Nigerian Bank Nigeria CBN Central Bank Of Nigeria – Customers Laud CBN Over Wema, Unity Banks, Task Banks Management

Source: Compass, 30 June.2010

Customers of Wema and Unity Banks in Lagos have commended the Central Bank Nigeria (CBN) for the three months extension granted the two banks to improve their capital adequacy to 10 per cent saying that the gesture would further sustain their loyalty to the banks.

However, they also urged the boards and managements of the two banks to ensure that the confidence reposed in them by the regulatory authorities, especially the Federal Government, is justified by their actions to reposition the bank for operational efficiency by meeting the requirements for banking services in the country.

A customer at the Oba Akran Avenue branch of Wema Bank Plc, who simply identified herself as Mrs. Olusola, told Nigerian Compass that her mind had not been at rest over the fate of the bank since the reforms in the banking industry as most of the banks were said to be risky, adding that the situation of Wema and Unity banks were also peculiar based on the deadline set by the CBN.

“I have been with the bank for over ten years. And to most of us who have been doing business with the bank for so long a time felt we were about to lose something big that has been part of us. But thank God that CBN has given another three months of grace. So, we are pleading with the management to do everything in order to keep the bank going. It will not be good for Wema Bank to die like that. Let them work hard and meet the condition should do now is to see how they can meet the target and ensure that they keep their customers. If they fail to act by raising the capital adequacy level set by CBN”, she urged.

Another customer at the Maryland branch of the bank, who simply identified himself as Segun for privacy reason, thanked CBN for “giving the management of the bank another opportunity to exist. So, what they can do is to ensure that they meet the deadline set by the authorities. If they fail again, I think that would be very bad for them and the legacy they have built over the years”.

When Nigerian Compass visited the Oba Akran branch of Unity Bank Plc yesterday, one of the customers, Alhaji Muhammed expressed delight that CBN has offered the management of the bank the opportunity to improve their operations, adding that “the only thing we can say is that we are happy and want to advise the board and management to ensure that the bank does not die. They should work to make it big, united as the name implies and ensure that we enjoy good service as we used to”.

The CB yesterday had in a statement extended the deadline set for the banks to increase raise their capital adequacy ratio and improve operations generally by 10 per cent from June 30 to September 30 ostensibly to give the owners a last chance opportunity to reposition the banks for sustainable growth.

As part of their past efforts to meet the June 30 deadline, the owners of Wema Bank Plc had been exploring the option of improving the bank’s capital adequacy through foreign equity participation and internal control strategies that have helped in improving its balance sheets in the past few months, the Board, management and shareholders of Unity Bank Plc opted for rights issue option to enhance its financial position.

Similarly, the board of directors of Unity Bank Plc and its financial advisers had on Wednesday, May 26, 2010 in Abuja rose from a completion board meeting decided to roll out 23.928 billion ordinary shares of 50 kobo each at N1 per share to shareholders on the basis of three new shares for every two shares already held.

Nigerian Bank Nigeria CBN Central Bank Of Nigeria, Unity Bank Plc, Wema Bank Plc