N25bn Capital: Banks Chiefs Appeal to Customers
From Tunde Sanni in Ilorin
Banks chief executives in Ilorin weekend appealed to customers not to withdraw their deposits in panic due to the directive that banks recapitalise to the tune of N25 billion.
President of the Chartered Institute of Bankers (CIBN), Mr. Samuel Ereola Kolawole, who flagged off the smooth talk hinted that the banking industry is not rattled by the directive of the Central Bank of Nigeria (CBN) that banks increase their capital base from N2 billion to N25 billion effective December next year.
Kolawole who spoke at the annual dinner and award nite of the local CIBN in Ilorin assured that the banking sector would come out of the matter stronger.
He said that bank chiefs would be meeting again this week to review situation following CBN's release of guideline for mergers and acquisition last week.
Kolawole explained, however that the institute was not against the new capital base of N25billion.
"All we are saying is that whatever we want to do, let us be sure that we get it right and it should be holistic so that we don't just attack one angle leaving other angles because if we do that, we will not get the desired result," he added.
Kolawole assured the government and the CBN that the institute was ready to help strengthen the economy and the banking industry.
He assured depositors not to lose sleep on the N25 billion capital as "no customer would lose their deposit as a result of the new directive of the CBN".
"Whether or not your bank is merging with another bank or is still acquired by another bank, as a customer, your funding, your deposit, your business is assured.
"So I want to appeal to our customers to please concentrate and go about their normal business and not to worry about what happens to your businesses or your funding with us," he said.
He added, "N20 billion merger acquisition will not in anyway deplete or put your resources, deposits or resources in danger".
Earlier, the local chairman of the institute, Mr. Oyewole Fashanu, appealed to the CBN to extend the December 2005 deadline for banks.
He said that the extension would give room for proper planning to meet the financial obligation and / or allow for compatible merging of banks.
"To our customers, I must allay your fear following the recent CBN pronouncement on capitalization of banks".
"Be rest assured that bankers are used to and capable of handling professionally, stressful situations, for which this is no exception".
He advised that all the stakeholders should be involved in agreeing upon what to do, warning that "the merger option is like a marriage of two loved ones and if not properly planned and handled may hit the rock".
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