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TEE ZERO (m)
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Breaking News: CBN sacks PHB, ETB & Springbank CEOs & EDs replaced by C Chukwumah, G O Folayan and Mrs S Ayodele respectively; offers N200b support. Wema, Unity to recapitalise.
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chidyke77 (m)
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I dnt knw wat dis mallam is trying to do to our banking industry,lets keep watching frm d sideline.
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chidyke77 (m)
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I dnt knw wat dis mallam is trying to do to our banking industry,lets keep watching frm d sideline.
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emaguy
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this a real big drama unfolding
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McDoe (m)
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Nigeria's Bank PHB chief exec resigns - sources
The heads of Nigeria's Unity Bank (UBPL.LG) and Wema Bank (WEMA.LG) are among five bank chiefs summoned to a meeting on Friday with the central bank following the completion of an audit, a CBN spokesman said.
The central bank said earlier it had summoned the heads of five banks including Bank PHB (BPHB.LG), Spring Bank (SPRN.LG) and Equitorial Trust Bank to the meeting.
[Wema Bank has been under the supervision of CBN which has helped to midwife the take-over of the Bank by the new core investor four months ago [/color] |
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TEE ZERO (m)
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STATEMENT FROM CBN
In furtherance of the Central Bank of Nigeria’s statutory duty to ensure a sound financial system in the country, the Governor of the Central Bank of Nigeria (CBN) ordered the Special Examination of all the 24 banks operating in Nigeria. The result of the Special Examination of the first set of 10 banks was made known on 14 August 2009. The CBN wishes to announce that the joint CBN-NDIC examination teams have completed the Special Examination of the remaining 14 banks— and as such the books and affairs of all 24 banks in the Nigerian banking system have now been examined.
The Special Examination primarily focused on assessing the health of the banks with particular focus on liquidity, capital adequacy and corporate governance. After a review of the findings of the Special Examination report in respect of these 14 banks, the CBN has come to the following conclusions:
The following nine (9) banks were found to have adequate capital and liquidity to support the level of their current operations and future growth:
1. Access Bank Plc
2. Citibank Nigeria Limited
3. Ecobank Nigeria Plc
4. Fidelity Bank Plc
5. First City Monument Bank Plc
6. Skye Bank Plc
7. Stanbic IBTC Bank Plc
8. Standard Chartered Bank Limited
9. Zenith Bank Plc
The 10th bank – which is Unity Bank—was adjudged to have insufficient capital but not in grave situation because it has a healthy liquidity position.
The remaining four banks were found to be in a grave situation:
1. Bank PHB Plc; 2. Equitorial Trust Bank Plc;3. Spring Bank Plc; and 4. Wema Bank Plc.
After a careful consideration of the matter, and in exercise of the powers conferred on him by Sections 33 and 35 of the Banks and Other Financial Institutions Act 2004, the Governor of the CBN, by order in writing, has taken a number of measures aimed at arresting the grave situation of these four banks.
The measures are:
a) The removal of the Managing Directors of Bank PHB Plc, Equitorial Trust Bank Plc and Spring Bank Plc and the appointment of new Managing Directors for these three banks, namely:
1. Mr. Cyril Chukwumah for Bank PHB Plc; 2. Mr. G.O. Folayan for Equitorial Trust Bank Plc; and 3. Mrs. Sola Ayodele for Spring Bank Plc.
b) The removal of all Executive Directors in Bank PHB Plc, Equitorial Trust Bank Plc and Spring Bank Plc. New Executive Directors will be appointed for these banks in due course.
c) The removal of all Non-Executive Directors in Spring Bank Plc.
d) The removal of Dr. Mike Adenuga, jnr., CON, as a Non-Executive Director of Equitorial Trust Bank Plc.
e) The order to the board of Wema Bank Plc to recapitalise by 30 June 2010. It is noted that Wema Bank Plc came under new ownership and management in June 2009 who took over a bank already in a grave situation and should not be held responsible for the present condition of the bank. The CBN will work with the Bank to ensure a successful completion of the recapitalisation exercise.
f) The provision of a total of N200 billion by the CBN as liquidity support and long term loans for the four banks adjudged to be in a grave situation to enable them continue normal business, while pursuing recapitalisation options.
g) The order to the board of Unity Bank Plc. to recapitalise by 30 June 2010. It is noted that Unity Bank Plc was adjudged to have insufficient capital for its current level of operations but was adjudged to have a healthy liquidity position and with no indication of poor corporate governance practices. The CBN has therefore exercised its powers under Section 13.3 of BOFIA to order the Board of Unity Bank Plc to recapitalise by the said date and the CBN will continue to monitor this situation.
