Crux Polaris
21 October 2005, 08:35
New groups forming, and at least 3 bank directors under fraud investigation. Story Here. (http://today.reuters.com/news/newsArticleSearch.aspx?storyID=133787+14-Oct-2005+RTRS&srch=Nigerian+law)
New bank groups emerge from Nigeria consolidation
Fri Oct 14, 2005 8:07 AM ET
By Oludare Mayowa
LAGOS, Oct 14 (Reuters) - Twenty-one new banking groups have
emerged from a forced consolidation process in Nigeria, 11 weeks
before a deadline for new capital requirements takes effect,
banking sources and officials said on Friday.
Another four independent banks will meet the minimum capital
requirements and are expected to go it alone, while 20 banks do
not currently meet the guidelines and will have to cease banking
on Jan. 1 unless they find new capital before then.
In an effort to strengthen the weak and overcrowded sector,
the central bank announced in July 2004 a 12-fold increase in
minimum capital requirements to 25 billion naira ($190 million),
to be achieved by Dec. 31 2005.
The latest list of 21 new groups consists of 65 formerly
independent banks which have joined or intend to join forces to
meet the requirements. The list changes constantly as some
previously announced mergers have failed and others have been
established.
Three of the new groups -- Access Bank, Intercontinental
bank and UBA -- have formally concluded their mergers, while a
fourth, First Inland Bank, is on the verge of holding the
shareholder meetings required by law to ratify the merger.
Other new groups are required to formalise their mergers by
the end of October, although the deadline for the new capital
base is still Dec. 31.
The 20 banks that do not currently meet the new rules will
have to cease banking from Jan. 1 unless they find merger
partners or capital before then. Some of these banks are in
talks and may yet meet the deadline, bankers said.
Banks have raised 241 billion naira ($1.8 billion) from the
local bourse through equity issues since July 2004, and 6.7
billion naira ($50 million) was injected from abroad through the
capital market.
The central bank last month instructed banks that no more
equity issues will be allowed. The bank also directed that funds
raised through the offers should be lodged in a central bank
escrow account to safeguard the interest of investors.
Directors of at least three banks are under investigation
for fraud and have had their passports seized by law enforcement
officials.
The central bank last week assumed control of Allstates
Trust Bank after it stopped paying depositors' money, and the
bank is expected to be recapitalised within the next few days.
Nigeria had 89 banks at the beginning of the consolidation
process in July last year, including two small commercial
institutions that were already bankrupt.
Following is a list of the new groupings:
1. Access Bank (ACCE.LG: Quote, Profile, Research)
Access Bank, Marina Intl. Bank, CapitalBank.
2. Afribank (AFRB.LG: Quote, Profile, Research)
Afribank, Trade Bank (TRDB.LG: Quote, Profile, Research), NNB Intl., Afribank Intl.
(Merchant Bankers).
3. Bank One Plc
Co-operative Bank (COOP.LG: Quote, Profile, Research), Omegabank (OWBK.LG: Quote, Profile, Research), Trans
Intl. Bank (TIBP.LG: Quote, Profile, Research)
4. Citizens Bank
Citizens Bank, ACB Int Bank (ACBN.LG: Quote, Profile, Research), Guardian Express Bank
5. Diamond Bank
Diamond Bank (DAIM.LG: Quote, Profile, Research), Lion Bank (LBNP.LG: Quote, Profile, Research).
6. Equitorial Bank
Equitorial Bank, Devcom Bank.
7. FCMB (FCMB.LG: Quote, Profile, Research)
FCMB, Co-operative Devt. Bank (CODE.LG: Quote, Profile, Research)
8. First Bank (FBNP.LG: Quote, Profile, Research)
First Bank, FBN (Merchant Bankers), Eco Transnational
Incorporated (parent company of Ecobank Nigeria)
9. First Inland Bank
First Atlantic Bank (FABN.LG: Quote, Profile, Research), Inland Bank (INLB.LG: Quote, Profile, Research)
10. First North Bank
Bank of the North, NUB Intl. Bank, First African Trust Bank.
11. Fidelity Bank (FUMB.LG: Quote, Profile, Research)
Fidelity Bank, FSB Intl. Bank (FSBI.LG: Quote, Profile, Research)
12. IBTC (IBTC.LG: Quote, Profile, Research)
IBTC, Chartered Bank, Regent Bank
13. Intercontinental Bank (INBK.LG: Quote, Profile, Research)
Intercontinental Bank, Equity Bank, Global Bank,
Gatewaybank.
