Central Bank of Nigeria (CBN) has dismissed reports that seven Nigerian Banks are undercapitalised.
Director, Banking Supervision, Tokunbo Martins disclosed this yesterday at the Bankers Committee Meeting in Lagos.
Arqaam Capital, an international investment bank based in Dubai, had reported that seven Nigerian banks were undercapitalised to the tune of $3.2bn. The Stress test the company also shows that two banks were close to insolvency.
Central Bank Says Non-Performing Loans Normal
Martins said commercial banks were facing some challenges that were not peculiar to Nigeria. She added that Non Performing Loans (NPL) at 11% was not the focus for now. She urged that the reports are not credible and should be dismissed.
The director added that a country can have non- performing loans at this period but it should not be demonised because of this.
She also stated that the banks have huge capacity to generate income to absorb losses arising from such loans.