BY Mayowa Tijani
Stanbic IBTC saw its shares soar following a letter from the Central Bank of Nigeria (CBN) to the Financial Reporting Council of Nigeria backing the bank in their face-off.
The bank shares rose by 4.97 percent on Wednesday after the CBN refused to accede to the FRC sanctions against the bank.
The FRC had initially called for the suspension of four directors of the bank, including Atedo Peterside and Sola David-Borha, for what it called financial misstatements.
It called on the Economic and Financial Crimes Commission (EFCC) and the CBN to probe the observations it raised concerning IBTC’s banking application and account statements.
Immediately after the release by FRC, the bank’s shares began to dive, going as low as 17.78 percent in the week the sanction was imposed.
Following the consideration of the CBN, the governor, Godwin Emefiele wrote the FRC saying it cannot take disciplinary actions against the bank.
“In light of the foregoing facts, which clearly show that FRCN did not follow due process, the Bank regrets to inform you that it is unable to accede to your request to take disciplinary action against SIBTCH,” Emefiele said.
“Indeed the CBN does not see any reason to advise/compel SIBTCH to obey the sanctions meted to it by the FRCN.
“The CBN would however continue to take all necessary steps to protect the interest of Depositors and to ensure the safety and soundness of the financial system.”
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