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CBN Gives Clean Bill of Health to 78 Banks Banking By Ayodele Aminu The Central Bank of Nigeria (CBN) yesterday clarified the controversy surrounding the health of the banking industry saying that at least 78 out of 89 banks that operated in 2003 were healthy. Deputy Director, Corporate Affairs, CBN, Mr. Tony Ede who made this clarification in a statement made available to THISDAY in Lagos yesterday, was reacting to a newspaper report (not THISDAY) captioned "Only 11 Banks Healthy, Says CBN." While maintaining that the publication is misleading and capable of destabilizing the banking system, the apex bank stressed that the article, curled its Annual Report and Statement of Accounts for the year ended 31st December 2003 indicating that "only 11 of the 69 banks in the country could be classified as sound during the year" was misrepresentation of facts. "The number of licensed banks quoted is not only incorrect, the context in which the word "sound" was used is alarmist as it tended to suggest that only sound banks are healthy which does not conform with the conventional prudential rating. "For the avoidance of doubt the number of licensed banks in the country as at the end of 2003 was 89, while the rating of banks is quarterly activity, classifying banks as "Very Sound" "Sound", "Satisfactory", "Marginal" and "Unsound". "Banks in all these categories except unsound banks are therefore considered healthy and would normally not call for undue concern by the regulatory authorities. By implication, at least 78 banks should be considered healthy," stated the banking watchdog. The CBN therefore assured the public that its publication on surveillance is a routine report on the activities of financial institutions, pointing out that the overall health of the banking system is generally satisfactory. "Members of the public who may wish to read the full report can download the material from the bank's website, www.cenbank.org, or obtain copies from the Research Department," the statement advised. Who Are We ? | About THISDAYOnLine.com | THISDAY People | Contact Us © Copyright 2000 Leaders & Company Limited

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