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"Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN - Business - Nairaland

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"Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by paranorman(m): 3:57pm On Nov 12, 2013
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 been designated by the Central Bank of Nigeria (CBN), as “too big to fail”, owing to the fact that their failure could pose a systemic risk to the banking industry and the larger economy.

The eight banks alone account for 75 per cent of the banking sector in terms of earnings, profitability assets, customer deposits and branch networks.

The CBN, it was learnt, has therefore adopted a more robust regulatory regime to monitor and scrutinise the eight banks, in order to ensure that they are healthy.

The central bank has also asked the eight banks to increase their capital base in order to give them a buffer against internal and exogenous shocks.

Confirming this development, Deputy Governor (Operations), CBN, Mr. Tunde Lemo, described the financial institutions as systemically important because of their size.

Lemo pointed out that any bank that accounts for five per cent of the banking system is systemically important.

“What that means is that we have to take a closer look at them. It doesn’t mean that they are weak, it is just that we have to focus more attention on them because, God forbid, if something happens to any of them, it may affect the entire system,” Lemo said.

Asked about the capital base that the respective banks are expected to have, the CBN deputy governor said: “It is not that they were asked to raise their capital base, it is just that when an institution is designated as systemically important, it is required to have more capital.”

For Zenith Bank, its recently released results for nine months ending September 30, 2013 showed that its profit after tax stood at N64 billion with loans and advances of N1.1 trillion. The bank also reported gross earnings of N255 billion at the end of September 2013, up by 11 per cent from the N229 billion recorded in the corresponding period in 2012.

Zenith Bank’s total market capitalisation on the Nigerian Stock Exchange (NSE) stood at N675.024 billion yesterday.

Also, GTBank’s profit after tax stood at N69.24 billion at the end of September 2013, as against N63.734 billion earned in the same period in 2012. GTBank’s total assets also stood at N1.875 trillion, compared to the N1.73 trillion as at December 2012. Its share price on the NSE closed at N25.99 per share yesterday, giving it a market capitalisation of N764.916 billion.

In the same vein, UBA’s unaudited results for the nine months ending September 30, 2013 also revealed that its profit after tax climbed to N37.37 billion. With a market capitalisation of N257.255 billion on the NSE, its share price closed at N7.80 per share.

For Access Bank, its recently released unaudited nine-month results showed gross earnings of N154 billion at the end of September 2013. Its profit before tax also stood at N35 billion. Access Bank’s market capitalisation on the NSE was N213.269 billion yesterday, while its shares closed at N9.32 per share.

Skye Bank Plc’s gross earnings rose to N102 billion at the end of September 2013, while its profit after tax stood at N11.650 billion.
Diamond Bank also posted a profit before tax of N25.6 billion, while its total assets stood at N1.377 trillion at the end of September 2013.

First Bank of Nigeria Limited is yet to release its third quarter results because of its holding company structure. [Thisday]
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by paranorman(m): 4:03pm On Nov 12, 2013
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by DICKtator: 4:49pm On Nov 12, 2013
I know that UBA would make it.

After all Chris and his brother Andy are Billyonaires <------- grin grin grin grin



grin grin grin grin

11 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:49pm On Nov 12, 2013
Are they indirectly telling Nigerians to deal with these banks alone?

4 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by demmyboy1(m): 4:50pm On Nov 12, 2013
Good to hear
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by kennyonthrone(m): 4:50pm On Nov 12, 2013
So Oh MPA bank no follow

Peter Obi no d try oooo

We are Fidelity we kip our words

4 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by petkoffDrake(m): 4:50pm On Nov 12, 2013
I kno my bank wil b among! kiss GTB

2 Likes 1 Share

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by iterator25: 4:51pm On Nov 12, 2013
#teamGTB

3 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by braine(m): 4:51pm On Nov 12, 2013
With the way Ecobank deduct their hidden charges from my account• I just dey look them• Bloody thieves• angry

16 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:52pm On Nov 12, 2013
Those re the most popular banks in Nigeria.

