Intrigues as control for First Bank heightens guardian.ng - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from guardian.ng Daily Mail and Mail on Sunday newspapers.
Insist it is yet to receive notification for acquisition FBN Holdings Plc Friday denied claims by online media that the Nigerian business mogul, Femi Otedola has acquired majority stake in the bank. In a statement signed by the company secretary, Seye Kosoko obtained from Nigerian Exchange Limited(NGX), the bank is yet to receive any notification […]
Ibukun Awosika Back in the News After First Bank Exit thisdaylive.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thisdaylive.com Daily Mail and Mail on Sunday newspapers.
Moody’s made this statement in a report titled ‘Removal of Non-Executive Board Members Highlights Governance Shortcomings.’
In a quote, Moody’s said:
“Moody’s Investors Service, (“Moody’s”) has today placed all long-term ratings and assessments of First Bank of Nigeria Limited (First Bank) on review for downgrade. The review will focus primarily on an assessment of evolving governance considerations at First Bank, specifically corporate governance developments. The rating action follows the dissolution of First Bank’s board by the Central Bank of Nigeria (CBN), the bank’s primary regulator, on 29 April 2021. As a result of this action by the CBN, all the non-executive directors were removed while the executive management remained in place.”
FBN Holdings Plc (FBN) has about 1,201,447 individual shareholders. What does the average shareholder make of the sack of the entire board of FBN Ltd and FBN Holdings Plc? What does the Central Bank of Nigeria (CBN) communicate with these actions?
The issue at stake here is
Credit Risk. FBN identified credit risk as the “single largest risk for the group.” Credit risk is essentially the possibility that a customer of the bank will borrow cash from the bank, promising to repay at an agreed interest rate, and then default on that promise.
The Genesis
The CBN Governor’s statement says that in 2016, the CBN conducted an audit of FBN and found out the institution was in “grave financial condition” with inadequate capital and loans given to the internal customer who had not paid back those loans.