14. NAL Bank (NASLB.LG: Quote, Profile, Research)
NAL Bank, Indo-Nigeria Bank.
15. Oceanic Bank (OCBK.LG: Quote, Profile, Research)
Oceanic Bank, International Trust Bank.
16. Skye Bank Plc
Prudent Bank, EIB Intl. Bank (EKOI.LG: Quote, Profile, Research).
17. Sterling Bank
Magnum Bank, NBM Bank, Trust Bank.
18. UBA Plc (UBA.LG: Quote, Profile, Research)
United Bank for Africa, Standard Trust, Continental Bank.
19. Union Bank (UBNP.LG: Quote, Profile, Research)
Union Bank, Broad Bank, Gulf Bank (GBNP.LG: Quote, Profile, Research), Universal Trust
Bank (UTBN.LG: Quote, Profile, Research), Union Merchant Bank, Hallmark Bank
(HALL.LG: Quote, Profile, Research), Midas Bank, Assurance Bank.
20. Unity Bank
Intercity Bank, First Interstate Bank, Centrepoint Bank,
Pacific bank, Tropical Commercial Bank.
21. Wema Bank Group (WEMA.LG: Quote, Profile, Research)
Wema Bank, National Bank, Leadbank, Fortune Bank.
Banks that have indicated their intention to remain
independent and meet the new capital requirment alone:
1. Guaranty Trust Bank (GTB.LG: Quote, Profile, Research)
2. Nigeria Intl. Bank (Unit of Citigroup (C.N: Quote, Profile, Research))
3. Standard Chartered Bank (STAN.L: Quote, Profile, Research)
4. Zenith Bank (SETH.LG: Quote, Profile, Research)
Banks that are yet to meet the new capital requirement:
1. African Express Bank
2. African Intl. Bank
3. Allstates Trust Bank
4. Bond Bank
5. City Express Bank
6. Eagle Bank
7. Fountain Trust Bank
8. Habib Nigeria Bank
9. IMB Intl. Bank
10. Liberty Bank Plc
11. Mannybank Plc
12. MBC Intl. Bank
13. Metropolitan Bank
14. Nigerian-American Bank
15. Platinum Bank
16. Reliance Bank
17. Societe Bancaire
18. Societe Generale Bank
19. Stanbic Bank (unit of Standard Bank (SBKJ.J: Quote, Profile, Research))
20. Triumph Bank
New bank groups emerge from Nigeria consolidation
Fri Oct 14, 2005 8:07 AM ET
By Oludare Mayowa
LAGOS, Oct 14 (Reuters) - Twenty-one new banking groups have
emerged from a forced consolidation process in Nigeria, 11 weeks
before a deadline for new capital requirements takes effect,
banking sources and officials said on Friday.
Another four independent banks will meet the minimum capital
requirements and are expected to go it alone, while 20 banks do
not currently meet the guidelines and will have to cease banking
on Jan. 1 unless they find new capital before then.
In an effort to strengthen the weak and overcrowded sector,
the central bank announced in July 2004 a 12-fold increase in
minimum capital requirements to 25 billion naira ($190 million),
to be achieved by Dec. 31 2005.
The latest list of 21 new groups consists of 65 formerly
independent banks which have joined or intend to join forces to
meet the requirements. The list changes constantly as some
previously announced mergers have failed and others have been
established.
Three of the new groups -- Access Bank, Intercontinental
bank and UBA -- have formally concluded their mergers, while a
fourth, First Inland Bank, is on the verge of holding the
shareholder meetings required by law to ratify the merger.
Other new groups are required to formalise their mergers by
the end of October, although the deadline for the new capital
base is still Dec. 31.
The 20 banks that do not currently meet the new rules will
have to cease banking from Jan. 1 unless they find merger
partners or capital before then. Some of these banks are in
talks and may yet meet the deadline, bankers said.
Banks have raised 241 billion naira ($1.8 billion) from the
local bourse through equity issues since July 2004, and 6.7
billion naira ($50 million) was injected from abroad through the
capital market.
The central bank last month instructed banks that no more
equity issues will be allowed. The bank also directed that funds
raised through the offers should be lodged in a central bank
escrow account to safeguard the interest of investors.
Directors of at least three banks are under investigation
for fraud and have had their passports seized by law enforcement
officials.
The central bank last week assumed control of Allstates
Trust Bank after it stopped paying depositors' money, and the
bank is expected to be recapitalised within the next few days.
