One or Two Other Banks Have Failed Liquidity Test - CBN

The Central Bank of Nigeria might also replace the management of some commercial banks in Nigeria over liquidity just as it did to Skye bank.

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

The central bank on Monday said Skye Bank’s liquidity ratio had been below the regulatory limit for a while and it had resorted to its rediscount window for support, prompting its top executives to resign.

But Martins said the central bank was working with the banks to restore their ratios and sought to reassure depositors that there was no need to panic.

“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,” Reuters quoted her to have said on Channels television.

After replacing Skye’s executives on Monday, depositors rushed to withdraw their funds. Martins said Skye was able to meet its obligations and that the central bank was providing support until the new management can bring in fresh funds.

The CBN during the week reiterated that no bank in the country is in distress, just as it reassured bank customers that their deposits are safe.