Shareholders’ group, analyst laud banking industry stability

Recent monetary policy choices aimed at ensuring stability and safety of Nigerian banks by the Central Bank of Nigeria (CBN) have received the commendations of stakeholders in the industry.

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

He, however, urged Nigerians to reject negative comments making the rounds against CBN, adding that apex bank’s interventions over the years have ensured that no single Nigerian bank is distressed.

According to him, such interventions have preserved shareholders’ interest and value, since no bank has collapsed till now.

“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.

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

Adedipe, who is also the Lead Strategist at Adedipe and Associates, said reports from the apex bank have confirmed the position of analysts that the banking industry is stable and safe.

He pointed out that CBN has demonstrated good judgment by intervening where necessary, adding that such interventions have strengthened the industry.

CBN had on July 4, 2016, intervened and re-constituted the management of Skye Bank following the resignation of some members of the board, as the prudential ratios of the bank faltered.

Following the apex bank’s intervention, it also extended guarantees to depositors funds and other trading instruments of Skye Bank in the interbank market to bolster confidence in the lender.

As a mark of renewed confidence in the management of the bank, some states- Lagos Bauchi, Nasarawa, Kano, Kogi, among others, entered into strategic partnership with the financial institution and renewal of internally generated revenue mandates.