More trouble for banks as CBN says two others have failed liquidity tests

Less than one week after the Central Bank of Nigeria (CBN) took over management of Skye Bank, the apex bank has disclosed that “one or two others” were in distress.

CBN had earlier in the week dissolved the board of Skye Bank.

It explained that the decision was a measure to prevent a total collapse of the bank.

Skye Bank is believed to have an estimated non-performing loan portfolio of N700bn, much of which is due to an over exposure in the oil and gas sector.

All its directors and executives, except three who joined the bank last year, were removed.

Speaking yesterday to Channels Television, CBN Director, Banking Supervision, Mrs. Tokunbo Martins, said “one or two” commercial banks had failed liquidity tests but they were not in the same situation as Skye Bank.

“We have our eyes on one or two other banks right now but they are not in a state of distress. We have our eyes on all banks”.

She, however, assured that Nigeria’s banking industry was healthy.

Already, CBN has installed Mr Tokunbo Abiru as Skye Bank new Chief Executive Officer following the resignation of Timothy Oguntayo from the position.

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