Nigerian regulatory body says no banks in financial distress

Nigeria's financial regulatory agency Thursday urged the public to ignore rumors of financial distress in some commercial banks.

Umaru Ibrahim, the Managing Director of Nigeria Deposit Insurance Corporation (NDIC) said in a statement reaching Xinhua in Lagos, the nation's economic hub that the NDIC had played a critical role in ensuring that banks were safe and sound through effective supervision and assistance over the years.

He said such rumors were being circulated via text messages and social media to de-market those banks and destabilize depositors' confidence in the banking system.

Ibrahim said the NDIC had continued to closely monitor the challenges facing the industry in order to further safeguard depositors' interest in the banking system.

He listed challenges affecting the banking industry to include poor corporate governance, insider loans and non-performing loans.

He said with NDIC's strict supervision and regulation of the banking industry in collaboration with the apex bank, depositors should have full confidence in the safety and security of their funds in licensed banks.

Nigeria's apex bank had in July 2016 sacked the management and Board of Directors of Skye Bank Plc following the bank's inability to meet minimum capital adequacy ratio requirement. Endit