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