AMCON Declares Bridged-Banks Safe

The Assets Management Corporation of Nigeria (Amcon) has passed a vote of confidence on the three- bridged banks, describing them as safe and sound.

 
Mustapha Chike-Obi, managing director, Amcon said Mainstream Bank Limited, Enterprise Bank Limited, and Keystone Bank Limited are now financially strong after they have received over N1 trillion bailout fund.


The Amcon boss said the banks are poised for greater performance, since they have overcome their initial challenges.


"The three bridged-banks are among the most capitalised in the world now because all their problems have been solved. They are safe and sound like any other bank in the country. Hundreds of banks have been liquidated in the United States. But here, it is a different situation. The primary objective is that the depositors have not lost a kobo. That has been accomplished. The employees and depositors are safe."


He said corruption, mismanagement and lack of capacity are the problems that culminated in the take-over of the five troubled banks. He said the past managements of the banks did not know what they were doing, arguing that the issue seriously affected the banks’ performance. He said the issues have resulted in the merger and acquisition which the banks have just come out of.


He said the Nigerian banks would be among the best globally in five years time due to measures taken by the regulators to strengthen the industry. Chike-Obi said the banks are going to be stronger in assets and capital base, soon.


In a related development, Ibedu Onyebuchi Kevin, deputy director, Banking Supervision, Central Bank of Nigeria (CBN), said the troubled banks went through seamless mergers and acquisition. He said the CBN will encourage all the banks to sell their non-performing loans to stimulate their growth. He said the banks that took over the weaker banks have the financial muscles to turn them around.


He said AMCON has helped in mopping up the non-performing loans of banks, adding that the issue has rejuvenated the liquidity position of the banks.