CBN to submit 14 banks audit for review in two weeks
Friday Ekeoba, Lagos with Agency Report - 22.09.2009

THE Central Bank of Nigeria (CBN), on Monday, said it would submit for final review, audit results of the remaining 14 banks in two weeks, even as it stated that they appeared to be in better health than those already examined.

The apex bank said it injected $2.6 billion (N420 billion) into five banks in August 14, after finding out that were so weakly capitalised and that they posed a systemic risk to the economy.

The earlier move by the CBN sent shockwaves through corporate Nigeria, and triggered a sell-off of banking stocks just as investors were worried whether more liquidity problems would be exposed as the audit continued on the other financial houses.

The report said CBN examiners had completed their audit of 11 more banks and made significant progress on the remaining three institutions – Citibank, Stanbic IBTC and Standard Chartered.

“The CBN confirms that the completed reports are due to be presented to and deliberated upon by the committee of governors of CBN and the executive committee of the Nigeria Deposit Insurance Corporation (NDIC) in the next two weeks,” the report said.

The examiners’ report is expected to be made public after the final review by senior CBN officials, which include its governor, Mr. Lamido Sanusi.

A source close to the regulator, earlier this month, had said that examiners found some infractions in the 11 banks, but none on the scale of those at the five rescued banks.

“Based on the reports received so far, the clear indications are that the bulk of the problems have been effectively dealt with in the first round,” the CBN said.






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