CBN Advised To Stop Forcing Banks To Give Out Loans | Sahara Reporters

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CBN Advised To Stop Forcing Banks To Give Out Loans | Sahara Reporters
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.cenbank Advised To Stop Forcing Banks To Give Out Loans | Sahara Reporters The indigenous rating firm said a further slowdown in economic activities or a total lockdown would be crippling for the banking industry. READ MORE:

The Central Bank of Nigeria has been advised to stop coercing deposit money banks to keep giving out loans.

While stating that it expects the Nigerian economy to shrink by six per cent in a worst case scenario, the entity said, “A further slowdown in economic activities and a total lockdown may worsen an already bad situation.” “Agusto & Co. believes that the volume of stage two loans is a threat to the Industry’s asset quality and future profitability. Stage two loans primarily comprise exposures with an increase in the associated credit risk compared to when the loan was disbursed.

The firm also predicts that the decaying loans could threaten the capital base of the banking industry.

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