The Central Bank of Nigeria (CBN) has dismissed speculations that Diamond Bank Plc and eight other Nigerian banks have low capital adequacy, stating that the story was not only false but also outside the realm of facts.
According to the CBN Governor, Godwin Emefiele, “there is no Nigerian bank that has capital adequacy problem today and all the news around that is false. We stress-test banks’ balance sheet and profit and loss accounts on a regular basis using different scenarios. That is what we do as a responsible central bank that monitors the strategic health of the banks. We carry this exercise out as a practice and I hope this puts this matter to rest.”
In his reaction to the story, the Director, Banking Supervision, CBN, Tokunbo Martins, stated that the report is far from the truth.
“That report is not true, I don’t know where the online publication got the report. All Nigerian banks are sound, we stress-test the banks regularly. Our stress test has not revealed anything that shows that the banks are in danger.”
Also, the Director, Communication, CBN, Ibrahim Muazu, in a statement on the matter, described the report as fictitious, stating that no Nigerian bank was “experiencing distress.”
“The story as published is not only false and baseless but a figment of the writer’s imaginations. The CBN hereby assures the banking public that the Nigerian banking system is sound and all banks are in compliance with both the regulatory and prudential requirements.”
Diamond Bank Plc had earlier dismissed the media report by Sahara Reporters suggesting that the bank was distressed.
Describing the story as “false and malicious”, the bank in a statement issued and signed by the Head, Corporate Communications Division, Mrs. Ayona Trimnell, debunked the report, insisting that Diamond Bank is healthy and meeting its financial obligations as required by the regulatory body.
“Our attention has been drawn to a malicious story published by Sahara Reporters alleging that Diamond Bank Plc is one of nine commercial banks that have demonstrated a level of distress that requires they recapitalize to avert the banks possibly falling into distress.”
“Our customers, stakeholders and indeed the general public should please disregard the said report and be informed that the story is false, baseless, mischievous and attention seeking.”
“Diamond Bank’s Q3 2015 result approved by the Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE) show capital adequacy ratio of 18%, which is 3% higher than CBN’s minimum requirement,” the statement said.
Diamond Bank Plc operates as a full service commercial bank in West Africa and the United Kingdom.
The Bank is recognized for its market-leading retail franchise, having extended loans to more than 120,000 MSMEs in Nigeria since 2009, and innovation in e-banking (Diamond Mobile app) and banking the un-banked (Diamond Y’ello account and BETA banking proposition).
The bank has won several awards, including IFC’s Award for Best Issuing Bank in Sub-Saharan Africa, Best Credit Card in Nigeria, and Best Bank in Oil and Gas Investment.
In 2013 the bank was declared one of eight Systemically Important Financial Institutions (SIFIs) by the CBN.