It’s a good omen for banking sector – Expert

“I think this is normal practice worldwide when a bank loses its capital beyond required minimum regulatory capital, then CBN takes over. In this case the CBN had two options which are whether to allow the NDIC to take over or injection of fresh funds. But it opted for fresh funds of N400 billion.” Agbaje […]

“I think this is normal practice worldwide when a bank loses its capital beyond required minimum regulatory capital, then CBN takes over. In this case the CBN had two options which are whether to allow the NDIC to take over or injection of fresh funds. But it opted for fresh funds of N400 billion.”

Agbaje said the reason why the apex bank changed the management was to ensure that the fresh funds put into the bank is properly managed and protected and it goes into the system.

On whether the CBN’s actions would lead to crisis in the banking sector, Agbaje said this would not happen as the CBN governor has reassured both depositors and shareholders that their money is safe and intact.