Nigeria Central Bank slaps down sanctions against Standard Bank arm

“We are seriously concerned that such a drastic…decision could be taken…without any form of consultation of the [Central Bank of Nigeria]”

NIGERIA’S central bank rejected a request by the country’s Financial Reporting Council to take disciplinary action against Standard Bank Group Ltd.’s local unit after the FRC said the lender had made material misstatements in its financial accounts and recommended a fine.

The FRC didn’t follow due process and the central bank is “unable to accede to your request to take disciplinary action against” Stanbic IBTC Holdings Plc, Governor Godwin Emefiele said in letter dated Nov. 2 obtained by Bloomberg and confirmed by central bank spokesman Ibrahim Mu’azu. “We are seriously concerned that such a drastic regulatory decision could be taken on an entity under the regulation and supervision of the Central Bank of Nigeria without any form of consultation of the bank.”

Standard Bank said in a statement on Wednesday it received a copy of Emefiele’s letter to the FRC and welcomed the central bank’s intervention.

-Bloomberg

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