There Are Only 5 ‘Sound Banks’ In Nigeria – NDIC

Must Read

Why Presidency Should Return To South In 2023: El-Rufai

Kaduna State governor, Nasir El-Rufai, has said the Presidency has advocated for the return of the presidency to the...

Why We Hovered Around As Boko Haram Attacked Adamawa Community: Air Force

The Nigerian Air Force (NAF) has explained why it could not open fire as Boko Haram attacked people in...

Oloye Akin Alabi Meets Mason Greenwood After Stunner Against Watford (Photo)

Nairabet owner and member representing Egbeda Ona-Ara federal constituency in the lower chamber of the National Assembly, Oloye Akin...

Oshiomhole Will Reap Consequences Of His Unruly Behavior: Obaseki

Governor Godwin Obaseki of Edo, says no one would hold his administration responsible if Adams Oshiomhole, national chairman of...

Odion Ighalo Kicked-Off Training Ground By Ladies Who Didn’t Recognize Him

Nigerian football star, Odion Ighalo suffered a stranger rejection from the University of Manchester women’s team. The new Man United...
Ardent Reader, News Freak, Socio-Political Commentator, Archaeologist & Pro-Democrat.

Logos Of Some Nigerian Banks

The Nigeria Deposit Insurance Corporation (NDIC) yesterday revealed that there are only five sound banks in the country, even as it stated there are no unsound banks.  Whereas 13 of the banks   are satisfactory, two of them are just marginal, says the deposit insurer. In its 2011 Annual Report and Statements of Accounts,  NDIC said the Deposit Money Banks (DMBs) were categorised under A to E, which means, A–Very Sound, B–Sound, C–Satisfactory, D–Marginal and E–Unsound, adding that there are no banks in the country that satisfied the condition to be in the category of Very Sound Bank and that there are no unsound banks at the end of 2011 fiscal year.

However, the report added that two banks are in the marginal category and that the combined total assets of the two marginal banks stood at N560.02 billion or 3.07 per cent of the industry’s total assets. Also, in the 2010 fiscal year, the NDIC said that in collaboration with the Central Bank of Nigeria (CBN), it carried out a joint target examination of the insured DMBs, where the findings at the end showed extreme weakness in corporate governance, weak credit examination, improvement in industry assets quality, arising largely from the sale of non-performing loans to Assets Management Company of Nigeria (AMCON), insider credit in excess of 10 per cent paid-up capital, concentration of credits and inadequate capital in some banks and credit in excess of single obligor limit.

The report also noted that in the Risk Based Supervision audit carried out by the two regulators in the banking sector, the examination revealed poor corporate governance practices, poor risk management arising from inadequate manpower and training of risk management personnel and absence of defined overall risk appetite by the banks. However, the  report further noted that notwithstanding the level of soundness of the banks, the report showed that all the banks but nine of them recorded significant improvement in the financial condition and performance in their 2011 report.

The NDIC report only listed the banks examined which include; Access Bank Plc, Citibank Nigeria Limited, Diamond Bank Plc, Enterprise Bank, Ecobank Plc, Fidelity Bank, First Bank Plc, First City Monument Bank, Guaranty Trust Bank and Keystone Bank. Also, examined include,  Mainstreet Bank, Standard Chartered Bank Nigeria Limited, Skye Bank Plc, Stanbic IBTC Bank Plc, Sterling Bank Plc, United Bank for Africa Plc, Union Bank Plc, Unity Bank Plc, Wema Bank Plc and Zenith Bank Plc.


- Advertisement -
Ad ==> Discover how a young Nigerian graduate now makes a consistent 40k per week doing a legitimate online business. You too can start yours now, click here!!!



Please enter your comment!
Please enter your name here

More Articles Like This

- Advertisement -