The Central Bank of Nigeria (CBN) has given three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy ratio of 10 per cent.


According to a Reuters report which quoted the apex bank at the weekend, the three banks were not named but they were said to be among the group of 14 in Nigeria that have licenses to operate as regional and national lenders, with respective capital bases of N10 billion ($50 million) and N25 billion.


The report also quoted the CBN as saying that it was monitoring the three lenders' recapitalisation plans, and that 10 others with international status met the 15 per cent minimum capital rate for that category of bank at the end of June.


The recapitalisation schedule, contained in a report dated Oct. 30, only came to light on Friday.
A number of banks had had to suspend moves to raise fresh funds as a result of the volatility in the capital market and unfavourable operating climate.


Nigerian lenders have been shoring up their balance sheets in preparation for adopting stricter international requirements that analysts say could erode capital ratios by between 100 and 400 basis points to near the regulatory minimum of 15 per cent.


Meanwhile, poor capital conditions at home due to slowing economic growth have weakened domestic markets, analysts say.
Last week, the central bank told commercial lenders to double provisions on performing loans to two per cent to build adequate buffers against unexpected losses, as liquidity ratios fall.


It said lower revenues for government and oil companies due to plunging crude prices have led to unsecured exposures for banks that are likely to increase credit risk and loan losses.


Ratings agency Moody's said this week it expected non-performing loans (NPLs) to rise above five per cent but remain below 10 per cent over the next two years as the weaker naira increases the risk of dollar loans and suppresses bank capital.
NPLs in Nigeria's banking sector rose to 4.65 per cent at the end of June due to a fall in asset quality following a devaluation of the naira and amid rising inflation, the central bank said in the report.


Stanbic IBTC last week said it had doubled its non-performing loan ratio to 8.8 per cent. The bank was also planning to raise fresh funds.
Ecobank and Skye Bank have both suspended plans to raise fresh equity owing to weak market conditions and slower loan growth.


Wema Bank, which suspended plans partly because of the naira weakness, said on Thursday it would resume a share sale next year and has started a process to raise $100 million worth of naira bonds after getting approval to switch from a regional to a national bank.
Sources close to Wema Bank told THISDAY at the weekend that Wema Bank’s books are in good shape, explaining that the regulatory authority would not have issued the bank a national licence if it was in a distress.


By coming back to the mainstream of Nigerian banking, through the issuance of a national licence, analysts believe Wema is doing well and that the recent turnaround by the bank’s management is yielding the desired results.
In a circular signed by the CBN Director of Banking Supervision, Mrs. Tokunbo Martins, the apex bank stressed the need for banks to raise provision for their non-performing loans to two per cent.


The circular read, “In recent times, the adverse macro-economic environment has been a source of concern in the financial sector. It is however comforting to know that the fiscal and monetary authorities are deploying remedial policy measures to ameliorate these challenges. “Accordingly, in line with the provision of section 12.14 of the Prudential Guidelines for Deposit Money Banks 2010 (Regulators Power over Adequacy of Provisioning), banks are required to immediately increase the general provision on performing loans to 2 per cent in the prudential review of their credit portfolios. This is an attempt to ensure that adequate buffers against unexpected loan losses are built up. This directive is without prejudice to the relevant provisions of the International Financial Reporting Standards”

http://www.thisdaylive.com/articles/3-banks-fail-car-test-get-june-2016-recapitalisation-deadline/226366/ lalasticlala, slydog, Tinyemeka, ednut1, davide470

Hmmm, which banks abeg?

its for those that keep their money in the bank, for me i'm not afraid

What are the names of the 3 banks?

Names please.......

End time banks.

Hmmmmm...

Adesiji77:

http://www.thisdaylive.com/articles/3-banks-fail-car-test-get-june-2016-recapitalisation-deadline/226366/ lalasticlala, slydog, Tinyemeka, ednut1, davide470

i cant read that long things . what is the names of the three bank's?

As long as it doesn't stop us from hacking into your database.

Contact me for all your CC and money highways.

Money highway ? Fck u Robot.


Contact me for all your CC and B.A.N.K logins.

WEMA IS INCLUDED

FIDELITY

JAIS BANK

UBA go make d list

Some peeps wey b say na 546:42K dem get insyde account sef dey ask 4 NAMES of d bank

no UBA is richer than skye bank ... and skye bank is not included in the list i have with me simply because they steal money from the atm

Check out my signature for a life time investment that guarantees u a financial freedom

buy and large

use you head to know the name of the Banks.

a

wallai...Ecobank is among

Wema Bank and Keystone Bank. Those two banks need attention.

informative
A BRIEF INTRODUCTION
Pounded yam as it is fondly called is a delicacy that commands respect and preference and often ranked topmost in a typical Nigerian menu list. It is an all carbohydrate food prepared traditionally by pounding boiled yam in a wooden mortar for a considerable period of time until desired texture is attained, for example, the smoothness or elasticity.
However, the pounding process is not an easy exercise.
While some homes and eating houses can afford the time and energy it takes to produce this cherished delicacy for domestic and commercial purpose, studies have shown that the traditional method of pounding yam can expose food to contamination due to dripping sweat and mucus from the body of the person doing the pounding. The activities of houseflies’ fungal growth in the internal walls of the wooden mortar and pestles after washing and kept for a longtime also constitute another source of food contamination.
There also exist some category of people who cannot afford the time, energy and the associated inconveniences involved in yam pounding both for household use and commercial purpose. Technically speaking, converting boiled yam into pounded yam can simply be termed as a TASK.
Peak Yam Pounding Machines are electro-mechanical devices designed to perform the task of converting boiled yam into pounded yam by a mechanical process that is electrically and electronically controlled.
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If them born them well let them list the banks, in two months depositors will withdraw all their funds.

Wema Bank is one of them.

I suspect FirstBank may be among

Why not mention the names already

Be calling suspence news breaking news?

Hope diamond and gt nor dey o

I believe we should always update our knowledge on certain issues before misleading the public, especially on sensitive matters. the CBN was clear that non of the systemically important banks is in the list. I believe people do know that the eight largest banks in the country, led by UBA, FirstBank, Zenith, GTBank and Access are the systemically important banks in Nigeria. More so, banks like UBA, Zenith, GTBank and Access have more than the required capital adequacy ratio, following the capitalization of their earnings. You will recall that these banks also paid interim dividends some months ago, following the approval of the CBN, which has considered their capital, liquidity and other important measures of soundness before such dividend approval and payment.

PLANETMARS:
Apology letter from planetmars
Dear nairalanders,
I would no longer blame Biafra as am now sane I know some of my remarks has greatly hurt u people my sincerely apologies.
You people are peace loving and always avoid crime. I just hope ur leader would be released soon

though his scrotum has been long used for suya.
Sorry to d great people of Biafra. Find a place in ur cocaine smuggling, fake drug,expired drinks........................ U knw d rest heart to forgive me
Yours sincerely
#planetmars

Beesluv:
Hmmm, which banks abeg?

Dem don use style mention the banks for you and you still dey ask quession

end time banks