Officials of the Central Bank have assured Nigerians that the nation’s banks are financially stable, especially the recently nationalised banks.
The deputy governor of the bank in charge of corporate services, Mr Suleiman Barau and the director in charge of banking supervision Mrs Agnes Martins who spoke at a meeting with members of the House of Representatives Committee on Banking and Currency in Abuja added that the resignation of a bank’s managing director cannot in any way affect the day to day running of a bank.
They however said that the banks new strategy is targeted at ensuring proper risk management, transparency and accountability in the Nigerian banks.
On their part, members of the House of Representatives Committee on Banking and Currency took turns to bear their minds on issues bordering on the nation’s economic stability.
The Asset Management Company of Nigeria (AMCON) has appointed Citi and Renaissance Capital to determine the value of three lenders it nationalised last year before deciding on the best way to privatise them. The AMCON Chief Executive, Mustapha Chike-Obi confirmed the appointments in a message to Reuters on Tuesday but gave no further details.
Three banks were nationalised last year after they failed to find new investors before a recapitalisation deadline and changed their names to Mainstreet Bank from Afribank; Enterprise Bank from Spring Bank and Keystone Bank from Bank PHB.
The three banks were among nine involved in a N620 billion Central Bank bailout in 2009 when the regulators asked them to find new investors or face nationalisation.
Citi and RenCap have between three and six months to complete their evaluation.
Mr Chike-Obi said last month that AMCON may list the three nationalised banks instead of selling them to rivals, as it seeks to determine fair value for the banks.
Previously, AMCON said that more than 20 firms – banks and private equity investors – had expressed interest in acquiring the nationalised lenders, but AMCON is keen to have them valued before starting any negotiations.
The Asset Management Company of Nigeria (AMCON) on Tuesday said it may list three banks that were nationalised as part of a bailout in 2009, instead of selling them to rivals, as it seeks to determine fair value for the banks.
Mustapha Chike-Obi, the chief executive of AMCON, said the AMCON will need to find financial advisers before finalising its decision on whether to list directly or sell to competitors.
“AMCON is appointing an adviser that will evaluate and determine the value of the banks, evaluate all the options available to AMCON,” he said.
“We expect our eventual adviser to consider this (listing) among other options,” Chike-Obi said. He said in April that all three rescued banks were now profitable.
Previously, AMCON said that more than 20 firms — banks and private equity investors — had expressed interest in acquiring the nationalised lenders, but AMCON is keen to have them valued before starting any negotiations.
It may opt to take them public if it can get a better deal.
The Central Bank of Nigeria (CBN) nationalised three banks changed their names to Mainstreet Bank from Afribank; Enterprise Bank from Spring Bank; Keystone Bank from Bank PHB, for failing to find new investors before a recapitalisation deadline.
The CBN then injected N620 billion into nine banks in 2009, judging that they were dangerously undercapitalised.