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The Central Bank of Nigeria (CBN) is currently carrying out examination on banks, in order to ascertain the actual well-being of banks owing to the nation’s macroeconomic challenges and rising non-performing loans, ThisDay reports.
The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, disclosed to Thisday that the effort is to determine how best the industry should be supported by the Apex bank.
Banking sector NPLs have been predicted to jump to 12.5 per cent of the total loans of the banks this year, up from the central bank’s target level of five per cent at the end of last year, according to Agusto & Co, Nigeria’s main rating agency.
This is even worsened by the weakening consumer confidence and slide in the country’s Gross Domestic Product (GDP).
In view of the current macro-economic challenges in the country, the CBN last week announced that it had granted a one-off forbearance to banks this year to write-off their fully provided NPLs without waiting for the mandatory one year.
Source: ThisDay
The Director, Banking Supervision, CBN, Mrs. Tokunbo Martins, disclosed to Thisday that the effort is to determine how best the industry should be supported by the Apex bank.
Banking sector NPLs have been predicted to jump to 12.5 per cent of the total loans of the banks this year, up from the central bank’s target level of five per cent at the end of last year, according to Agusto & Co, Nigeria’s main rating agency.
This is even worsened by the weakening consumer confidence and slide in the country’s Gross Domestic Product (GDP).
In view of the current macro-economic challenges in the country, the CBN last week announced that it had granted a one-off forbearance to banks this year to write-off their fully provided NPLs without waiting for the mandatory one year.
Source: ThisDay
