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.”