The troubled Nib Bank has removed its CEO as part of a sweeping reorganization directed by Ethiopia's central bank to address a deepening liquidity crisis.
Nib Bank has been facing serious liquidity issues, with most branches unable to meet withdrawal demands from customers due to a critical shortage of cash, prompting the National Bank of Ethiopia (NBE) to intensely scrutinize the lender and remove the previous board.
On February 14th, the new Nib Bank board, which took over after the NBE removed all former directors citing underperformance, met with regulators. The NBE had also placed a 5-year leadership ban on previous board members.
At the meeting, restructuring was discussed as key to resolving Nib's liquidity problems and restoring oversight. Subsequently, the board led by new Chair Shisema Shewaneka removed President and CEO Genene Ruga.
In a statement, the bank said Genene’s removal kicks off a 90-day turnaround plan. His removal pends investigation into leadership under his watch. The reorganization will assess managers and fill vacant roles.
The leadership changes signal a last-ditch bid to remedy liquidity shortfalls wreaking havoc on branches. Depositors and employees of the banks anxiously await signs Nib can surmount challenges threatening its viability under its newly installed board and management.
