LAGOS—THE Central Bank of Nigeria (CBN) yesterday accused the banks of not saying all about the earning figures quoted in advertisements of their public offers. The apex bank at the 276th Bankers Committee meeting held in Lagos expressed concern over the way the banks were using their annual reports to arrive at returns, aimed at attracting investors to buy their shares.
Addressing financial journalists at the end of the meting, CBN Director, Banking Supervision, said some of the figures quoted by the banks were not entirely true. "The bogus earning returns being branded by the banks are a matter of the number of years being considered by the banks in the computation of their returns and earning potentials.
"Though the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) are responsible for capital market activities, the CBN is worried about this development, and has been reviewing some of this development. For example, an organisation doing private placement is not supposed to embark on advert campaign but what has been happening is that you find advert fliers of banks doing private placement, tucked inside newspaper. This is a serious irregularity and we are concerned," he said.
The CBN governor, he said, reminded the banks that the apex bank was under obligation to disown, denounce or make a statement to the public that the facts contained in the adverts were not credible or should not be acceptable.
Imala also said the CBN was still investigating the involvement of banks in foreign exchange malpractices. The apex bank governor, he said, made it clear to the bank chief executives that maximum sanctions including suspension of authorised dealership certificate, would be imposed on any bank indicted by the investigation.
Meanwhile, the Bankers Committee decided to review the Small and Medium Industries Equity Investment Scheme (SMIEIS). Managing Director/Chief Executive, Standard Trust Bank, Mr Tony Elumelu, said a committee had been set up to review the scheme. The purpose of the review is to enhance disbursement of funds set aside for the scheme. He noted that only 40 per cent of the fund set aside by banks had been disbursed so far.
"We should be aiming at 100 per cent disbursement and not 40 per cent. Hence the committee has been mandated to look at areas of the guideline that needs to be modified, to achieve a faster pace of disbursement," he said.
