interventions had strengthened the industry.

 

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