Mashihud Fashola, a senior lecturer in the Department of Economics at the University of Lagos, made the remark during an interview with newsmen on Monday in Lagos.
He said that the removal of the five former bank chief executives would not cause any problem in the affected banks, but would rather boost the confidence of the investors and depositors.
Fashola said that the action would also make other bank chiefs to sit up and be more dedicated in activities relating to corporate governance and risk management.
“I don’t think the removal of those managing directors will have any negative effect on the banks because it will not cause panic. Instead, it will make Nigerians to develop more confidence in the banking industry.
“Secondly, this shows that the CBN is sensitive to the plight of the people. There is corruption everywhere in Nigeria and the only way to tame it is to handle it ruthlessly,†he said.
Eddie Osarenkhoe, president, Finance Houses Association of Nigeria (FHAN), said that the new developments in the banking industry would encourage other banks to carry out their jobs diligently.
Osarenkhoe said that the N400 billion injected into the affected banks would cushion and enable them to be able to perform as they ought to.
He maintained that emerging challenges in the industry would enable the banks to expand their loan portfolios beyond corporate organisations to well-meaning individuals.
However, Boniface Okezie, national president, Progressive Shareholders Association of Nigeria (PSAN), condemned the CBN governor’s action, saying that it had political undertones.
According to him, the governor of the CBN should have first served the affected banks with a warning notice to afford them the opportunity to correct their mistakes.
“The CBN could have also issued queries to the affected banks for them to be able to retrace their steps and correct their mistakes.
“The step the apex bank has taken by sacking them is too hasty. This shows that the action had some political undertones,†Okezie said.The total non performing loans of the five banks constituted 40.81 percent of the nation’s banking non-performing loans profile.
The five banks whose chiefs were removed after being classified as weak in terms of risk management and corporate governance are the Oceanic Bank Plc, Finbank Plc, Afribank Plc, Intercontinental Bank Plc and Union Bank Plc. (NAN)