Court: CBN has power to revoke Bank PHB’s licence

[DT]

A Federal High Court in Lagos, yesterday dismissed Bank PHB's suit against the Central Bank of Nigeria, Keystone Bank and the Federal Government challenging the revocation of its banking licence, and takeover of its assets by the Nigerian Deposit Insurance Corporation (NDIC) and the Asset Management Corporation of Nigeria.

In his ruling, the presiding judge, Justice Charles Achibong, posited that the apex bank acted within its powers under the CBN Act. He said Section 53 of the Banks and Other Financial Institutions Act, 2004 empowered the CBN to revoke Bank PHB's operating licence.

He also aligned with the submissions of the defendants through chief Anthony Idigbe SAN; and observed that CBN licence is a creation of an Act of National Assembly, which empowers the CBN to intervene where it finds that depositors' funds were in danger.

According to him, the documentary evidence available before him showed that Bank PHB had non performance loan of N475 billion, with its liquidity ratio below 25%.



Daily Trust