Yola – The Nigeria Deposit Insurance Corporation (NDIC) on Tuesday said that the country’s banks remain stable in spite of a negative rating
Mr Abdulhameed Aliu, NDIC Deputy Director for Bank Examination, said this at the ongoing workshop for business editors and finance correspondents by the corporation in Yola.
The theme of the workshop is,”Nigerian Banking System Stability: Tackling Emerging Issues”.
Moody’s Investors Service (Moody’s), one of the global credit rating agencies, on Dec. 4 changed its outlook on Nigeria’s ratings to negative from stable.
According to it, Nigeria’s weak operating environment posed a challenge to the banking sector in maintaining the recent improving trend, particularly as regards asset quality, given the increasing bank lending.
Aliu said that the regulators, which included the NDIC and the Central Bank of Nigeria (CBN), had put in place frameworks that would continuously ensure that the banking industry remains strong.
He said that the commercial banks’ Capital Adequacy Ratio (CAR) had improved from 10 per cent to 15 per cent, higher than the right per cent threshold.
CAR is a measurement of bank’s available capital expressed as a percentage of its weighted exposures.
The deputy director said that the development meant that Nigerian bank’s were insulated against some level of risks.