Proshare Logo
   Market Date: 23-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

CBN Explains Termination of Afribank, Vine Capital Deal

Category: Regulators

  Read (1662)
CBN Explains Termination of Afribank, Vine Capital Deal



July 19, 2011 by Obinna Chima
The Central Bank of Nigeria (CBN) Monday shed more light on the failed attempt by Vine Capital Partners (VCP) to acquire one of the rescued banks- Afribank Plc, saying that the latter did not meet the requirements of the apex bank.
Deputy Governor, Financial System Stability, CBN, Dr. Chiedu K. Moghalu, dropped this during a chat with newsmen at the sideline of a media briefing in Lagos.
The board of directors of Afribank Plc had signed a Memorandum of Understanding (MoU) with a Vine Capital Partners Limited early this year. Vine Capital Partners is an emerging markets private equity firm with an interest in banking and financial services.
But Moghalu disclosed that the Committee of Governors shut down the deal based on evidences that were gathered by the banking watchdog.
“It is the board of directors that brings the MoU directly to the CBN for approval and when the board of Afribank brought the MoU to CBN, based on the evidence before us, the MoU did not meet our requirement. The Committee of Governors must approve.”
He stressed that Afribank is free to enter into negotiation with any other party.
“There are a lot of things involved in approving an MoU. A lot of investors bring money, but money is not all we are looking at. We also look at the ability to bring corporate governance, risk management. We don’t want what happened to those banks in the past to happen again. We look at the money; we look at the recommendations of the financial advisers.
“The financial advisers appointed by the CBN did not approve the deal; neither did their own independent adviser. In this particular case, there was an attempt by an investor to acquire two banks even when they have not established a track record of managing a commercial bank previously. Note, that we did not even allow any other bank to acquire more than one of the rescued banks, let alone a private equity,” Moghalu explained.
He reiterated that the banking watchdog has a primary responsibility of ensuring financial system stability.
The CBN Deputy Governor added: “The depositors are the number one priority of the CBN, followed by the depositors and then the shareholders. Banks hold depositors funds in trust. It is a sacred trust that banks have”.
Source: Thisday

Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Regulators

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014