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Bank NPLs (14) - Regulatory Guidance, Conduct and Enablers
Friday, 29 May 2020
Bank NPLs (14) - Regulatory Guidance, Conduct and Enablers

Statutory and Judicial Position on Debt Recovery and Collection in Nigeria Very recently, the Central Bank of Nigeria (CBN) fined 12 major banks to a collective tune of N499.1billion for breaching CBN's policy on Loan Deposit Ratio (LDR) which the apex bank had fixed as a minimum of 60%. While this fine is huge, the attitude of the banking sector towards lending is not far removed from the attitude of debtors towards repayment.

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Bank NPLs (13) - Impact on Growth of the Credit Market
Thursday, 28 May 2020
Bank NPLs (13) - Impact on Growth of the Credit Market

Access Banks loans grew by +46.05% in Q4 2019 from -0.12% in Q4 2018, as its NPL rose from +5.8% in Q4 2019 from +2.5% in Q4 2018. Access Bank's NPL does not clearly explain its growth in loans over the years. The expectations are that a reduction in NPL will lead to an increase in the growth in loans.

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Bank NPLs (12) - Impact of NPLs on Income Trends
Wednesday, 27 May 2020
Bank NPLs (12) - Impact of NPLs on Income Trends

Despite the increase of Access bank's non-performing loan to +5.8% in Q4 2019 from +2.5% in Q4 2018, Its profit before tax rose to N115.40bn in Q4 2019 from N103.19bn in Q4 2018.

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Bank NPLs (11) - Technical Analysis on Banks' NPLs - LDR
Tuesday, 26 May 2020
Bank NPLs (11) - Technical Analysis on Banks' NPLs - LDR

Access Bank had a downward trending LDR between 2009 and 2014. Access Bank highest LDR within the time period was +84.2% in Q2 2010 while its lowest LDR was +41.2% in Q1 2012

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Bank NPLs (10) - Technical Analysis on Banks' NPLs - Leverage Ratio
Monday, 25 May 2020
Bank NPLs (10) - Technical Analysis on Banks' NPLs - Leverage Ratio

Zenith Bank had an upward trending leverage ratio between 2009 and 2014. It recorded its highest leverage ratio of +52.6% in Q4 2014 while its lowest leverage ratio of +3.27% was recorded in Q4 2012

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Bank NPLs (9) - Technical Analysis on Banks' NPLs - Liquidity Ratio
Sunday, 24 May 2020
Bank NPLs (9) - Technical Analysis on Banks' NPLs - Liquidity Ratio

Access Bank recorded its highest liquidity ratio of +87.6% in Q2 2011 while its lowest liquidity ratio of +32.1% was recorded in Q2 2010

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Bank NPLs (8) - Technical Analysis on Banks' NPLs - NPL Ratio
Sunday, 24 May 2020
Bank NPLs (8) - Technical Analysis on Banks' NPLs - NPL Ratio

Access Bank had a downward trending NPL ratio between 2009 and 2019. Its highest non-performing loan ratio of +9.3% was recorded in Q4 2011 while its lowest non-performing loan ratio of +1.7% was recorded in Q4 2015. Access Bank's asset quality deteriorated in Q4 2019, as its NPL ratio was above CBN's benchmark of +5%. Its NPL ratio increased to +5.8% in Q4 2019 from +2.5% in Q4 2018 (see Chart 58).

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Credit Bureaus and Credit Scores
Friday, 22 May 2020
Credit Bureaus and Credit Scores

A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on the individuals credit history. Credit scores steams from a key need - The need to ascertain the associated default risk of the borrowing party using historical credit reference and predict the probability that the borrower will default/perform on a new loan obligation.

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Bank NPLs (7) - Technical Analysis on Banks' NPLs - Profitability
Friday, 22 May 2020
Bank NPLs (7) - Technical Analysis on Banks' NPLs - Profitability

Access Bank had an upward trending PBT between 2009 and 2014. Access bank's highest PBT between 2009 and 2014 was N52.02bn recorded in Q4 2014, while it recorded losses of N10.64bn and N3.9bn in Q3 2009 and Q4 2009 respectively.

