IMF welcomes Ecobank’s governance strides

Officials of Ecobank Transnational Incorporated (ETI) have stated that the concerns raised by the International Monetary Fund (IMF) on governance issues at the bank have been conclusively tackled.

The pan-African bank maintains it has tackled the issues raised by the IMF and instituted some corporate governance structures and reforms which had culminated in the dismissal of the then Group CEO, Mr Thierry Tanoh, and his replacement by Mr Albert Essien in March last year.

Earlier this month, IMF released a report titled: ‘Pan-African Banks – Opportunities and Challenges for Cross-Border Oversight.’ The report made references to governance issues at Ecobank, which some readers may perceive as being current.

But ETI, (in an email), in response to enquiries by the Daily Graphic, said the information used by IMF with regards to internal governance at the bank dates back 18 months ago to the period between the mid-2013 and early 2014.

IMF today issued a media statement acknowledging that references to governance at Ecobank in the report were from the 2013/2014 period and not references to governance at Ecobank today.

The statement noted that IMF was aware of the steps Ecobank had taken to strengthen governance and avoid risks to financial stability.

It acknowledged recent news that Ecobank had raised equity capital for the group and announced an equity capital increase to meet regulatory capital requirements in Nigeria.

The IMF welcomed these developments as steps in the right direction.

The Ecobank Group reaffirms its financial strength and strong governance as a systemically important banking group in Africa.

ETI has total assets of over US$23 billion. As the IMF statement alluded to, in the last six months, Ecobank has raised approximately US$1 billion in combined equity and debt capital for its parent company and its business in Nigeria, the largest of the group’s affiliates.

source : Graphic Online