NDIC Refunds Money to 182 Failed Bank Depositors, CBN, Experts Speak on Access, Zenith Others’
The Central Bank of Nigeria (CBN) has assured Nigerians that the banking system is healthy and has no cause for concern.
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The apex bank’s assurance comes as the Nigeria Deposit Insurance Corporation (NDIC) commences the process of paying depositors of failed banks. NewsReportNigeria gathered.
Legit. ng had earlier reported that the CBN had revoked the operating licenses of 182 banks, mostly microfinance banks and primary mortgage banks.
Heritage Bank recently came under the spotlight over its financial health. Photo credit:
Efforts are currently ongoing by the NDIC to ensure depositors with funds in the banks get their money back.
While the exercise has raised concerns among Nigerians about the financial health of other banks, the CBN, in its last Monetary Policy Committee (MPC) meeting for July 2023, assured Nigerians that there is nothing to worry about.
According to the apex bank, there is relative stability in key financial soundness indicators and the resilience of Nigerian banks.
Part of the communiqué issued after the MPC meeting reads: “In the Banking System, Financial Soundness Indicators (FSIs) remained stable and strong.
The Capital Adequacy Ratio (CAR) stood at 11.2 percent, the Non-Performing Loans (NPLs) ratio was 4.1 percent, and the Liquidity Ratio (LR) was 48.4 percent as of June 2023.”
A financial expert, Godwin Unegbu, who is the past president of the Chattered Institute of Bankers of Nigeria (CIBN), explained what could put a bank under stress.
He said: “When Nigerians borrow from the banks, they think the money is national cake.