The Central Bank of Nigeria (CBN), in its economic report for the half year ended June 2018 sounded a note of caution concerning three financial institutions in the country. The banks which were not named failed to meet liquidity requirements.
With the exception of three (3) commercial banks, all others met the minimum regulatory liquidity ratios of: 30.0 per cent for commercial banks; 20.0 per cent for merchant banks; and 10.0 per cent for non-interest banks, at end-June 2018.
What liquidity ratio means
Liquidity ratio is the ratio of a banks liquid assets to its liabilities. In other words, a banks cash balance plus assets that it can easily convert to cash to the total liabilities owed by the bank, which is typically your deposits.
A liquidity ratio is important because it states how much cash a bank has to meet the request of its depositors.
A pointer to the banks
While not stated, the defunct Skye Bank (now Polaris Bank Limited) may have been one of the affected banks. The CBN had in September this year revoked the operating license of the bank and handed over its assets and liabilities to a bridge bank Polaris Limited.
CBN Governor, Godwin Emefiele in a press release, stated that the bank’s licence was revoked as the CBN was unwilling to provide liquidity indefinitely.
The result of our examinations and forensic audit of the bank has, however, revealed that Skye bank requires urgent RECAPITALIZATION as it can no longer continue to live on borrowed times with indefinite liquidity support from the CBN.
Why the suspense???
Mentioning the bank names could lead to a run on the banks in quote. The banks affected are known to the investing community. The CBN has also begun to deal with the affected banks such as SKye Bank ( now Polaris).
Do animals think ? I think so,i have just watched a film about how a pride of lion hunt,they ambush their victims,they uses tall grass to camouflage theirselves,at appropriate time,they spring at their,MAYBE THE GOVT AND THE BUSINESS COMMUNITYOR THE BANKING SECTOR SHOULD AIMS FOR CO-OPERATION INSTEAD OF COMPETITION
Every organisation always devises strategic aim for their purposes,sometimes we learnt from the behaviour and mannerism of animal,in the Chinese martial art,they imitates animals in fighting style.e.g monkey style,snake fighting style,tiger or cat fighting style,we do have a drunken master fighting style,we also have playing mantis fighting style
There is a popular martial art fighting style,which have become very popular in hong kong films recently,it is called the wing chun,in this fighting style,you must put your hands in the centre of your opponent,you blocks your opponent from using his/her hand or legs effectively or efficiently,once you block,you counter-attack towards youropponnent
I think shabaka the Zulu of south Africa,uses this military strategic aim,a form of stalking (a)ambushing (b)suprising attack (c)sorrounds the enemy,you devise an airtight strategic aim,the enemy will not escape.God saves use in Nigeria,we are reading that the PDP is employing some American PR company,what is our pride in our country ?,we do not have any thing common with white American except police brutality against Africans of colour in America discrimination against African of colour in America.WILL AMERICAN INITIATIVE WORK IN NIGERIAN SOCIETY ?Nigerian politician should not forget those americans in Nigeria,are for themselves,not for us Nigerians
If PDP wants to defeat Mr Buhari,they should go for the voters,the masses,the next is what does the voters wants ?,they wants to be happy,respected and being comfortable and proud being Nigeria ?,can I have access to affordable healthcare.,finance if the Pdp wants to win they must require the co-operation of all to move forward