Five more Nigeria bank chiefs summoned after audit

"The meeting is about to take place. It is connected with the second audit," a central bank spokesman said.

Five more Nigeria bank chiefs summoned after audit

The Nigerian central bank said on Friday it had summoned the heads of five banks including Bank PHB, Spring Bank and Equitorial Trust Bank to a meeting following the completion of an audit.

"The meeting is about to take place. It is connected with the second audit," a central bank spokesman said.

The central bank injected 400 billion naira ($2.6 billion) into five other banks on Aug. 14 and sacked their senior management after auditors found lax governance had left them so weakly capitalised they posed a systemic risk.

The bailout of Afribank, Finbank, Intercontinental Bank, Oceanic Bank and Union Bank sent shockwaves through the financial establishment in sub-Saharan Africa's number two economy.

Five other banks were given the all-clear in that first round of auditing.

Central Bank Governor Lamido Sanusi told stockbrokers last month that the results of an audit of the country's remaining 14 banks would be announced in early October but said they appeared in better health that those already examined.

A source close to the regulator said last month that some infractions had been found at the remaining banks, but none on the scale of those at the first five bailed out in August.


Reuters

Last Mod: 02 Ekim 2009, 15:17
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