**Nigerian anti-corruption police have begun bringing criminal charges against executives from five banks rescued in a 400bn naira ($2.6bn; £1.6bn) bail-out.**Former Finbank chief Okey Nwosu pleaded not guilty to 11 charges relating to bad debt built up under his management.
Other executives will appear in court later, said the country’s Economic and Financial Crimes Commission (EFCC).
The banks needed rescuing after they were found to have very low cash reserves because of bad loans.
The EFCC said some loans were unsecured or did not have board approval, and that, in some cases, they went to individuals or companies using fictitious names.
‘System sound’
Five bank bosses have been removed as a result of the crisis.
Fifteen other chief executives at the banks - Afribank, Intercontinental Bank, Finbank, Oceanic Bank and Union Bank - are being questioned by police after the loans were not repaid.
Shares in the five banks, which account for 40% of the country’s bank credit, have been suspended.
They had run up bad loans totalling a collective 1.14 trillion naira.
However last week, the governor of Nigeria’s Central Bank said that the banking system was sound following the financial scandal that has rocked the country.