Only 3 banks sick last December – NDIC – Vanguard
November 16, 2009 by Bunmi Awolusi
Nigeria Deposit Insurance Corporation, NDIC, has said that as at the end of 2008, the Financial condition of banks in the country were generally satisfactory.
This means that the banks’ condition deteriorated between January and July 2009, necessitating the action by the Central Bank, CBN, on August 24, which led to the sacking of Managing Directors and Executive Directors of five banks.
The NDIC said that although about three banks were problematic as at December 2008, but that did not pose any threat to the financial soundness of the industry as they accounted for less than five per cent of the industry statistics.
The CBN Governor, Mallam Lamido Sanusi, while announcing the sack of Managing Directors of five banks on August 24 said the banks’ officials were removed due to high level of non-performing loans in the five banks which was attributable to poor corporate governance practices, lax credit administration processes and the absence or non-adherence to the banks’ credit risk management practices.