In addition, the CBN will assist the five banks with insufficient capital in their loan recovery efforts, just as it did with the previous five. The CBN is happy to report that as at 25 September 2009, the five banks had recovered more than N110 billion of previously non-performing loans.
The CBN reiterates its commitment to stand by all Nigerian banks and work with their respective boards, management and other stakeholders to restore the stability of the financial system and thus ensure that our banks are able to effectively play their role in economic growth and development.
In furtherance of the commitment of the Federal Government to the growth and stability of the financial system, His Excellency the President of the Federal Republic, President Umaru Musa Yar’ Adua has directed the Honourable Minister of Finance and the Central Bank Governor to liaise with the Attorney General of the Federation, the National Assembly and other relevant stakeholders with a view to fast-tracking the process of establishing an Asset Management Company.
The formation of this company should facilitate an improvement in banking sector liquidity, protection of the earnings of banks from further erosion and a reduction of the debt overhang on the capital market and its participants. This should provide a much-needed fillip for the revival of the Nigerian Capital Market.
With the conclusion of the bank audit exercise, we have come to the end of the first phase of the process of restoring financial sector stability. Ongoing action will focus on building capacity within the regulatory regime; fast-tracking the implementation of risk-based, consolidated and cross border supervision frameworks; easing the flow of credit, particularly to the real sector of the economy; improving governance structures and practices in the financial services sector; and improving confidence in the economy in general.
HEAD OF CORPORATE AFFAIRS
CENTRAL BANK OF NIGERIA"
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TEE ZERO (m)
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CBN STATEMENT
In furtherance of the Central Bank of Nigeria’s statutory duty to ensure a sound financial system in the country, the Governor of the Central Bank of Nigeria (CBN) ordered the Special Examination of all the 24 banks operating in Nigeria. The result of the Special Examination of the first set of 10 banks was made known on 14 August 2009. The CBN wishes to announce that the joint CBN-NDIC examination teams have completed the Special Examination of the remaining 14 banks— and as such the books and affairs of all 24 banks in the Nigerian banking system have now been examined.
The Special Examination primarily focused on assessing the health of the banks with particular focus on liquidity, capital adequacy and corporate governance. After a review of the findings of the Special Examination report in respect of these 14 banks, the CBN has come to the following conclusions:
The following nine (9) banks were found to have adequate capital and liquidity to support the level of their current operations and future growth:
1. Access Bank Plc
2. Citibank Nigeria Limited
3. Ecobank Nigeria Plc
4. Fidelity Bank Plc
5. First City Monument Bank Plc
6. Skye Bank Plc
7. Stanbic IBTC Bank Plc
8. Standard Chartered Bank Limited
9. Zenith Bank Plc
The 10th bank – which is Unity Bank—was adjudged to have insufficient capital but not in grave situation because it has a healthy liquidity position.
The remaining four banks were found to be in a grave situation:
1. Bank PHB Plc; 2. Equitorial Trust Bank Plc;3. Spring Bank Plc; and 4. Wema Bank Plc.
After a careful consideration of the matter, and in exercise of the powers conferred on him by Sections 33 and 35 of the Banks and Other Financial Institutions Act 2004, the Governor of the CBN, by order in writing, has taken a number of measures aimed at arresting the grave situation of these four banks.