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COVID-19 impact: The beginning of a new bad loan cycle is here
Friday, 22 May 2020
COVID-19 impact: The beginning of a new bad loan cycle is here

The COVID-19 effect on the Indian economy, coupled with some of the schemes launched by the government to contain the problem may actually cause another wave of bad loans in the Indian banking system. Warning signals are already visible.

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Debtors Africa: AMCON; Chike-Obi's Alternative View
Thursday, 21 May 2020
Debtors Africa: AMCON; Chike-Obi's Alternative View

In response to a recent report commissioned by Debtors Africa and written by Proshare on a new approach to debtor management in Nigeria, Mr. Mustapha Chike-Obi, erstwhile Managing Director of the Asset Management Company of Nigeria (AMCON) provided an alternative view to the AMCON story on mitigating the effects of delinquent debt on the domestic banking system.

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Bank NPLs (6) - Technical Analysis on Banks' NPLs - Gross Earnings
Thursday, 21 May 2020
Bank NPLs (6) - Technical Analysis on Banks' NPLs - Gross Earnings

This section evaluates the performance of banks during the period under review. A thorough analysis was done on DMB's gross earnings, profitability, leverage, liquidity, LDR, NPL's and its impact on each banks profitability and credit growth rate. The periods under review was divided into two periods which connotes the reign of different Central Bank Governors;

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Bank NPLs (5) - How Banks Fared In 2018; Holding Up Against IFRS9 Tropical Winds
Wednesday, 20 May 2020
Bank NPLs (5) - How Banks Fared In 2018; Holding Up Against IFRS9 Tropical Winds

The Nigeria banking sector faced harsh challenges in 2018 as growth in the gross domestic product ("GDP") stalled in the face of falling Inflation and tighter monetary policy. GDP in 2018 grew by a sluggish +1.93% while Inflation closed the year at a modestly high +11.44%. But not only did GDP growth rate hit a large speed bump; the unemployment rate equally soared to scary heights as the industry lost most of its steam. The unemployment rate rose by +23.1% in Q3 2018 as against +18.8% in the same quarter a year earlier. Underemployment rate equally rose to +20.3%. The combined unemployment and underemployment rate for Nigeria in 2018 was therefore +43.4%; easily one of the worst in Africa.

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Bank NPLs (4) - A Short History of Recovery Efforts - A Time Series Analysis
Monday, 18 May 2020
Bank NPLs (4) - A Short History of Recovery Efforts - A Time Series Analysis

Loan recovery has had a colourful history in Nigeria. Indeed, resolving the issues of bad bank loans has existed for at least three decades but the problem became more challenging as bank capital grew larger and lenders had access to bigger loanable funds. The lending capacity of banks grew significantly between 2005 and 2010 and between 2010 and 2015. Nevertheless, with bigger lender capacity came larger loan headaches, with the economy in a recessionary tailspin in 2015 and 2016, NPLs also rose with banks making larger loan impairment adjustments on their income statements. By 2018 banks were gearing up for the implementation of new accounting rules by the International Financial Reporting Council (IFRC) and the new IFRS9 provisions which required banks to take impairment charges from a forward-looking perspective as against the rear-view approach adopted by the previous International Accounting Standard (IAS).

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Debtors Africa Launches Searchable Digital Database of Recalcitrant and Delinquent Debtors
Sunday, 17 May 2020
Debtors Africa Launches Searchable Digital Database of Recalcitrant and Delinquent Debtors

Debtors Africa - an independent searchable database of recalcitrant and delinquent debtors in Africa was launched into the market today, in addition a Debtors Report - a comprehensive analysis of the Debt/Non-Performing Loans Situation in the Nigerian Banking Industry was also presented for information.

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Bank NPLs (3) - The State of NPLs
Sunday, 17 May 2020
Bank NPLs (3) - The State of NPLs

The Current State of NPLs in Banks In the last decade, NPLs have been creatures of a weak global and domestic economy and poor loan administration in different banks to different degrees, depending on the bank. How We Got Here - NPLs in Nigeria Banks 2008 - 2018 The global financial crisis of 2007-2008 created challenges in the Nigerian economy, the drying up of global liquidity put increased pressure on the domestic financial market as interest rates went up and weak domestic spending resulted in growing corporate inventories and climbing debt.