Nigeria had 89 banks at the beginning of the consolidation
process in July last year, including two small commercial
institutions that were already bankrupt.
Following is a list of the new groupings:
1. Access Bank (ACCE.LG: Quote, Profile, Research)
Access Bank, Marina Intl. Bank, CapitalBank.
2. Afribank (AFRB.LG: Quote, Profile, Research)
Afribank, Trade Bank (TRDB.LG: Quote, Profile, Research), NNB Intl., Afribank Intl.
(Merchant Bankers).
3. Bank One Plc
Co-operative Bank (COOP.LG: Quote, Profile, Research), Omegabank (OWBK.LG: Quote, Profile, Research), Trans
Intl. Bank (TIBP.LG: Quote, Profile, Research)
4. Citizens Bank
Citizens Bank, ACB Int Bank (ACBN.LG: Quote, Profile, Research), Guardian Express Bank
5. Diamond Bank
Diamond Bank (DAIM.LG: Quote, Profile, Research), Lion Bank (LBNP.LG: Quote, Profile, Research).
6. Equitorial Bank
Equitorial Bank, Devcom Bank.
7. FCMB (FCMB.LG: Quote, Profile, Research)
FCMB, Co-operative Devt. Bank (CODE.LG: Quote, Profile, Research)
8. First Bank (FBNP.LG: Quote, Profile, Research)
First Bank, FBN (Merchant Bankers), Eco Transnational
Incorporated (parent company of Ecobank Nigeria)
9. First Inland Bank
First Atlantic Bank (FABN.LG: Quote, Profile, Research), Inland Bank (INLB.LG: Quote, Profile, Research)
10. First North Bank
Bank of the North, NUB Intl. Bank, First African Trust Bank.
11. Fidelity Bank (FUMB.LG: Quote, Profile, Research)
Fidelity Bank, FSB Intl. Bank (FSBI.LG: Quote, Profile, Research)
12. IBTC (IBTC.LG: Quote, Profile, Research)
IBTC, Chartered Bank, Regent Bank
13. Intercontinental Bank (INBK.LG: Quote, Profile, Research)
Intercontinental Bank, Equity Bank, Global Bank,
Gatewaybank.
14. NAL Bank (NASLB.LG: Quote, Profile, Research)
NAL Bank, Indo-Nigeria Bank.
15. Oceanic Bank (OCBK.LG: Quote, Profile, Research)
Oceanic Bank, International Trust Bank.
16. Skye Bank Plc
Prudent Bank, EIB Intl. Bank (EKOI.LG: Quote, Profile, Research).
17. Sterling Bank
Magnum Bank, NBM Bank, Trust Bank.
18. UBA Plc (UBA.LG: Quote, Profile, Research)
United Bank for Africa, Standard Trust, Continental Bank.
19. Union Bank (UBNP.LG: Quote, Profile, Research)
Union Bank, Broad Bank, Gulf Bank (GBNP.LG: Quote, Profile, Research), Universal Trust
Bank (UTBN.LG: Quote, Profile, Research), Union Merchant Bank, Hallmark Bank
(HALL.LG: Quote, Profile, Research), Midas Bank, Assurance Bank.
20. Unity Bank
Intercity Bank, First Interstate Bank, Centrepoint Bank,
Pacific bank, Tropical Commercial Bank.
21. Wema Bank Group (WEMA.LG: Quote, Profile, Research)
Wema Bank, National Bank, Leadbank, Fortune Bank.
Banks that have indicated their intention to remain
independent and meet the new capital requirment alone:
1. Guaranty Trust Bank (GTB.LG: Quote, Profile, Research)
2. Nigeria Intl. Bank (Unit of Citigroup (C.N: Quote, Profile, Research))
3. Standard Chartered Bank (STAN.L: Quote, Profile, Research)
4. Zenith Bank (SETH.LG: Quote, Profile, Research)
Banks that are yet to meet the new capital requirement:
1. African Express Bank
2. African Intl. Bank
3. Allstates Trust Bank
4. Bond Bank
5. City Express Bank
6. Eagle Bank
7. Fountain Trust Bank
8. Habib Nigeria Bank
9. IMB Intl. Bank
10. Liberty Bank Plc
11. Mannybank Plc
12. MBC Intl. Bank
13. Metropolitan Bank
14. Nigerian-American Bank
15. Platinum Bank
16. Reliance Bank
17. Societe Bancaire
18. Societe Generale Bank
19. Stanbic Bank (unit of Standard Bank (SBKJ.J: Quote, Profile, Research))
20. Triumph Bank