Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Industries Company News

Bank CEOs declare war on debtors over N8.16 trillion bad loans

Bamidele Samuel Adesoji by Bamidele Samuel Adesoji
May 31, 2019
in Company News, General News
Contract staffing in Nigeria Banks, Nigerian Banks, Number of contract staff across Nigerian banks drop by 3,083, biggest in 4 years  
Share on FacebookShare on TwitterShare on Linkedin

It will no longer be business as usual for chronic debtors as the Committee of Banks’ Chief Executive Officers (CEOs) disclosed plans to go tougher in efforts to bring blacklisted defaulters to book.

The Bank CEOs disclosed this during a meeting held in Lagos to review what it described as “harassment and criminalisation of banks’ CEOs by law enforcement agencies”. It was further revealed that the CEOs have perfected plans for all banks to cooperate and collaborate in order to fish out all defaulters.

“Chronic bank debtors were now in the habit of enlisting law enforcement agencies including police, judiciary and state securities to harass and criminalise banks’ CEO, which was unacceptable.”

Numbers Explained: As at the end of 2018, the National Bureau of Statistics (NBS) indicated that total non-performing loans stood at N8.1 trillion. Although the Asset Management Corporation of Nigeria (AMCON) has recorded some success in its debt recovery bid, reports show that AMCON only recovers about N1.4 trillion bad loans on a yearly basis.

In terms of non-performing loans ration to the total, Nigeria’s Non-Performing Loans Ratio was 13.03% in 2018, compared to 14.9% in 2018. Non-Performing Loans Ratio stood at an all-time high in December 2009 when the ratio stood at 32.8%. Its lowest was in December 2014 when it stood at 2.9%.

Further Details: According to the Banks’ CEOs, plans have been perfected to go beyond publishing the names of defaulters in national media. This time, all banks will be speaking with one voice, sharing information about those entities, and refusing to do further business with them until they settled their obligations.

Similarly, the CEO addressed smear campaigns by defaulters which are always targetted at banks and their CEOs in a desperate bid to either delay repaying loans or avoid meeting their debt obligations completely.

“To avoid the kind of crisis that rocked the banking sector 10 years ago, all agencies and stakeholders will step up and help fight the inherent menace of chronic loan defaulters.”

Optics: The move by the bank CEOs to review strategies to recover bad loans may not be unconnected to the recent Monetary Policy Committee’s (MPC) directive to the CBN to develop a comprehensive administrative, legal, and regulatory framework to speed up the recovery of delinquent loan facilities in the Nigerian banking system. According to the CBN Governor, Mr. Godwin Emefiele;

“The MPC welcomed the improvement in financial soundness indicators, but noted that although the non-performing loan ratio moderated, it remained above the prudential benchmark.”

Upshots: A non-performing loan (NPL) is a loan that is several months overdue or in default. Most analysts use 90 days delinquency to measure non-performance of a loan. A loan may become delinquent and therefore classified as non-performing because of economic misfortune.

For lenders, non-performing loans imperil the capital requirement limits and therefore make it difficult to grant new and probably more quality credits. Non-performing loans weigh down a bank’s balance sheet just as the attendant charges decrease a bank’s profitability.

Related

Tags: Bank CEOsNigerian banks' non-performing loansNon-performing loans

Comments 1

  1. Hussaini alhaji Ibrahim says:
    November 26, 2020 at 3:30 pm

    Mashamari iijere local government

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets
First bank





    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • BREAKING: Nigeria’s inflation rate jumps to 16.82% in April 2022, highest in 8 months
    • Jumia shares up 23% on back of possible Zinnox acquisition
    • Seplat Energy announces retirement of Dr. A.B.C Orjiako from company’s board

    Follow us on social media:

    Recent News

    Despite billions on agriculture, food inflation up by 108% since 2015.

    BREAKING: Nigeria’s inflation rate jumps to 16.82% in April 2022, highest in 8 months

    May 16, 2022
    Jumia & Konga: Who is best placed to win e-Commerce race?

    Jumia shares up 23% on back of possible Zinnox acquisition

    May 16, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
    • Economy
      • Macro-Economic News
      • Get Data
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com