A
militant group in the Niger Delta, Iduwn Volunteers Force (IVF) has asked
President Muhammadu Buhari to halt the Central Bank of Nigeria's (CBN's) move
to forcefully wind up Skye Bank and some others under the pretence of 'Insider
Credits', describing it as 'an anti people’s policy.'
But
the CBN has calmed fears of possible distress in the banking industry,
insisting that the management of Skye Bank Plc voluntarily resigned to avoid
sack by the CBN for alleged failure to stabilise the fundamentals of banking
pre and post-acquisition of Mainstreet Bank Limited.
In
a statement yesterday by its Commander, Johnson Biboye, the IVF urged the
President to intervene and halt the move by the CBN.
Aside
from the militants, some major shareholders in the banking sector have also
asked the President to prevail on the CBN Governor, Mr. Godwin Emefiele to
withdraw a letter addressed to 11 banks, including Skye Bank Plc, compelling
them to bring 'insider-related credits' before December 31.
They
insisted the measure would throw the country into economic instability should
the apex bank be allowed to go ahead with its planned directive as the plan was
nothing but to take over the 11 banks.
The
CBN had in a letter dated January 22 and signed by its Director of Banking Supervision,
Mr. Benjamin A. Fakunle, asked the banks to bring 10 per cent of their paid-up
capital per director before December 31.
The
letter stated: "The Central Bank of Nigeria has granted an extension of
time till December 31, 20 I6 to enable you bring your insider related credits
within the stipulated regulatory maximum of 10% of your Paid-up Capital per
director including his/her related parties and 60% Paid-up Capital for total
related credits in line with our circular BSD/9/2004 on Large Exposures and
Connected Lending. You are, however, required to provide quarterly
report/update on the progress made."
Six
months before the expiration of its directive, the CBN has allegedly sacked
Skye Bank management.
Angered
by this, the militant group threatened to launch an attack should the President
fail to prevail on the apex bank to rescind its decision to takeover the banks
'under whatever guise.'
They
asked the President to remove Emefiele from his position, describing his policy
as not only anti-people but "a well-orchestrated plan by the CBN boss, to
systematically collapse the nation's economy, so that global watchers could
make mockery of your government and finally turn Nigeria to a laughing stock
locally and internationally."
The
CBN's intervention affected the bank's Chairman, Tunde Ayeni, Managing Director
and Chief Executive Officer, Mr. Timothy Oguntayo, as well as two long-serving
executive and non-executive directors.
According
to CBN, the dissolved management team had failed to maintain the regulatory
threshold of the industry's liquidity ratio; capital adequacy level; and the
required Non-Performing Loans (NPLs) ratio.
Emefiele,
at a press conference to announce the development and the newly appointed
management team, comprising M.K. Ahmad as chairman; Tokunboh Aberu, managing
director; two new executive directors and five non-executive directors, said
the intervention became necessary as the team seemed to have run out of ideas
on how to redirect the financial institution.
It
was also to forestall further erosion of values from reaching the point that it
could pose greater challenge to re-order the bank, he said.
"It
has nothing to do with being in distress. We do not want the liquidity and
adequacy ratio to worsen to the point that depositors' fund gets into risk,
"he remarked.
Meanwhile,
Emefiele has assured that the strategic health of the banking industry remained
sound. He added that if there was a need to inform the general public about the
strategic health of the banks, CBN will do so.
SOURCE: THE GUARDIAN.