Wednesday, December 19, 2018 4:42:54 PM- Nigerian Stock Exchange.

  CBN stress test reveals weak capital signs in banks


March 12 (Lagos) - A CBN stress test has shown that only large banks could withstand a further deterioration of their NPLs by up to 50%. 

The banking industry was categorized into large banks [those with assets up to N1trn (US$2.8bn) or above]; medium banks (those with assets more than N500bn but less than N1trn); and small banks (those with assets up to N500bn or below). 

None of the groups withstood the impact of a 200% rise in NPLs as their post-shock CARs fell below the 10% minimum prudential requirement. The results of the stress test were contained in the CBN’s latest (H1 2017) Financial Stability Report.

reporting for on Monday, March 12 2018 from Lagos, Nigeria

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