Nigerian banks remain stable despite negative rating – NDIC

Nigerian banks remain stable despite the country’s negative rating by the global credit rating agency, Moody’s, the Nigeria Deposit Insurance Corporation (NDIC) said on Tuesday.

The NDIC Deputy Director for Bank Examination, Abdulhameed Aliu, disclosed this at the ongoing workshop for business editors and finance correspondents organised by the Corporation in Yola.

The Moody’s Investors Service (Moody’s), one of the global credit rating agencies, had on December 4 changed its outlook on Nigeria’s ratings to negative from stable.

According to Moody’s, Nigeria’s weak operating environment posed a challenge to the banking sector in maintaining the recent improving trend, particularly on asset quality, given the increasing bank lending.

Aliu said 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 percent.

CAR is a measurement of bank’s available capital expressed as a percentage of its weighted exposures.

The deputy director said the development meant that Nigerian banks were insulated against some level of risk.

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