New Threats Against Banking Reforms
- By Business World
- Published January 17th, 2011
- News
- Unrated
The ongoing reforms in the banking industry may suffer serious setback if the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC), the anti-graft agency, do not urgently address the de-marketing and deliberate efforts by some faceless individuals to cause a run on some banks.
BusinessWorld Intelligence gathered that in their desperation to destabilise especially the rescued banks, these unknown persons and their agents are circulating false information through text messages that some banks are in the process of being liquidated by the CBN.
Our investigations reveal that many customers of these banks being targeted at by the damaging messages have started withdrawing their money while others are moving theirs to other banks. This development, it was gathered, is putting tremendous pressure on the banks as they are faced with the challenge of discouraging their customers from this kind of withdrawals.
The CBN had in a press statement penultimate week signed by Mohammed Adullahi, head of Corporate Communications, said the attention of the apex bank has been drawn to SMS being circulated alleging that the CBN is about liquidating some banks, but that there was no iota of truth in the message. “The CBN wishes to state categorically that no such liquidation notice has been issued and that there is therefore no plan to liquidate any bank”. The statement therefore advised all depositors to continue to conduct their business with all banks.
Though the CBN has condemned the ugly development, Mr. Boniface Okezie, chairman, Progressive Shareholders Association of Nigeria (PSAN), said the apex bank should intensify efforts to stop the de-marketing of some banks, adding that such action if not stopped is capable of scuttling the ongoing reform in the banking industry.
He, however, said the apex bank should take decisive actions, involving the EFCC to get to the root of the matter, which he said could jeopardise the gains of the reform if not properly tackled.
Okezie said proper investigations into the matter has become necessary due to allegations that the executive management team of some of the rescued banks are engaged in activities that is aimed at reducing the value of their banks and thereby making it possible for some preferred core investors to take over the banks at give-away price.
BusinessWorld Intelligence gathered that in their desperation to destabilise especially the rescued banks, these unknown persons and their agents are circulating false information through text messages that some banks are in the process of being liquidated by the CBN.
Our investigations reveal that many customers of these banks being targeted at by the damaging messages have started withdrawing their money while others are moving theirs to other banks. This development, it was gathered, is putting tremendous pressure on the banks as they are faced with the challenge of discouraging their customers from this kind of withdrawals.
The CBN had in a press statement penultimate week signed by Mohammed Adullahi, head of Corporate Communications, said the attention of the apex bank has been drawn to SMS being circulated alleging that the CBN is about liquidating some banks, but that there was no iota of truth in the message. “The CBN wishes to state categorically that no such liquidation notice has been issued and that there is therefore no plan to liquidate any bank”. The statement therefore advised all depositors to continue to conduct their business with all banks.
Though the CBN has condemned the ugly development, Mr. Boniface Okezie, chairman, Progressive Shareholders Association of Nigeria (PSAN), said the apex bank should intensify efforts to stop the de-marketing of some banks, adding that such action if not stopped is capable of scuttling the ongoing reform in the banking industry.
He, however, said the apex bank should take decisive actions, involving the EFCC to get to the root of the matter, which he said could jeopardise the gains of the reform if not properly tackled.
Okezie said proper investigations into the matter has become necessary due to allegations that the executive management team of some of the rescued banks are engaged in activities that is aimed at reducing the value of their banks and thereby making it possible for some preferred core investors to take over the banks at give-away price.
