First Bank debacle: Was the CBN's action correct?
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 tha...
Source: nairametrics.com