CBN Ultimatum: Bank Directors Know Fate this Week
FEARS of losing investment and positions have griped directors of banks as they await the verdict of the Central Bank of Nigeria (CBN) following the expiration of the December 31,2009 deadline for them to regularize their non-performing facilities.
BusinessWorld Intelligence can reveal that many of the directors who failed to regularize their non- performing facilities have subjected the CBN to immense pressure to extend the deadline for the exercise which is one of the measures being taken by the apex bank.
A well placed source told BusinessWorld that the directors are employing the services of the presidency and members of the National Assembly to lobby the CBN to extend the deadline for the exercise. It was gathered that the moves made by most of the directors to regularize their facilities, including selling off of their holdings in the stock markets fell short of raising the required funds to meet their obligations in the market.
The CBN has directed all executive and non-executive directors with non-performing facilities, either in their banks or other banks and financial institutions to regularize such facilities on or before November 30, 2009 failing which their appointments would be reviewed by December 31, 2009.
The order was served to about 500 directors of the 24 banks through a memo titled ‘Proposed Review of the Appointments of Executive and Non-Executive Directors in Banks’ sent out to all the banks. Debtor directors were known to have embarked on massive disposal of their various fixed assets, most of which did not attract buyers.It is believed that the apex bank may succumb to pressure for possible extention. As at close of banking activities last friday, restive bank directors were seen making last minute efforts.
BusinessWorld Intelligence can reveal that many of the directors who failed to regularize their non- performing facilities have subjected the CBN to immense pressure to extend the deadline for the exercise which is one of the measures being taken by the apex bank.
A well placed source told BusinessWorld that the directors are employing the services of the presidency and members of the National Assembly to lobby the CBN to extend the deadline for the exercise. It was gathered that the moves made by most of the directors to regularize their facilities, including selling off of their holdings in the stock markets fell short of raising the required funds to meet their obligations in the market.
The CBN has directed all executive and non-executive directors with non-performing facilities, either in their banks or other banks and financial institutions to regularize such facilities on or before November 30, 2009 failing which their appointments would be reviewed by December 31, 2009.
The order was served to about 500 directors of the 24 banks through a memo titled ‘Proposed Review of the Appointments of Executive and Non-Executive Directors in Banks’ sent out to all the banks. Debtor directors were known to have embarked on massive disposal of their various fixed assets, most of which did not attract buyers.It is believed that the apex bank may succumb to pressure for possible extention. As at close of banking activities last friday, restive bank directors were seen making last minute efforts.
