Why Banks Need AMC

Joseph Ekeng-

The Minister of state for finance, Remi Babalola, has advocated for speedy implementation of the proposed Asset Management Company (AMC) saying it will aid facility recovery in the banking sector.
Babalola, while assuring that the government was making efforts to stabilize the banking sector, said that the AMC offers the better solution to the crisis in the banking sector and the quicker way to get the banks into lending credit.
“It is clear to me that the economy can not grow, and employment can not be created without credit to the private sector,” he said, pointing out that the AMC would not only “assist in restructuring and improving the balance sheets of the banks, but would also enhance the flow of credit to the real sector to boost growth and development of the nation’s economy.”
The minister also said that the federal government was assessing other options that will induce growth in the economy. It could be recalled that government had to intervene to save some banks from collapse. Some of the affected banks are Oceanic Bank, Intercontinental Bank, Union Bank, Afribank, Finbank, Equitorial Trust Bank, Bank PHB and Springbank.