Central Bank of Nigeria (CBN), the financial regulator has on Monday reiterated the resilience, safety and soundness of Nigerian Deposit Money Banks (DMBs) and other financial institutions under its supervision.
The apex bank made the clarification following unconfirmed reports in the social media that depositors fund in Zenith Bank may be trapped as the bank is no more solvent.
Zenith bank is facing the worst liquidity challenge since March of 2021 due to gross mismanagement of her fund. This has led to panic withdrawals by depositors in Lagos, Kano and other parts of the country.
This was declared on Monday 26th of July by the Central Bank of Nigeria after Zenith Bank PLC failed a liquidity test in a distressed forensic audit by the Apex bank on credit quality.
The factors responsible for this deplorable situation are capital inadequacy, non performing loans and lack of transparency in the management of depositors money.
Dr. Adora Umeoji who is the Deputy Managing Director of Zenith bank has put Zenith bank under serious credit risk by the high numbers of non performing loans she accessed from the bank using fronts.Some of these borrowed fund she is using to finance her brother’s governorship ambition in Anambra State to the detriment of millions of depositors.
Her actions is putting millions of Nigerians who deposited money and investments at risk. This situation may force Central Bank of Nigeria to take over Zenith Bank. This has caused panic withdrawals by depositors.
The coming weeks will be critical and crucial to the survival of the bank.
Fund and Assets Management House,