Strong indications have emerged that six Nigerian banks are on the verge of a merger in January, 2016.
According to THE CITIZEN, the merger is as a result of the shock created in their assets and balance sheet sizes in the face of declining oil prices.
The publication reports that the development arises, “no thanks to the shock created in their assets and balance sheet sizes in the face of declining oil prices. Crude oil prices have fallen to as low as $37.11 per barrel from over $110 per barrel a year ago. This has adversely affected banks’ oil assets. Besides, the level of non-performing loans in the sector has risen.”
Confirming the development, the Managing Director, Sterling Bank Plc, Yemi Adeola, who disclosed the news, reportedly stated that he envisaged possible shrinking in the number of local banks in the New Year.
He however, did not list the banks involved in the merger.