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Bank NPLs (2) - The Banking Industry and Its NPL Position
Saturday, 16 May 2020
Bank NPLs (2) - The Banking Industry and Its NPL Position

Bad bank loans are as old as banking itself. Borrowers of money from banks default on agreed repayment terms for a variety of reasons which include, but are not limited to, the following:

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Bank NPLs (DR 1) - The Case for a New Industry Approach
Thursday, 14 May 2020
Bank NPLs (DR 1) - The Case for a New Industry Approach

This report represents a culmination of a detailed review of the credit experiences of local Nigerian banks in the last two decades and reveals the challenges of a local lending cycle that has seen lenders become victims of the tyranny of bad and delinquent debtors.

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AMCON's Recoveries from Debtors Rise to N1.1tn
Tuesday, 12 May 2020
AMCON's Recoveries from Debtors Rise to N1.1tn

Asset Management Corporation of Nigeria (AMCON) yesterday said it has recovered a total of N1.1 trillion from debtors since its establishment.

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Unlawful Account Freeze: EFCC and Banks Cannot Take Laws into Their Hands
Sunday, 10 May 2020
Unlawful Account Freeze: EFCC and Banks Cannot Take Laws into Their Hands

An Ikeja High Court has ordered Diamond Bank Plc (Access Bank Plc) to pay a Lagos-based legal practitioner, Adetokunbo Odutola, Twenty Five million naira (N25m) as damages for unlawfully freezing his bank account.

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CBN Right of Set-Off - A Case of Regulatory Over-Reach?
Sunday, 10 May 2020
CBN Right of Set-Off - A Case of Regulatory Over-Reach?

At the 345th meeting of the banker's committee on the 26th of August, 2019, a decision was taken or rather an instruction was handed down by the Central Bank of Nigeria (CBN) through the Governor. It is called the "CBN Right of Set-Off" and it basically allows the CBN to utilize the deposit of a customer in another bank to off-set a defaulting obligation.

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AMCON Takes Over Cedar Oil Over N24bn Debt
Sunday, 10 May 2020
AMCON Takes Over Cedar Oil Over N24bn Debt

Asset Management Corporation of Nigeria has taken over the operations of Cedar Oil & Gas Exploration and Production Limited on the orders of a Federal High Court sitting in Lagos.

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New Offer Letter Clause for Credit Facilities by Nigerian Banks
Sunday, 10 May 2020
New Offer Letter Clause for Credit Facilities by Nigerian Banks

The Central Bank of Nigeria has been implementing regulatory measures to spur credit growth in the economy to accelerate economic expansion and boost employment creation.

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CBN Grants Banks' Approval To Debit Loan Defaulters
Sunday, 10 May 2020
CBN Grants Banks' Approval To Debit Loan Defaulters

The Central Bank of Nigeria (CBN) has given approval to the banks to debit any defaulting debtor across all the banks where the debtor has funds. The CBN also approved that the clause permitting the banks to apply this measure should be part of loan agreements to all customers.

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FHC Raises Doubt As To The Legality of Foreign Currency-Denominated Loans by Nigerian Banks
Sunday, 10 May 2020
FHC Raises Doubt As To The Legality of Foreign Currency-Denominated Loans by Nigerian Banks

It is common practice for Nigerian banks to grant loan facilities to customers in need of funds for the purpose of executing a project, to serve as working capital or for the acquisition of assets and for some loan facilities to be denominated in foreign currency.

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Other News

Hackers blew Twitter ‘god mode’ on shenanigans - Fortune
Thursday, 16 July 2020

Hackers blew Twitter ‘god mode’ on shenanigans - Fortune

The damage could have been so much worse.

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Twitter freezes password reset to address cyberattack - Nairametrics
Thursday, 16 July 2020

Twitter freezes password reset to address cyberattack - Nairametrics

Users will be updated on the progress of the investigations and their account functionalities.

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OPEC+ asks Committee to monitor Nigeria, others over extended oil production cuts - Nairametrics
Thursday, 16 July 2020

OPEC+ asks Committee to monitor Nigeria, others over extended oil production cuts - Nairametrics

OPEC expects the increase in supply to be offset by countries like Nigeria

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CVS and Target join other major retailers in requiring masks in US stores - CNN
Thursday, 16 July 2020

CVS and Target join other major retailers in requiring masks in US stores - CNN

CVS and Target will require customers to wear masks in their stores across the United States as the retail industry moves to enforce mask mandates to slow the spread of the coronavirus.

