ABUJA – Mr. Aigboje Aig-Imoukhuede, the Managing Director of Access Bank Plc, said in Abuja that the establishment of the Asset Management Company of Nigeria (AMCON) would help to solve problems in the banking sector.
Aig-Imoukhuede told newsmen that other countries with similar problems used such a company to solve their problems.
“The banking industry is totally clear that the most practical way of dealing once and for all with this crisis is through the asset management company.
“It is also instructive to note that it is a vehicle that other countries that have had similar crisis used to address their own challenge,’’ he said.
According to him, the company is going to intervene in two ways which includes acquiring the non performing loans from banks and receiving their underline collaterals
Aig–Imoukhuede, who is also a member of the Bankers Committee meeting, added that the second intervention of the company would be to fill the remaining capacity adequacy challenges.
He noted that lack of confidence and effect of the crisis in the industry had a very high risk to the banking system.
“In consideration of this, we believe that AMCON will provide liquidity to the affected banks as well as the non affected banks
It will provide capital to the affected banks as well as interest for the non affected banks and will allow for the necessary merger and acquisition transfer that is required to address the weakness in the affected banks.
“It will definitely increase confidence in the banking industry balance sheet and it will give opportunity to borrowers who can conduct good business but who are over weighed by the existing loan to refinance and restructure business loan in a constructive manner,’’ he said.
He commended the Central Bank in ensuring that AMCON was established to improve the industry.
“It is important to note why Nigeria needs Asset Management Company. We know that there is a large number of deposit within the affected banks,’’ he added
Reports say that the Bankers Committee Meeting last week in Abuja said that all the 24 banks would contribute to a sinking fund to fund any deficit that the company would assume.
A sinking fund is established by a government agency or business concern for the purpose of reducing debt by repaying or purchasing outstanding loans
The Central Bank and Nigeria Deposit Insurance Corporation would also contribute to the fund.
|