The measures are:
a) The removal of the Managing Directors of Bank PHB Plc, Equitorial Trust Bank Plc and Spring Bank Plc and the appointment of new Managing Directors for these three banks, namely:
1. Mr. Cyril Chukwumah for Bank PHB Plc; 2. Mr. G.O. Folayan for Equitorial Trust Bank Plc; and 3. Mrs. Sola Ayodele for Spring Bank Plc.
b) The removal of all Executive Directors in Bank PHB Plc, Equitorial Trust Bank Plc and Spring Bank Plc. New Executive Directors will be appointed for these banks in due course.
c) The removal of all Non-Executive Directors in Spring Bank Plc.
d) The removal of Dr. Mike Adenuga, jnr., CON, as a Non-Executive Director of Equitorial Trust Bank Plc.
e) The order to the board of Wema Bank Plc to recapitalise by 30 June 2010. It is noted that Wema Bank Plc came under new ownership and management in June 2009 who took over a bank already in a grave situation and should not be held responsible for the present condition of the bank. The CBN will work with the Bank to ensure a successful completion of the recapitalisation exercise.
f) The provision of a total of N200 billion by the CBN as liquidity support and long term loans for the four banks adjudged to be in a grave situation to enable them continue normal business, while pursuing recapitalisation options.
g) The order to the board of Unity Bank Plc. to recapitalise by 30 June 2010. It is noted that Unity Bank Plc was adjudged to have insufficient capital for its current level of operations but was adjudged to have a healthy liquidity position and with no indication of poor corporate governance practices. The CBN has therefore exercised its powers under Section 13.3 of BOFIA to order the Board of Unity Bank Plc to recapitalise by the said date and the CBN will continue to monitor this situation.
In addition, the CBN will assist the five banks with insufficient capital in their loan recovery efforts, just as it did with the previous five. The CBN is happy to report that as at 25 September 2009, the five banks had recovered more than N110 billion of previously non-performing loans.
The CBN reiterates its commitment to stand by all Nigerian banks and work with their respective boards, management and other stakeholders to restore the stability of the financial system and thus ensure that our banks are able to effectively play their role in economic growth and development.
In furtherance of the commitment of the Federal Government to the growth and stability of the financial system, His Excellency the President of the Federal Republic, President Umaru Musa Yar’ Adua has directed the Honourable Minister of Finance and the Central Bank Governor to liaise with the Attorney General of the Federation, the National Assembly and other relevant stakeholders with a view to fast-tracking the process of establishing an Asset Management Company.
The formation of this company should facilitate an improvement in banking sector liquidity, protection of the earnings of banks from further erosion and a reduction of the debt overhang on the capital market and its participants. This should provide a much-needed fillip for the revival of the Nigerian Capital Market.
With the conclusion of the bank audit exercise, we have come to the end of the first phase of the process of restoring financial sector stability. Ongoing action will focus on building capacity within the regulatory regime; fast-tracking the implementation of risk-based, consolidated and cross border supervision frameworks; easing the flow of credit, particularly to the real sector of the economy; improving governance structures and practices in the financial services sector; and improving confidence in the economy in general.
HEAD OF CORPORATE AFFAIRS
CENTRAL BANK OF NIGERIA"
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waooo
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meanwhile d CBN has appointed Cyril Chukwuma d new CEO of bank Phb.
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DayoCoker
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THANK YOU
Dear PHBeings,
Nine years ago, we began a journey with dreams in our
eyes, hopes in our heart, and belief in our capabilities to
build an institution that would add value, even with the
then crowded market.
Together, with your collective support we created and
nurtured what today has become a recognisable icon in
the nation’s financial services sector. Some of you will
recall with nostalgia the historical trajectory of our Bank
that has risen from nothing to emerge as Nigeria’s most
innovative bank.
I sincerely thank you all for the support, co-operation and
team spirit that has enabled us to come this far.
As in all things however, there is a time to say GOOD BYE.
As I bow out today from the Bank, I earnestly urge each
and everyone of you to keep the PHB passion aflame so
that the height, the mount everest which we envisioned
shall not only be accomplished, but shall be surpassed and
we would have created an institution that would outlive all
of us.
In the course of my stewardship we took decisions which
affected all of us in different ways but they were in the
best and overall interest of the Bank.
As I conclude my Bank PHB tour of duty today, I not only
wish to sincerely thank all you great PHBeings for
supporting me and rising up to the demands of our
franchise, but also to ask for forgiveness from those who
felt offended by my actions or inactions.
