The CBN’s maiden examination of the bank as at June 2006 queried the bank’s reported shareholders’ funds and directed the bank to beef up its capital within six months. The inability of the bank’s Board to resolve the issue of the contributions of each legacy institution to its capital led to a special CBN/NDIC Examiners to re-certify the bank’s capital.
A bank by bank contribution to the shareholders’ fund revealed that only the former Guardian Express bank and ACB International brought positive capital to the merger. However, despite its weak capital base, the other indicators show that the bank has a strong promise: its deposit base and liquidity situation are strong.