Nigerian Banks Are Not Broke
Lagos – The Central
Bank of Nigeria (CBN) has said that there is no truth in a report that
seven Nigerian banks are undercapitalised.
The Director, Banking Supervision, Mrs Tokunbo Martins, told journalists
at the end of the Bankers Committee Meeting in Lagos on Wednesday that
there was no truth in the report.
A Dubai-based International Investment Bank, Arqaam Capital, had
reported that seven Nigerian banks were undercapitalised to the tune of
N1tn about 3.2 billion dollars.
Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele
Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele
The stress test by Arqaam Capital also reported that two banks were
close to being insolvent.
Martins said that commercial banks were facing some challenges that were
not peculiar to Nigeria, adding that Non Performing Loans (NPL) at 11
per cent was not the focus for now.
“As Director Banking Supervision, I wish to state that the report that
seven banks are undercapitalised is not true.
“That our banks have non-performing loans at 11 per cent is not the
focus for now. We should totally ignore such a story,’’ Martins said.
The director said that commercial banks in the country had huge capacity
to generate income to absorb any losses that could arise from such
loans.
Nigerian Banks Are Not Broke
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