CBN Gears for Possible Banks’ Meltdown

For the umpteenth time, the Central Bank of Nigeria Skip to next paragraphreassured last week that it is already working ahead of any possible failure by any commercial bank on an account of the emerging economic meltdown.
Acknowledging that the nation’s economy cam not withstand any bank collapse the Governor of Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo, however insisted that the banks were strong enough to withstand any shocks.
Addressing participants at a seminar which was organized by the CBN on the appropriate inflation, interest and exchange rate regimes, Soludo reiterated that the commercial banks were the drivers of the economy and assured that the apex bank was prepared for any eventualities that could threaten the banking system.
“The CBN has put in place an effective contingency plan, just in case. The economy cannot afford bank failure, so, we must do everything to ensure that no bank fails,” the apex bank boss said.
He gave an insight into the liquidity strength of the 25 banks saying that the total shareholders’ fund of Nigerian banks at present was in the neighbourhood of N2.8tn, adding that the amount was even higher than the nation’s 2009 budget.
Giving further insight, Soludo acknowledged that it was still very uncertain how long the global economic meltdown would last, but expressed optimism that the Naira could make a rebound form its present position before the end of the crisis, just as he disagreed with government’s palliative for the falling capital market.