First Bank of Nigeria Limited, Guaranty Trust Bank Plc (GTBank), Zenith Bank Plc, United Bank for Africa Plc (UBA), Access Bank Plc, Skye Bank Plc, Ecobank Nigeria and Diamond Bank Plc have all been designated by the Central Bank of Nigeria (CBN) as “too big to fail.” The CBN believes that failure of any of the eight banks which account for 75 per cent of the banking sector (in terms of earnings, profitability, assets, customer deposits and branch networks) could pose a systemic risk to the banking industry and the larger economy. Consequently, the CBN is now adopting a more robust regulatory regime to monitor and scrutinise the eight banks, in order to ensure that they are healthy. This, according to the Deputy Governor (Operations) of the CBN, Tunde Lemo, is not because the banks are weak but because “we have to focus more attention on them because, God forbid, if something happens to any of them, it may affect the entire system.”
Posted on: Tue, 12 Nov 2013 09:57:23 +0000
Trending Topics
Recently Viewed Topics
© 2015