Liquidity Ratio of 3 Commercial Banks on Alert by CBN

diamond bank, Bank News, Bank Gist business-news

The Central Bank of Nigeria (CBN) had this week released its economic report for the half year ended June 2018.

In a section, the apex bank had stated three banks had liquidity issues but did not specify them.

A report by Proshare, however, suggests the banks may be tier two lenders Diamond Bank, Keystone Bank and Heritage Bank

Proshare in a separate tweet, also restated media reports that Diamond Bank Plc may have a new core investor.

The bank had consistently debunked such reports.

What liquidity ratio means 

Liquidity ratio is the ratio of a bank’s liquid assets to its liabilities. In other words, a banks cash balance plus assets that it can easily convert to cash to the total liabilities owed by the bank, which is typically your deposits.

AMCON MD, Ahmed Kuru in June this year, stated that the bank was sold for N41 billion.

The banks may have begun moves to shore up their liquidity, since the report was as at the year ended June 2018. In the unlikely possibility, they are unable to do so, the apex bank may be forced to take over them and inject needed funds.

While Proshare may not have gone into specifics, it could be referring to shares held by private equity firm Actis and the CDC that were bought by Kunoch (the holding company for the Dozies) in 2014.

Financial details of the transaction were not disclosed but are estimated to be around $120 million. Funds were provided by two-tier one banks. Collateral for the loan reportedly includes Diamond Bank and MTN shares.

  • gbam!! ()
  • Interesting ()
  • funny ()
  • cool ()
  • nawaoooo ()
SEE ALSO  Fidelity Bank to Become a Tier-1 Bank
Share this
Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on whatsapp
Source :

About the Author

Schwiz Josh

Schwiz Josh

Basically, I'm a programmer and Entrepreneur, Web based. Schooled in UNIZIK. I love classical music.

Leave a Reply

Notify of

Subscribe to Get the Best Articles Weekly