Fitch raises banks’ foreign currency loan risk to 130%
Fitch Ratings Inc., one of the world’s big three credit rating agencies, has said that its recent stress test on Nigerian banks included increasing the risk-weight on foreign currency (FC) loans to 130 percent (from 100%)to reflect extra difficulty for borrowers servicing FC loans with a weaker naira. It also indicated that if Nigerian banks […]
Nigerian banks’ market-based reporting of FC exposure may impair capital adequacy, says Fitch
Fitch Ratings has said that if Nigerian banks adopt a more market-based presentation of foreign-currency (FC) assets, liabilities and profit-and-loss items, small banks would not be able to meet their capital adequacy requirements as specified by the regulatory authorities. In a statement released Thursday, the international rating agency noted that financial statements with FC items […]
Nigerian banks credit expansion outlook positive as yield on fixed income instruments fall
Financial analysts say there could be likely improvements in credit expansion by Nigerian banks in the near to medium as yield on fixed income instruments appear to be no longer attractive. Equally, the general positive outlook of the economy is seen promoting production activities, especially in the oil and gas sector, which would see more […]
Nigerian banks lose 8.7% deposits to treasury bills in 12 months as depositors switch investments
High yield levels of over 18 percent from treasury bills investments in recent times have haemorrhaged Nigerian banks’ deposits by 8.7 percent as most depositors switched to treasury bills (T-bills) investments, according to Fitch Ratings. “Central Bank of Nigeria (CBN) data show that volumes of naira time and savings deposits held by the banking sector […]
Nigerian lenders still favour public sector with 6% credit growth against 0.02% decline to private sector
Average credit to the private sector by Nigerian banks declined marginally by 0.02 percent in 2Q17 as against a 5.91 percent growth in public sector credit, according to data released by Nigeria’s National Bureau of Statistics (NBS) on the economy, Tuesday. Analysts say the development was as a result of banks hedging against the risk […]
Nigerian smaller banks more at risk on growing NPL levels as some lenders record lower capital ratios
BMI Research, a Fitch company, has indicated that Nigerian smaller banks are on top of risk watch on growing non-performing loans (NPL) in the industry. In a recent Nigeria Commercial Banking Report, its analysts say NPLs threaten capital adequacy ratio (CARs) in the smaller banks, adding that a stress test by the CBN released in […]
Nigeria’s Access Bank takes 30% haircut on its 9Mobile loan, insists Etisalat UAE still has obligation
Nigeria’s Access Bank said Wednesday that it is taking a 30 percent haircut on its loan to troubled telecoms firm 9Mobile, formerly known as Etisalat Nigeria. Herbert Wigwe, the bank’s chief executive, specifically said Access indeed booked a N4 billion ($13 million) impairment on its loan to the troubled firm, adding that the bank had […]
FG’s refund of oil marketers’ N800bn to improve liquidity in Nigerian banks
Nigeria’s industrial base may be up for a return to operating at installed capacity through improved access to loan facilities from money deposit banks. The soon expected refund of money owed oil marketers is said to be capable of improving liquidity among banks. Manufacturers especially those operating at medium and small scale levels have continued […]