Rescued Banks To Escape Liquidation

Sanusi Lamido Sanusi CBN Governor

The Central Bank of Nigeria may no longer need to liquidate rescued Deposit Money Banks as a result of the progress currently being made in their recapitalization process.

Following the dismissal of some court cases filed by shareholders of the banks, it was gathered that some of them had started finalizing plans to beat the CBN’s September 30 recapitalization deadline.

The Head, Corporate Affairs, CBN, Muhammed Abdullahi, who spoke with Punch correspondent in a telephone interview, said the various court rulings in favour of the CBN would allow the banks to finalize their recapitalization process before the stipulated time.

“It is the hope of the CBN that with the vacation of the court cases, the recapitalization process of the banks will be smooth and will be concluded before the September deadline,” he said.

The CBN had given eight rescued banks four months to fully recapitalize or risk being liquidated.

This followed the collapse of merger talks between the managements of some of the rescued banks and potential investors, as well as the delay in their recapitalization process.

Analysts and industry watchers however believe that the banks will scale the recapitalization hurdle following the dismissal of the suits by some shareholders and former Chief Executive Officers (CEOs).

 

 

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