CBN gives September deadline to rescued banks Written by Gbola Subair, Abuja
Friday, 03 June 2011

The Central Bank of Nigeria (CBN) has given September 30 deadline for the rescued banks to get acquired or face liquidation. The Deputy Governor, Financial System Stability, Dr Kingsley Muoghalu, briefing the media on happenings within his directorate in the last one year, said negotiations were still on concerning some of the banks, promising that the apex bank would ensure that mergers and acquisitions outcome conformed with financial service stability.

Already, he said three banks namely, Intercontinental Bank, Fidelity Bank and Union Bank, had concluded their negotiations on mergers and acquisition and would be holing their court ordered meeting where shareholders would approve the new structure by July 15, 2011.

Disclosing that other rescued banks were in the process of negotiations, Dr Muoghalu, however, stated that shareholders in these banks were stalling the process of mergers and acquisitions in them.

The CBN Deputy Governor said if by September 2011, mergers and acquisitions had not taken place in the remaining rescued banks as a result of shareholders agitations, the apex bank would involve its authority under the CBN Act, BOFIA and NDIC Act to liquidate those banks.

He said the apex bank had also come out with measures to restore sanity in the board of directors of banks such as the review of membership of such boards.

In furtherance of the November 2010 abolition of Universal Banking, the Central Bank of Nigeria (CBN) came out with three new categorisation models for banks.

The new categories are Commercial Bank model, Merchant Bank model and Specialised Bank model.

He disclosed that following a circular on regulation of scope of banking activities and auxiliary matters issued on November 30, abolishing the universal banking model, the apex bank had decided to return the Nigerian banking system to the narrow banking model
With the narrow banking model, the deputy governor said banks would now concentrate on real banking activities, stressing that no bank could perform all activities at the same time.

Disclosing that banks were not supposed to engage in capital market activities, Dr Muoghalu said the apex bank abolished the concept of universal banking to save depositors fund and prevent speculative activities on the path of banks management.

Explaining the details of the banks categorisation, the deputy governor said in the Commercial Bank category, there were Commercial Bank International with a share capital of N50billion, Commercial National, with a share capital of N25 billion and Commercial Bank with a share capital of N10 billion.

Banks in this category are Access Bank, Guaranty Trust Bank, Diamond Bank, Spring Bank, Zenith Bank, Fidelity Bank, UBA, First City Monument Bank and First Bank( UBA, FirstBank and FCMB will operate as holding company)

Banks in the commercial bank national are ECO Bank, Standard Limited Bank, Sterlin Bank, Unity Bank, CitiBank and Stanbic Plc/( Stanbic will operate as holding company model).

violent:

where did you get this info from?

hassymo5:

If you are not aware of this then i don't know what to say!!!!!!!!!!!!!!!!!!!

enyojo:

enyojo:

WE WANT TO START A DEVELOPMENT BANK THAT CAN LOAN MONEY TO FASTTRACK REAL ESTATE DEVELOPMENT IN AFRICA BEGINING WITH NIGERIA. PLEASE WHO HAS IDEAS PLEASE??

_{Hope a CBN Governor will not sentence me to 6 months on Bedrest like Cecilia if I become a Billionaire some years after?}

hassymo5:

What do mean?, i don't understand!

Seun:

I can't find the list of banks to be liquidated in the article. Please tell us where you got the list. Thanks.

CBN gives September deadline to rescued banks
Written by Gbola Subair, Abuja
Friday, 03 June 2011

The Central Bank of Nigeria (CBN) has given September 30 deadline for the rescued banks to get acquired or   face  liquidation. The Deputy Governor, Financial System Stability, Dr Kingsley Muoghalu, briefing the media on happenings within his directorate in the last one year, said negotiations were still on concerning some of the banks, promising that the apex bank would ensure that  mergers and acquisitions outcome conformed with financial service stability.

i have over 70,000 shares in one of the affected banks. could not sell the shares because it
crashed totally.

Now the banks are at the verge of liquidation, what are my best options?

I need advice pleaseeeee

when i spoke with my stock broker yesterday he said its difficult to find a buyer now because
most people are offloading their shares.

cmon:

[size=14pt]Is that why intercontinental bank closed their branch on Wethral road in Owerri? I beg ooo,

Do we start withdrawing our money? what are the backup plans for these banks? What do they really mean by "LIQUIDATED"?

Please advise before someone get HBP here, [/size]

ZE:

i have over 70,000 shares in one of the affected banks. could not sell the shares because it
crashed totally.

Now the banks are at the verge of liquidation, what are my best options?

I need advice pleaseeeee

when i spoke with my stock broker yesterday he said its difficult to find a buyer now because
most people are offloading their shares.

odedele:

wen will GEJ call dis akoki 2 order.sanusi is taking dis whole tin 2 far.sanusi rejected most of d prefered investor south by shareholders just because he had an interest in all d process.hw big enough is access 2 acquire inter. or hw do u imagine fcmb acquiring finbank.d whole process is flawed i must say.82 banks were recarpitalise to 25 during soludo era seamlessly y is d recarp of just 8 creating so mush noise.d treat of liquidation does not hold water as i wonder wat will hapen 2 over 1trillion deposit,over10,000 staff and above all d loss of confidence in d banking sector dis egoistic move will cost

ruth42k3:

are you kidding me
i bank with intercontinental,can CBN seriously liquidate intercontinental bank this is serious.

omega25red:

[size=13pt]This news is very irresponsible on the part of CBN because this will defiantly kill all those banks when people make a rush for their money.[/size] If i were a user of any of those banks i will defiantly be there today to collect all my money before the bank disappears with it

cmon:

Is that why intercontinental bank closed their branch on Wethral road in Owerri? I beg ooo,

Do we start withdrawing our money? what are the backup plans for these banks? What do they really mean by "LIQUIDATED"?

Please advise before someone get HBP here,