Shareholders, analysts commend CBN for banking industry stability

Shareholders and public affairs analysts have commended the Central Bank of Nigeria (CBN) for ensuring the stability and safety of Nigerian banks through proactive measures.

President, Renaissance Shareholders’ Association, Ambassador Olufemi Timothy, who spoke on the stabilising role of the CBN, said the apex bank had acted responsively and proactively in the last couple of years to protect the shareholders.

According to the leading shareholder activist, who urged Nigerians to decry negative rumour making the rounds, said the interventions of the CBN over the years had ensured that no single Nigerian bank is distressed or in danger of collapse. 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 will be recalled that the Central Bank of Nigeria (CBN), had on July 4, 2016 intervened and re-constituted the Board of Skye Bank following the voluntary resignation of some members of the former Board, with the new Board swinging into action.

The regulator had subsequently extended guarantees to Depositors funds and other trading instruments of Skye bank in the interbank market to bolster 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 IGR 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.