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Some
of the rescued banks are silent on how far they have gone with their
recapitalisation effort and the fate of their subsidiaries, especially
those outside the country.

Oceanic
Bank, one of the banks closed down its outlet in The Gambia last week,
citing inability to meet the capital requirements of 150 million dalasi
(about US$ 5.6 million) demanded by that country’s authorities. Thomas
Quayson, the bank’s spokesperson in the country, said that the bank
headquarters in Nigeria could no longer subsidise its foreign branches,
and as a result are returning deposited money to customers.

At
the bank headquarters in Nigeria, staff refused to talk about the
issue. “All we can say now is that we have opted to go from
international banking to national” a source said. “Details of what will
happen to our subsidiaries cannot be given now until the whole process
is over, right now, it is still a work in progress” he added.

Following
the sale of some non-performing loan portfolio to the Asset Management
Corporation of Nigeria (AMCON) and receipt of bonds worth over N200
billion in exchange, John Aboh, the bank chief executive, said it is
now operating with an enhanced liquidity ratio that is above the 25 per
cent level required by the Central Bank of Nigeria (CBN).

Like
Oceanic Bank, officials at Intercontinental Bank too were reluctant to
talk about the progress of their subsidiaries. “When we conclude our
own recapitalisation locally, we would now issue a press statement
stating emphatically on what was bought or acquired and by whom. Until
that is done, we really don’t want to talk on this” a source who did
not want to be quoted officially said.

Intercontinental
Bank’s chief, Mahmoud Lai Alabi has however said that regardless of the
outcome of the on-going recapitalization process, the bank will remain
an international bank. The bank has branches in the United Kingdom and
Ghana presently.

Tunde
Olofintila, Wema Bank’s spokesperson said the bank has no worries as it
has no subsidiary issues to address so it is focussing on restructuring
for regional banking.

Unity
Bank also disclosed on its website that its banking operations are
limited to five zones of Lagos and South West, North West, Central,
North East, South.

Despite
receiving over N200 billion in consideration bonds from AMCON last
year, Nigeria’s sixth largest lender by total assets, Oceanic Bank, is
not out of the woods just yet.

Adesoji
Solanke, banking analyst, Renaissance Group, an investment bank, says,
“While we understand that Oceanic Bank is still carrying out its
valuations and holding discussions, we believe significant progress is
being made. This is on the back of the bank’s decision to dispose of
its Gambia operations which we believe is a decision that would have to
be taken in cognizance of the strategic direction of the acquirer”.