The oil crash has people worried about a new banking crisis
Elena Holodny
BusinessInsider.com
July 7, 2016
Nigeria just put its banking system on alert.
The Central Bank of Nigeria announced earlier this week that it’s replacing the management of the country’s eighth biggest lender by assets, Skye Bank, after it failed to meet the minimum capital ratios, according to Bloomberg’s Emele Onu, Renee Bonorchis, and Paul Wallace.
The CEO, the chairman, and 10 directors on the bank’s board resigned on Monday.
The central bank added that Skye Bank’s non-performing loan ratio has been above the regulatory limit for some time now, according to Reuters’ Chijioke Ohuocha and Oludare Mayowa.
Speaking to reporters on Monday, the central bank’s governor, Godwin Emefiele, asserted that Skye Bank “is not in distress and remains a healthy bank in the system.” And on Thursday, the central bank said that all its banks are safe, and that “there is, therefore, no need for panic withdrawals from any bank,” according to Bloomberg’s Wallace.
However, these comments haven’t been enough to alleviate worries about the rest of the country’s banking system.
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