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Tag: Banks

‘Regulators should watch out for banks’ early distress signs’

‘Regulators should watch out for banks’ early distress signs’

Finance
With about N157.15 billion provisions for bad loans posted by 13 Nigerian banks in the half-year (H1) performance, capital market operators have urged regulators to watch out for early warning signals of financial distress, so as to take quick remedial actions. The operators admitted that Nigerian banks have remained resilient to economic disruptions, but argued that the COVID-19 pandemic has inflicted colossal damage to businesses across sectors. They pointed out that further pressure on the banking sector – whether through losses from provisions or write off, is capable of eroding their profits and cash flow. The Vice President, Highcap Securities, David Imafidon, said the loan loss of N157 billion reported by 13 banks in the second quarter (Q2) is alarming. He pointed ou...
Put on Human Face in Dealing with Debtors, Unegbu Tells Banks

Put on Human Face in Dealing with Debtors, Unegbu Tells Banks

Business
The Managing Director of Maxifund Securities Limited, Mr. Okechukwu Unegbu, has advised banks to adopt mediatory process in resolving disputes expected to arise between them and their debtors due to the disruptions by the COVID-19 pandemic. Unegbu, a former President of the Chartered Institute of Banker of Nigeria (CIBN) and a former chief executive of the defunct Progress Bank, said this in a paper he presented at the monthly forum of the Financial Correspondents Association of Nigeria’s (FICAN) webinar titled: “COVID-19 and the Future of Banking,” organised in Lagos at the weekend. He urged banks to put on a human face in dealing with their respective clients. Unegbu explained: “They must add human face to their operation by sitting down with their debtors to find out how to en...