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CBN silent on EFCC’s alarm over imminent collapse of some banks due to NPLs

Strangely unlike before, the Central Bank of Nigeria (CBN) is yet to respond to the revelation of the Economic and Financial Crimes Commission’s (EFCC) acting chairman, Mr. Ibrahim Magu, that health of some commercial banks are so impaired that they may collapse any time sooner.

In an interview with a senior official of the apex bank on grounds of anonymity, he argued that “no Nigerian bank is facing distress and if ever there is a related case, only the CBN can determine that”.

EFCC boss had averred that some banks (names with held) were on the verge of collapsing because of huge non-performing loans (NPLs).

Making the revelation in Lagos during an interactive session with Association of Chief Compliance Officers of Banks in Nigeria (ACCOBIN), Magu however, urged compliance officers in banks to be more diligent in their responsibilities, as a way of tackling money laundering and other fraudulent practices in the sector.

He noted that their strict vigilance would go a long way in taming incidences of NPLs which are currently frustrating several banks.

Magu made it clear that “We need to find a common ground to work together. You have a responsibility to fight corruption. The Commission is ready to partner with you to ensure a healthy economy.

“We are ready to assist the banks in recovering their debts, but compliance officers must ensure

“I know you sometimes need to protect some of your customers. But it is sometimes better that you do without some of these people; otherwise, you will be seen as conspiring with them to steal public funds,” he said.

Before now, the CBN had been planning to conduct fresh stress test on banks, but has not; thus forcing industry observers to begin to feel that CBN was fearing the results of any stress test on Nigerian banks due to downturn in the economy in the last few years.

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