NDIC Declares Five Banks as Healthy


The Nigeria Deposit Insurance Corporation (NDIC) has revealed that there are only five healthy banks in the country. It however said that whereas 13 of the total number of banks are satisfactory, two of them are just marginal.

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. It said 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.

The report added that two banks were 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.

The report also noted that in the Risk Based Supervision (RBS) audit carried out recently, 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.


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