Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • 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
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Get Data
    • Macro-Economic News
    • Research Analysis
  • 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 Financial Services

CBN’s Emefiele explains why banks restructured N7.8 trillion loans to customers

Emmanuel Abara Benson by Emmanuel Abara Benson
July 22, 2020
in Financial Services
Godwin Emefiele, CBN expands scope of regional banks in Nigeria, gives compliance timeframe

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN)

Share on FacebookShare on TwitterShare on Linkedin

While answering questions at the end of yesterday’s Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria, Governor Godwin Emefiele explained why Nigerian banks were encouraged to restructure as much as 41% of their loans to customers.

“If the CBN did not ask the banks to grant these forbearances to their customers, the loans will go bad immediately by our prudential ratios,” Emefiele stated.

Just a few months ago, the apex bank had granted a temporary suspension on loan interests and repayment on principal debts, in a calculated effort to mitigate the negative impacts of the pandemic. Nairametrics understands that N7.8 trillion worth of loans, out of a total of N19.9 trillion, have so far been restructured for 35,640 customers of 22 banks.

READ MORE: Nigeria’s foreign reserves fall to 6-weeks low, lose $81.10 million

As Emefiele explained, these moves became absolutely necessary amid the COVID-19 pandemic. According to him, it would be preferable to restructure up to 65% of loans instead of allowing such loans to go bad.

The Nigerian banking sector has long been battling to deal with the issue of non-performing loans. Interestingly, Nigeria’s non-performing loan ratio improved to 6.4% as of H1 2020, compared to 11.1% during the comparable period last year.

The backstory

An earlier report by Nairametrics, last month, quoted CBN’s Deputy Governor, Aisha Ahmad, to have disclosed how 17 banks submitted requests to restructure over 32,000 loans for individuals and businesses who were impacted by the pandemic. However, based on Emefiele’s explanation, yesterday, it is apparent that the number of banks that have made that same request is now more than 17, even as the volume of loan restructured is more than 32.94% as previously reported.

READ MORE CBN mulls ‘quantitative easing’ as it considers buying commercial papers at single digits

Explore research data on Nairalytics from Nairametrics


Do note that some top CBN officials, including Governor Godwin Emefiele, met in Abuja yesterday for the 274th meeting of the Monetary Policy Committee. Nairametrics earlier reported that majority of the members voted to retain the Monetary Policy Rate (MPR) constant at 12.5%. You may read up more on the resolutions that were reached during the meeting by clicking here.

Related

Tags: Business NewsCBN MPC MeetingCentral Bank of NigeriaLoan RestructuringNigeria News

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

    • AfDB to lend $500 million to women in 2022, to raise $5 billion for women businesses in Africa
    • Konga Food goes live, offers customers free, fastest delivery, other incentives
    • Corporate Actions: These companies have announced dividend payments in May 2022

    Follow us on social media:

    Recent News

    Konga Food goes live, offers customers free, fastest delivery, other incentives

    Konga Food goes live, offers customers free, fastest delivery, other incentives

    May 23, 2022
    Corporate Actions, NSE

    Corporate Actions: These companies have announced dividend payments in May 2022

    May 23, 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
      • Securities
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
      • Real Estate and Construction
      • Tech News
    • Economy
      • Get Data
      • Macro-Economic News
      • Research Analysis
    • 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