I urge you to extend cooperation and support to the
change in leadership that will result from my exit. Quite
honestly, I believe that the emotional issues are far
outweighed by the future outlook which I consider bright.
I owe thanks and appreciation to the Board, which
provided wisdom and counsel I couldn’t have done
without. To members of my executive team for their
advice, encouragement and all that I learned from them.
But most of all, I want to thank you, the employees, the
heart and soul of this great institution. You are the number
one reason for the successes we have achieved. Accept
my appreciation for your commitment and focus to our
vision, including your dedication to customers which is the
objective of our business.
If the mark of a truly high-performing organization is to
grow, evolve, and improve, I dare say we’ve done that to a
remarkable degree. Yet the next challenge will still require
you to redouble your effort especially in the face of
competition.
Even as I bow out at this moment, I wish you and
members of your family the best and enjoin you to remain
steadfast on the path of integrity and professionalism,
business focus, Innovativeness and indeed possibility
thinking which we have espoused over these years.
May God Almighty bless us all and Bank PHB
FA
Francis Atuche
Former GMD/CEO
Bank PHB http://dayocoker.wordpress.com/2009/10/02/atuche-goes-out-in-style/ |
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Quard Core (m)
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Why is CBN asking Unity to recapitalize even after recieving 70 billion naira from CBN last year. Does the bank look as if it can recapitalize, not to talk of surviving? I knew it from the begining that Unity bank will never receive the hammer, not when "Mr Fix It" has a major stake in the bank. I told my wife more than three weeks ago, she did not believe me. Power pass power. The mallam no dey fear?
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justfash50
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I dnt knw wat dis mallam is trying to do to our banking industry,lets keep watching frm d sideline.
quote chidyyke77
what else do you want the mallam to do, he has surprise your likes who says its a political,ethnicity and so on.
Where are those clamouring for his removal at least UNITY BANK is there now.
Am sure if UNITY BANK scaled through there would a loud cry from those sponsored as PR for the sacked CEO's and the gullible ones.
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naijatoday
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Why is CBN asking Unity to recapitalize even after recieving 70 billion naira from CBN last year. Does the bank look as if it can recapitalize, not to talk of surviving? I knew it from the begining that Unity bank will never receive the hammer, not when "Mr Fix It" has a major stake in the bank. I told my wife more than three weeks ago, she did not believe me. Power pass power. The mallam no dey fear?
Please provide prove or an article that showed Unity Bank was given N70 billion loan? The bank that asked for loan from the CBN last year for N70 billion was Bank PHB after it bought Spring bank and the CBN refused. |
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PANDO
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This is indeed a shocking news. Just when i thought the CEO of PHB has resigned honourably. Who knows who's next? Let's watch out for Zenith,
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Ess
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Wetin Zenith do you? out of 14 banks 11 banks have been audited and 5 were found not competent while the 3 remaining are stanbic, standard chattered and the other which i forgot, but sure aint zenith.
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Jarus (m)
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I see Jim Ovia voluntarily resigning from Zenith top job in the next few months. The ovation is loudest.
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isiegonwa
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who is next to fire
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pearlzz
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this is really news cant believe i missed out on it all day, can we now say our banks wd b better, i just pray dis isnt a new cycle,
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TalkLittle
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As regards ETB, don't really understand the hullabaloo about "corporate governance" when the bank is a limited liability company and not a Public Limited Liability company. Who does the board of directors answer to or give their stewardship to? Is it not the owners? Does this bank belong to the public? Why was Unity bank spared? This and many more should Sanusi tell us. What is he aiming at? Is he acting from the scripts? Only time would tell. I feel the whole process is becoming prejudiced and biased. E go better!  |
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mbulela
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I see Jim Ovia voluntarily resigning from Zenith top job in the next few months. The ovation is loudest.
Nigerians do not resign. |
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noble c.
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may god save our land.
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yommyuk
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ITT = International Thief Thief  |
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rasputinn (m)
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How the cookie crumbles,Francis Atuche finally bites the dust
FA would not have been in this situation if not for his obssesive desire to acquire spring bank at all cost.I have not been able to fathom the reason for the aggressive take-over of spring bank,come on,a bank that had been trading at N1.00 per share for nearly two years,Atuche,in his infinite wisdom,released funds to selected stockbroking firms to hijack spring bank from its owners at all cost,they had to even pay between N7.00 and N8.50 per share for the shares of spring bank.
