2 Banks Terminally Sick – NDIC

Two undisclosed banks have been said to be terminally ill, as they had negative capital adequacy ratio in 2011.
This is just as deposit money banks in the country lost N4.071 billion in 2011 to frauds and forgeries.
These were contained in the Nigerian Deposit Insurance Corporation (NDIC) annual report released on Wednesday, in Lagos.
However, the amount lost by banks to fraud decreased by 65 per cent, when compared with N11.68 billion recorded in 2010.
Breakdown of the report showed that the year under review witnessed a rise in fraud cases, from 1,532 cases worth N21.29 billion recorded in 2010 to a total of 2,352 fraud cases involving the sum of N28.40 billion in 2011.
The amount of frauds and forgeries also increased by 33.40 per cent, while the number of attempt for frauds increased by 53.5 per cent.
The report, however, attributed the increase in the number of attempted or successful frauds and forgeries cases reported in 2011 to rising fraud cases through internet banking and suppression of customer deposit. Meanwhile, the capital adequacy ratio of the banks improved significantly from 4.06 per cent in 2010 to 17.71 in December 2011.