Some shareholders have said that the huge levies paid by commercial banks to the Asset Management Corporation of Nigeria (AMCON) had stifled banks’ ability to lend .
They said that the shareholders’ funds were being eroded annually by the sustained operation of the Banking Sector Resolution Cost Fund as observed in the 2014 financial year.
The News Agency of Nigeria (NAN) reports that the Banking Sector Resolution Cost is a funding-pool agreed upon by commercial banks to mitigate the challenges that the nation’s banking sector may face as occasioned by the 2008/2009 global economic recession.
Investigations by the NAN showed that seven commercial banks contributed N56.42 billion to the AMCON in 2014. Some of the shareholders told the NAN in separate interviews in Lagos that banks’ contributions to the AMCON were making their stocks unattractive to investors due to dwindling and unimpressive dividends.
Source : Leadership
