Global Organisation, Fitch Ratings, Warns That Nigerian Banks Might Be In Trouble?


Fitch Rating, one of the three nationally recognized statistical rating organizations designated by the U.S. Securities and Exchange Commission, is warning that Nigerian banks are heading into financial and operational storms in view of what it called the increasingly difficult conditions under which they are operating.

According to reports from This Day, this might likely result in a sharp deterioration in profitability, asset quality, liquidity and capital ratios.

The latest report released on Thursday by the Director, Financial Institutions, Mahin Dissanayake, Fitch Ratings states that Nigerian banks are highly exposed to the domestic market and that the economic slowdown would affect their performance.

Nigerian banks have had to contend in recent months with the increased vulnerability of the oil and gas sector, pressure on the Naira, the slower economy and tightening bank liquidity which are all credit negative for the sector. 

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