A Central Bank of Nigeria’s (CBN) Financial Stability Report for 2018 has shown that seven banks are not adequately funded if there was a bank run within 30 days.
This came to light after the CBN’s Banking Industry Stress Test.
Though the names of the banks were not revealed, what it means is that if customers were to make heavy demand within that time frame, the banks would have had funding difficulties.
This does not mean the banks are in trouble, but that they are short of capital.
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The report also put the banking industry’s cumulative assets over liabilities at an excess of N4.8 trillion, meaning the industry is solvent or having assets in excess of liabilities.
The previous Financial Stability Report of 2017 had suggested that some banks were likely to suffer more losses over credit exposure to the oil and gas sector.
Diamond Bank (now part of Access Bank) was hinted to be one of those banks which later led to the merger with Access Bank.