Monday, Sep 21st 2020 5:56 PM
Lagos
+29°C

Market Digest Nigeria

Business

Banking sector still under pressure—MPC

The weak macroeconomic environment in Nigeria has continued to exert pressure on the banking system, the Monetary Policy Committee (MPC) has emphasised.

This is in spite of the resilience shown by the banking industry in Nigeria since the country slipped into recession last year.

In 2016, majority of financial institutions in Nigeria declared profit despite many firms declaring loses.

But at the end of its meeting in Abuja on Tuesday, the MPC warned that the sector, which is very critical to the economy, was still under pressure.

The committee advised the Central Bank of Nigeria (CBN), which monitors the industry, “to intensify its surveillance” on banks.

The committee explained that this was necessary “in order to address emerging vulnerabilities” so as not to experience a crash of the sector.

Furthermore, the Committee “called on the DMBs to step up credit to the private sector to support economic recovery and convey a positive feedback to the financial system.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top
SUBSCRIBE NOW!
Get the best of Market Digest Nigeria financial news
delivered to your inbox daily!
By clicking Give it a try, I hereby: Agree and Consent to the Terms of Use and the Privacy Policy
& I may receive free newsletters & promotions from this site and can choose to unsubscribe anytime.