No Bank Was Referenced By CBN as NOT being Compliant with 30% Minimum Regulatory Liquidity Ratio

Proshare

Saturday, November 17, 2018     04.30PM / By Management


Our attention has been drawn to a @proshare tweet on Nov 02, 2018 referenced by a financial news publication on Nov 03, 2018 titled: Are these the banks with poor liquidity ratios?

 

The tweet stated viz:

“UPDATE: @heritagebankltd @keystonebankng & @DiamondBankNGarethree (3) Commercial Banks that attention would fall short of the Minimum Regulatory Liquidity Ratio of 30% as assessed by @cenbank. - @TheAnalystNg Investigations”

 

We wish to inform the public that this tweet (without any news story related thereto) was deleted once we became aware of it via a digital media staff who represents that he thought he was signed into his personal Twitter account to send an internal exchange off the RT of the original regulatory news post, but ended up mistakenly tweeting from the company’s corporate Twitter account. 

 

We take responsibility as a company. This had never occurred in over a decade of operations and we accept that much more is expected of us.

 

Our practice ethos requires that upon receipt of a formal complaint, a full review should be conducted and the outcome communicated as part of the organizational learning and internal discipline required from the franchise we hold.

 

Highlights from the report revealed:

  • That beyond deleting the erroneous tweet; we ought to have drawn attention to the tweet deleted and corrected the erroneous message carried by issuing a prompt post or/and news release. This ought to be followed up with a call to all entities involved.
  • That any other firm(s) who may have used same was a consequence of our not immediately following up on the laid down post-discovery steps which will have to be improved upon.
  • That discussing openly the error and the issues should help bring attention to the underlying message which we set out to advance – i.e.  advocate for a higher standard of governance, transparency, disclosure and accountability in central bank stress testing results and its dissemination; including the burden of responsibility on those involved in sharing same like Proshare and other financial and market information platforms.
  • That Proshare must act on its ethical responsibility to correctly represent the information released from regulators without any insinuation or suggestion not premised on data and evidence especially when the referenced report did not mention any bank names in its public release.
  • That the benefit of hindsight should lead to a better appreciation of best digital media practices especially in the financial market space, where leadership requires a higher application of governance ethos and higher levels of internal process management.  


In furtherance of this, Proshare has since done the following:

  • Conducted an internal review of the episode to identify process, people and practice issues involved and taken remedial actions;
  • Tweeted a  Nov 15, 2018 post to admit the error and to draw attention to it;
  • Written to the platform referenced above to inform them of the error in the tweet and their professional obligation to govern accordingly which they have acceded to; and
  • Initiated a process to identify and remove all points in the platform that such might have been referenced (if any) and to issue this ‘full and frank’ statement for the benefit of the bank(s), market and the general public.

 

In the main, this episode is unfortunate as it does not reflect who we are, what we stand for and how we conduct our service; yet it has been beneficial in reminding us of our raison d'être.

 

We therefore accept full responsibility and are sorry for any inconvenience caused by the inadvertent public tweet and the governance deployed during its subsequent use by others.

 

This is not a revelation but reflects more on who we are – an entity ever willing to subject ourselves to the highest level of conduct scrutiny in practice, process and people; as we demand of other entities.

 

As a premier information service platform, we subscribe to and adopt best practice standards which compel the willingness to admit and correct errors, not only as a reaction but as a core aspect of our service ethos since inception; and we have followed through with this for the past decade. This approach has helped us to eliminate errors and improve pre-publishing controls till now, when we are transiting to a new era.

 

This feels different because it was not organically initiated and an exception which we are responding; one we believe offers teachable lessons for the organisational responsibility to further make our work more accurate, credible and reliable; and help us build internal capacity for the platform and its digital media engagements.

 

Ultimately, this episode is unfortunately not about us but about the reputation, image and business of the esteemed institutions that our inadvertent mistake require us to bring attention to.

 

We therefore do not take this episode lightly; and do not represent the comments above as excuses but context for the mistake and the information to the public about it.

 

We thank the entities involved and the readers for the opportunity given us to retract this mistake even as we hope to build on this, duly reminded that to remain a force for good in the market; a lot more is expected of us.

 

The vigilance of /from stakeholders who call us out when necessary remains a key pillar of this service proposition and we appreciate the accountability expected from us.

 

We will continually strive to justify our place in the market place. Thank you for your understanding.

 

Once again, we regret any inconvenience this might have caused. 

 

Proshare Nigeria Pvt. Ltd.

 

Related News

1.       Three (3) Commercial Banks Fall Short of The Minimum Regulatory Liquidity Ratio of 30% – CBN

2.      A New Chapter In Stress Testing – The Fed

3.      EBA Stress Test - Banks Are More Resilient To Financial Shocks, Barclays and Lloyds Are Laggards  Nov 04, 2018

4.      Eurozone Bond Market to See Major Shift as ECB QE Ends Oct 29, 2018

5.      FRC Publishes Thematic Review Findings Of IFRS9 and IFRS15 Company Disclosures Nov 05, 2018

6.      Requesting The Removal Of A News Story From Proshare – Process

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