AMCON ACT EXTENDS TENURE BEYOND 10 YEARS
The Asset Management Corporation of Nigeria (AMCON) set up by the CBN and the Ministry of Finance as a resolution mechanism for cleaning up banks’ Non-Performing Loans (NPLs) will not have its existence terminated by 2020 as the act establishing it initially envisaged. This was disclosed by Kemi Fatogbe, director of Risk Management CBN, in a presentation made at Risk Managers Association of Nigeria (RIMAN) conference held in Lagos yesterday. He said that “the ten-year lifespan for AMCON is out. We are still working on an operating assumption for AMCON of between 10 – 15 years, but the corporation will not cease operations after that; it will remain to help ensure the financial system stability”.
Fatogbe said AMCON has helped to reduce the banking industry NPL ratios, which were over 30 percent in 2010, to “an industry average of fewer than 5 percent last month)
Culled from BUSINESS DAY: Friday, July 27, 2012
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