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by pelhurmy(m): 4:52pm On Nov 12, 2013
plz,wea is WEMA bank

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Justicemy: 4:52pm On Nov 12, 2013
@op wetin come concern us for dis one ??

2 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by iterator25: 4:52pm On Nov 12, 2013
DICKtator:
I know that UBA would make it.

After all Chris and his brother Andy are Billyonaires <------- grin grin grin grin



grin grin grin grin
the bank that uses that creepy dude for their campaign sad

2 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:52pm On Nov 12, 2013
I hope standard chartered is safe undecided

I no wan hear story o
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:53pm On Nov 12, 2013
They should remember what happened to the Titanic

12 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Dominionng(m): 4:53pm On Nov 12, 2013
Like always.. First Bank will everly delay!
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Loskee(f): 4:53pm On Nov 12, 2013
UNION BANK PEOPLE!!!
ENTERPRISE BANK...
FIDELITY!!!
FCMB!!!
STANBIC!!!
STERLING!!!
STANDARD CHARTERED!!!

NDI A, BEWAAAARRRRRREEEEE!!!!!! grin grin grin grin grin grin grin grin grin grin

3 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by magarito: 4:54pm On Nov 12, 2013
Wit UBA i think my money should be save.

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Adikam(m): 4:54pm On Nov 12, 2013
UBA has no difference wit nursery skul...ECO no big e no small dere partern of building is desame as old village church.ZENITH if u loose ur moni dere & u poor u beta dont talk

7 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by ipasco: 4:55pm On Nov 12, 2013
Ooh!! You own GTB
petkoffDrake: I kno my bank wil b among! kiss GTB

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by yuzedo: 4:55pm On Nov 12, 2013
LOL! Lehman Brothers all over again... The way AIG was too big to fail but needed bail-out unless the entire system for turn Zimbabwe? Okay o! undecided

Add number 9; Banana Iceland Bank... Since una no wan help una self!

A thorough audit of these institutions will surprise even Lucifer.. "Creative Accounting", i hail una for Naija... Continue deceiving yourselves! angry

39 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:55pm On Nov 12, 2013
pelhurmy: plz,wea is WEMA bank



Dont worry, it'l make the first list among the remaining 18 to fail.
cool

3 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by oche419: 4:56pm On Nov 12, 2013
FIRSTBANK! Truly the first. grin

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Trueigbo: 4:56pm On Nov 12, 2013
Please do not post adverts in this section, to avoid being banned.

So much threat on nairaland dis days.

Wetin I. Wan write self

6 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Ogbuefienubiaka: 4:57pm On Nov 12, 2013
This CBN is just dum and not ready to learn anything. i work in one of the 8 banks mentioned that this kind of statement is not fair to others and to the industry as whole.

our CBN should should be sent to USA and advanc societ to learn why these regulators there hardly ever make any statement .

i hope this will not lead to another run on the other banks. just pity them

19 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Nobody: 4:57pm On Nov 12, 2013
The same way we were told oceanic and inta were the biggest banks in africa. Mtcheeeew!

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by shejane: 4:57pm On Nov 12, 2013
Der shd do more dan der strength 2 secure our banks, we can't lose all in dis co3

GTB is going 4m strength 2 strength every year, dats gud

1 Like

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Adikam(m): 4:57pm On Nov 12, 2013
pelhurmy: plz,wea is WEMA bank
dey re into daily contribution now dey go soon visit ur area

2 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Dharn(m): 4:57pm On Nov 12, 2013
Dominionng: Like always.. First Bank will everly delay!
first bank my bank always
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by Trueigbo: 4:59pm On Nov 12, 2013
What happens to the. Like of Union bank- big strong reliable

3 Likes

Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by hydoo(m): 4:59pm On Nov 12, 2013
#gtbank
Re: "Eight Nigerian Banks Are Too-Big-To-Fail!" - CBN by goldenspoon: 4:59pm On Nov 12, 2013
nawa oo wetin concern me jore..

3 Likes

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