By Udeme Ekwere with Agency report

The Securities and Exchange Commission has said that it will clear the Transaction Implementation Agreements submitted by the five rescued banks before the September 30 deadline.

The Director-General, SEC, Ms. Arunma Oteh, who disclosed this on Monday, noted that resources had been assigned to review the applications by the banks before the deadline.

Speaking in an interview with the News Agency of Nigeria, she said, “SEC has assigned more resources to the review of the applications to ensure approvals are completed ahead of the September 30 deadline.

“The commission’s team is working all hours to complete the due diligence required for the submissions made by the banks. We always ensure that our due diligence on any transaction is efficient and comprehensive.”

Oteh also noted that the commission recognised the importance of the TIAs to the resolution of the banking sector challenges, adding that SEC would ensure that appropriate things were done on time.

She explained that there were no delays in the processing of applications, adding that “SEC, as a responsible organisation, takes its mandate of investors’ protection with utmost seriousness.”

The Managing Director, Asset Management Corporation of Nigeria, Mr. Mustapha Chike-Obi, said last week that the shareholders of the rescued banks were expected to meet on September 30, this year to endorse the recapitalisation deals signed by investors.

The five banks, Intercontinental Bank Plc, Oceanic Bank International Plc, Finbank Plc, Union Bank of Nigeria Plc and Equitorial Trust Bank Limited, had signed agreements with investors, but shareholders have yet to accept the deals.

Chike-Obi had expressed the hope that the shareholders, who had seemed not to be agreeable to the Central Bank of Nigeria’s attempt to get investors for the banks, would accept the deals.

He had, however, noted that if the shareholders failed to accept the deals, the regulators would explore all possible avenue to ensure that the depositors, employees and the financial system as a whole was duly protected.

He said, “If they go to Extraordinary General Meeting and decide to reject the deal, then it will be clear those banks will not be able to recapitalise themselves and regulators will need to step in. But I do not expect them to do that.

“If it is clear that a bank cannot recapitalise on its own, then all options will have to be explored by regulators. We will not allow depositors, employees or the financial system to suffer.”

The rescuers of the five banks are Access Bank Plc, which signed TIA with Intercontinental Bank Plc; Ecobank Transnational Incorporated Plc, which signed an agreement with Oceanic Bank; and FCMB Plc, which signed an agreement with Finbank Plc. Others are African Alliance Capital, which signed with Union Bank and Sterling Bank Plc, which signed with ETB.

Source: Punch