CBN gov allays fears over future of sick banks

THE Governor of theCentral Bank of Nigeria (CBN), Mallam Lamido Sanusi, has allayed fears over some of the sick banks that are yet to get new investors.Speaking at the World Economic Summit in Cape Town, South Africa, on Thursday, Sanusi stated that all of Nigerias systemically important banks rescued in a bailout two years ago would find new investors, with four of them already agreed in principle on mergers.The apex bank, in 2009, injected N620 billion into nine banks deemed by auditors to have become so weakly capitalised, that they posed a risk to the entire banking.Asset Management Ccompany (AMCON) has been set up to restore them to zero shareholders funds, but new investors have been sought to bring them up to minimum capital adequacy.I dont think there are any that will never get sold. Four are certainly on their way to mergers. Two more have suitors, very good suitors, but we couldnt agree on commercial terms, he said.
Click here to read full news..