August 20, 2009

Inside sources in the banking industry have confirmed a notable movement of funds between Nigerian banks this week.The sudden transfer of funds is coming after the Central Bank’s declaration last Friday that some banks were in a grave situation and couldn’t continue business as usual, without the regulatory body’s intervention.

Sanusi Lamido Sanusi, the Central Bank governor, explained to journalists on Friday that: “Having reviewed all the reports of the examiners and the comments of the Directors and Deputy Governors, I am satisfied that these five institutions (Oceanic Bank, Afribank, Fin bank, Intercontinental Bbank and Union bank) are in a grave situation, and that their management have acted in a manner detrimental to the interest of their depositors and creditors.”