Banks responsible for downtime in financial market-Ukeje

Banks across the country have been accused on being responsible for the gridlocks in settlement of trades and down time experienced in market operations.

This was disclosed recently in Lagos during an FMDQ event by the Special Adviser to the Central Bank of Nigeria (CBN) Governor on Financial Markets, Mr Emmanuel Ukeje, as he accused some banks for ensuring that they have a piece of every auction in the market , even without back up capital.

He said that the apex bank’s market technologies has been updated and has remained upbeat and efficient to locate when and where the default is coming from, adding that once there is default in meeting up with allocations, it disrupts trades and creates.

He said that against general believe in many quarters that the CBN was responsible for market downtime, the banks are solely responsible as the apex bank may soon begin another regime of fines on market defaulting banks.

He had said “banks are responsible for gridlock because all of them without making adequate provisions, want to buy CBN treasury bills and when settlement time comes , they will be found wanting< this is what causes gridlock in the market” Ukeje said.