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Warren Buffett reaps $40 billion from giant Apple stake since March bottom - CNBC
Thursday, 16 July 2020

Warren Buffett reaps $40 billion from giant Apple stake since March bottom - CNBC

Berkshire Hathaway's Apple stake is now 40% of its equity portfolio after the tech giant's massive rally.

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Twitter says hacking of high-profile Twitter accounts was a "coordinated social engineering attack" - CBS News
Thursday, 16 July 2020

Twitter says hacking of high-profile Twitter accounts was a "coordinated social engineering attack" - CBS News

Scammers took over the accounts of moguls, politicians and celebrities, telling millions of followers to send money to a Bitcoin address.

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Primedia starts retrenchment process as Covid-19 continues to shake up media - News24
Thursday, 16 July 2020

Primedia starts retrenchment process as Covid-19 continues to shake up media - News24

The group includes radio stations 702, KFM and CapeTalk, as well as national news brand EWN and an advertising arm.

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Wave of Bitcoin (BTC) Bull Runs Will Crush Crypto Critics, Says One of the World’s Most Renowned Historians - The Daily Hodl
Thursday, 16 July 2020

Wave of Bitcoin (BTC) Bull Runs Will Crush Crypto Critics, Says One of the World’s Most Renowned Historians - The Daily Hodl

One of the world's most renowned historians says many Bitcoin boom and bust cycles are coming, and critics of

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The rand is now the world's most undervalued currency – here's where it should be - Business Insider South Africa
Thursday, 16 July 2020

The rand is now the world's most undervalued currency – here's where it should be - Business Insider South Africa

The currency is now undervalued by 67.4%, compared to Brazil (-32%), Argentina (-39%) and India (-56%).

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COVID-19 vaccine hopes raised by fresh trials - EWN
Thursday, 16 July 2020

COVID-19 vaccine hopes raised by fresh trials - EWN

The studies are the latest to inspire hopes of developing a vaccine after nearly 600,000 deaths and 13.4 million cases worldwide since the outbreak began in China last year.

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Posthaste: Canada's housing market is defying the bears — but two crucial drivers are missing from this rebound - Financial Post
Thursday, 16 July 2020

Posthaste: Canada's housing market is defying the bears — but two crucial drivers are missing from this rebound - Financial Post

Sales activity jumped 63 per cent in June — but the resurgence is up against powerful forces

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Largest California Oil Driller Files for Bankruptcy - OilPrice.com
Thursday, 16 July 2020

Largest California Oil Driller Files for Bankruptcy - OilPrice.com

California Resources, the largest oil driller in the state, has filed for Chapter 11 bankruptcy protection

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Twitter breach troubling, undermines trust, experts say - CBC.ca
Thursday, 16 July 2020

Twitter breach troubling, undermines trust, experts say - CBC.ca

A breach in Twitter's security that allowed hackers to break into the accounts of leaders and technology moguls is one of the worst attacks in recent years and may shake trust in a platform politicians and CEOs use to communicate with the public, experts said…

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Genting Casinos closures put 1,600 jobs at risk - BBC News
Thursday, 16 July 2020

Genting Casinos closures put 1,600 jobs at risk - BBC News

The leisure group said is shutting three of its clubs in a "heartbreaking decision".

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Monzo launches new premium Plus account which offers interest - but there is monthly fee - Express
Thursday, 16 July 2020

Monzo launches new premium Plus account which offers interest - but there is monthly fee - Express

MONZO has today launched a new premium account - Monzo Plus. The account offers customers the opportunity to earn one percent interest on balances up to £2,000 - however there is a monthly fee which customers need to be aware of.

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Mortgages and loans to become tougher to get, banks say - Sky News
Thursday, 16 July 2020

Mortgages and loans to become tougher to get, banks say - Sky News

Demand for loans has fallen during the lockdown but borrowers could find it harder to obtain credit as the economy reopens.

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Vodafone calls for 5G auction to be scrapped - BBC News
Thursday, 16 July 2020

Vodafone calls for 5G auction to be scrapped - BBC News

It cites the need to strip out Huawei equipment coupled with economic uncertainty as reasons

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