Having completed the second and
final phase of its audit of the Nigerian banking sector in an
attempt to restore financial stability to the industry, the
country’s central bank (CBN) has dismissed the managing directors
and executive directors of three banks – Bank PHB, Equitorial Trust
Bank and Spring Bank – which it said were in a “grave situation”
seven weeks after similar sanctions were applied to senior
management at five banks (see RBI
618).
The CBN examination focused on the banks’
liquidity and corporate governance, resulting in the four banks in
the worst state requiring a bailout of around NGN200 billion ($1.32
billion) in total.
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Amid the ongoing chaos within the country’s
banking sector, CBN deputy governor Babatunde Lemo told local media
that one likely effect of the crisis would be a wave of further
consolidation, with the current 24 banks in the country likely to
be reduced to around 15.
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