CBN: No Nigerian Bank In Distress, Depositors’ Funds Safe

CBN123None of the 22 commercial banks in the country is in distress, the Central Bank of Nigeria (CBN) yesterday assured bank customers.

The apex bank explained that the infusion of a new Board and Management for Skye Bank Plc was a proactive regulatory action aimed at ensuring that the bank does not continue to fail in its relevant prudential ratios.

The clarification was contained in a statement by the Acting Director of Communication at the CBN, Isaac Okoroafor.

“Neither Skye Bank nor any other bank in the industry is in distress. Therefore, the CBN would like to request the general public to ignore speculations or rumours to the contrary as they could only be the handiwork of mischief makers who do not mean well for the Nigerian banking system and its economy”, he said.

SEE: CBN Dissolves Skye Bank Board As It Begins Partial Takeover

Following news of the “partial” takeover of Skye Bank by the CBN on Monday, some customers of the bank responded in panic by massively withdrawing their funds and closing their accounts amid fears the bank was going to collapse.

But Okoroafor calmed frayed nerves, explaining that as the regulator of the industry, the CBN reassures the banking and general public that their deposits remain safe in any Nigerian bank and therefore, no need for panic withdrawals from any bank.

He said 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.

“We therefore urge the banking public to remain calm and go about their normal businesses without panic. It is important that we do not create problems when none exists”, he said.