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Nigerian central bank monitoring up to 2 more banks over liquidity issues

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Nigerian central bank monitoring up to 2 more banks over liquidity issues

The CentralBank of Nigeria is monitoring up to two other commercial banks thatfailed recent liquidity tests, although they are not in the same situation asSkye Bank Plc, Reutersreported July 8.

Tokunbo Martins, banking supervision director at the centralbank, told a local television station: "We have our eyes on one or twoother banks right now but they are not in a state of distress. We have our eyeson all banks."

Martins added that Nigeria's banking industry was healthy,Reuters said. She cited excessive risk-taking and the government's transfer offunds from banks into the central bank in 2015 as among the reasons behindliquidity shortfalls at the lenders.

The central bank earlier overhauled Skye Bank's management team and board ofdirectors after it failed to meet minimum capital requirements.

Martins said Skye Bank's issues worsened because it failedto attract fresh funds after using short-term funding to finance itsacquisition of Mainstreet Bank in 2014. She added that the bank was able tomeet its obligations and that the central bank is providing the lender supportuntil its new management raises fresh capital, Reuters said.