Confusion over release of audit report of 14 banks
From ISAAC ANUMIHE, abuja
Wednesday, September 9, 2009

The release of the audited report of the remaining 14 banks is now an issue of controversy within the rank of top management of  Central Bank of Nigeria (CBN. While some    move for a similar treatment with the first five bank chief executives, others kick against it.   

But Daily Sun’s source revealed that the CBN Governor, Mallam Sanusi Lamido Sanusi,  is now cautious of his actions following the uproar that greeted his sacking of the five bank chief executives and the injection of N420 billion into the ailing banks.

According to the source, although the remaining 14 banks are not terminally ill like the first five, large volumes of non-performing loans were discovered.
The 14 banks whose audited accounts are now awaiting publication include,   Skye Bank, PHB, Ecobank, Zenith Bank, First City Merchant Bank (FCMB), Fidelity Bank, IBTC, Unity Bank, Citi Bank, Standard Chartered Bank, Spring Bank, Access Bank, Wema Bank and Equatorial Trust Bank.

Sanusi had,  at  the last 210 Monetary Policy Committee (MPC) meeting  two weeks ago announced that the auditing of 11 banks had been concluded. But last week, Daily Sun’s  source revealed  that the auditing of the remaining  two banks had been done, wondering why the delay in publishing the names of the banks with large volumes of non-performing loans.
The hurried sacking of the chief executives of five banks and the injection of N420 billion in the economy  attracted some bashings from stakeholders in the industry who suggested that the powers of the apex bank be whittled down.

But CBN had argued that any move to amend the CBN Act would  prevent the CBN from playing its role as lender of last resort.
Besides, he said not only would it be counter-productive, it will also be  unprecedented in the history of central banking in the world as this would simply make it difficult for the Central Bank of Nigeria to perform its vital role of ensuring the safety and soundness of the financial system.  

The CBN Act empowers the CBN to manage money supply in the economy through different mechanisms.  The CBN, as banker to other banks, has been increasing money supply by lending money to the banks through the Expanded Discount Window (EDW) and the injection of the N420b into the five banks is similar to that function. 
The money is not from the government treasury and the CBN does not require any appropriation by the National Assembly in order to perform this function which in any event, is not often foreseeable,” CBN insisted.