That set the shareholders funds in PHB back by N63billion,all these happened with the tacit connivance of the then CBN governor and Anambra guber hopeful,charles Soludo,who seconded Ndanusa to the "new board" of spring bank and the Ndanusa jamboree was to cost PHB a further N23 billion.
To me,this is just the REWARD for greed as FA would only have got a reprimand if the only worms found in his PHB can were the N7 billion fraud saga that made him kick out Mary B and others
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rasputinn (m)
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Nigerians do not resign.
Jim had actually flirted with the idea of resigning some months ago,even before Sanusi became CBN gov,but feelers from his inner caucus have revealed that he has rescinded that decision for now as people are bound to interprete any such move as CBN-induced ala Francis Atuche In any case,there's rot in ALL nigerian banks,but sanusi and his gang seem to have some form of tolerance gauge with which they determine which bank CEO deserves to be booted out and which ones require mere reprimands,believe me Jim Ovia and Tony Elumelu have been given reprimands both in private and officially, THEY WON'T BE ASKED TO RESIGN |
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rasputinn (m)
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As regards ETB, don't really understand the hullabaloo about "corporate governance" when the bank is a limited liability company and not a Public Limited Liability company. Who does the board of directors answer to or give their stewardship to? Is it not the owners? Does this bank belong to the public? Why was Unity bank spared? This and many more should Sanusi tell us. What is he aiming at? Is he acting from the scripts? Only time would tell.
I feel the whole process is becoming prejudiced and biased.
Sanusi is fast becoming a master of double-speak
He had earlier said that ETB,CITI and Standard chartered bank being either private or foreign banks did not have issues of corporate governance hence CBN would not investigate them.
Unity bank is one of the least capitalised banks with high case of capital inadequacy and is technically a failed bank,but alas sanusi would not touch it as it's an Arewa bank that still has a former works minister and PDP strongman as a majority shareholder
We will watch sanusi closely and on this forum and others,we will expose all his professional decisions that may be religiously or ethnically induced |
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wizsultan
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Lol! Very soon, cars wil run on water, bank phb!
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rasputinn (m)
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I'm sure Mary Bassey and her husband,Alli Baba will now be laughing at FA
Well,e dey be like that at times,his obssesion with spring bank finally did him in
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Nezan (m)
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The man wan save face, CBN don sack am.
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cvibe
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Impossible! So, the actor died! |
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D-Engineer
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i have a question to you my dear readers and members on this exciting forum.
will this exercise affects the employees and their remuneration?.
just curious
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tubbytubby
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well am enjoying my new job so much am happy i left that useless bank PHB
Do you all remember my thread and all the things i told you guys was going on in that useless bank.FA bit the fingers that fed him,at a point when the money got into his head too much ,he started to talk like GOD.am sure he never knew this could happen to him as he will never have merged FINACORP with BankPHB but now it is too late for him.
I hope he dies soon and his testtube babies die with him, he is so wicked and deserved nothing much from life.he cheats on his wife in front of her and buys cars for women with the bank's money.he chased mary B away and frustrated so many people out of their career in that bank and this is a real case of karma.him and other ED's have a lot of answers for EFCC as i hear those cheated out of the system like mary b and one man (cant remember his name),and so many other people have been submitting all sorts to efcc to nail him to pieces.Also for his loyalists,you people are the worst as some of you are the ones compiling the documents against your former boss.Well old friends always last,if this fool had stuck to aunty mary and not sacked her in shame after all she did for the bank with her "pulala" then he would maybe still be the MD
FA,a word for you is you are a big fool and 419er and your arrogant ways couldnt save you this time.Bastards never live.you better commit suicide,its better than for you to watch the government take a bank you built with your sweat from the beginning,only if you had listened.Over ambitiousness kills.The 2 billion you stole will be returned by force by the government.thief like you.
I wish you roast in hell with a heart attack just as you have made people that suffered with you cry and disgraced them out of the system
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