Nigerian banks face forced liquidation after failing to prove they have adequate capital to operate under new government regulations." /> Nigerian banks face liquidation | Balanced News Blog

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Nigerian banks face liquidation

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by admin | January 3, 2006 at 3:25 pm UTC

A dozen Nigerian banks face forced liquidation after failing to prove they have adequate capital to operate under new government regulations.

Banks must now hold minimum financial reserves of 25bn naira ($190m; £110m), compared with 2bn naira previously.

The reforms are intended to bolster the financial sector which saw regular bank failures and corruption in the 1990s.

Regulators said the banking sector’s total capital reserves have increased from $3bn (£1.7bn) to $5bn.

Source: BBC.

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