Shareholders and public affairs analysts have praised the Central Bank of Nigeria (CBN), for taking measures to stabilise and safeguard the banking sector.
President, Renaisssance Shareholders’ Association, Olufemi Timothy, who spoke on the role of the apex bank, said the CBN acted wisely and proactively in the last couple of years to protect shareholders.
He urged Nigerians to decry negative rumour making the rounds, insisting that CBN’s interventions over the years ensured that no bank is distressed. He said such interventions have preserved shareholders’ interest and value.
“I can tell you authoritatively that our banks are strong and safe. Despite the global economic recession, and the attendant effect on the financial system, our banks are robust and healthy. The apex bank’s interventions have strengthened our banks”, he said.
It would be recalled that the CBN, had on July 4, 2016 intervened and re-constituted the Board of Skye Bank Plc following the voluntary resignation of some members of the former Board, with the new Board swinging into action.
The CBN subsequently extended guarantees to depositors funds and other trading instruments of Skye Bank in the interbank market to boost operators’ confidence in the bank.
As a mark of renewed confidence in the board and management of the bank, some state governments, notably Lagos threw its weight by entering into a strategic partnership with the bank, followed by renewal of Internally Generated Revenues mandates from others states like Bauchi, Nasarawa, Kano among others.
Similarly, a renowned economist, Dr. Biodun Adedipe praised the resilience of Nigerian banks in the face of a tough operating environment.
Adedipe, who is also the Lead Strategist at Adedipe & Associates, said recent reports from the apex bank have confirmed the position of analysts that the banking industry is stable and safe. He said the CBN demonstrated good judgment by intervening where necessary, adding such interventions have strengthened the industry.