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Debtors Africa News

Database on delinquent debtors launched
Wednesday, 10 June 2020
Database on delinquent debtors launched

An independent searchable database of recalcitrant and delinquent debtors in Africa has been launched. The database, known as Debtors Africa, was unveiled alongside a Debtors Report, a comprehensive analysis of the debts and non-performing loans in the Nigerian banking industry.

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Report: Loan Recovery May Be Challenging for Fintechs Post COVID-19
Wednesday, 10 June 2020
Report: Loan Recovery May Be Challenging for Fintechs Post COVID-19

Financial technology (Fintech) companies may have a harsh time in loan recoveries post COVID-19 as majority of them do not have transparency mandates that would support their loan recovery process, a report has stated.

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Bank NPLs (25) - The Customer's Options in a New Debt Order
Tuesday, 09 June 2020
Bank NPLs (25) - The Customer's Options in a New Debt Order

As the opportunity for debtor delinquency narrows, debtors that find themselves in difficult situations as a result of either external or internal factors unanticipated at the time of applying for the credit could adopt a few strategies that may likely lead to mutually beneficial outcomes for both borrower and lender, some options that could be adopted are listed

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Bank NPLs (24) - Handling Bad, Delinquent and Recalcitrant Debtors via DiMR
Monday, 08 June 2020
Bank NPLs (24) - Handling Bad, Delinquent and Recalcitrant Debtors via DiMR

Bad debts can be a corporate time-wasting distortion for lenders and more importantly they could represent avoidable loss of economic value. The poor behavior of borrowers falls within a framework of measurable values which include expected loss (EL), probability of default (PD), exposure at default (ED) and loss given default (LGD). The historical behavior pattern of the customer enables credit analysts assess the probability of default given other metrics related to the business and the global economic conditions.

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Bank NPLs (23) - The Case for a New Approach
Sunday, 07 June 2020
Bank NPLs (23) - The Case for a New Approach

Closing Thoughts - The Case for A New Approach The old lending paradigm has rested on traditional approaches to the loan process. The process has involved the creation of debt the management of debt and the resolution of debt (either by due loan repayment or by any other legal method of loan recovery). The model has been standard fare for decades if not centuries (see illustration 6 below).

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Bank NPLs (22) - Benchmarking Best Practice and International Debtors List
Saturday, 06 June 2020
Bank NPLs (22) - Benchmarking Best Practice and International Debtors List

Best practices in credit management differ from country-to-country, what works in one country could be less effective in another, but a set of constant practices cut across successful debt management strategies globally

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Bank NPLs (21) - The Role and Place of Credit Bureaus and Rating Agencies in Recovery Efforts
Friday, 05 June 2020
Bank NPLs (21) - The Role and Place of Credit Bureaus and Rating Agencies in Recovery Efforts

Credit Bureaus are institutions that review customer credit positions and award a score that reflects the credit history of the individual or organization as well as the repayment of the borrower (e.g. issuing dud checks over a period or regular renegotiation of payment terms).

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Bank NPLs (20) - A New Cottage Industry Emerges - Debt Factors and Loan Purchase Firms
Thursday, 04 June 2020
Bank NPLs (20) - A New Cottage Industry Emerges - Debt Factors and Loan Purchase Firms

The poor repayment culture of large debtors who tend to prove more recalcitrant than their smaller counterparts has given birth to a burgeoning debt factoring and loan repurchase business.

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Bank NPLs (19) - Issues Around Nigerian Bank Debtors List
Wednesday, 03 June 2020
Bank NPLs (19) - Issues Around Nigerian Bank Debtors List

Nigeria banks debtors have proved to be difficult to handle, especially if their debts cross the N1bn watermark. Debtors in the category of a N1bn and above tend to be more recalcitrant in repaying their loans. So why do banks give big ticket loans? Banks tend to favour big borrowers for a few reasons.

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Bank NPLs (18) - Understanding The Impact Of IFRS 9 On Selected Nigerian Banks
Tuesday, 02 June 2020
Bank NPLs (18) - Understanding The Impact Of IFRS 9 On Selected Nigerian Banks

IFRS9 took a hand in aiding the performance of Access Bank in 2018. The bank declared a profit before tax (PBT) of N103.2bn in the year as against N78.2bn in 2017, a growth of +32%. The rise in PBT came majorly from an IFRS9 day one provisioning adjustment which in addition to the bank's net interest income growth increased from N163.5bn in FY 2017 to N173.6bn in FY 2018 (+6%). Another cause for the huge reduction in impairment charges was the repayment made on EMTS loans with the bank resulting in its declassification.

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Bank NPLs (17) - IFRS and Accounting Standards
Monday, 01 June 2020
Bank NPLs (17) - IFRS and Accounting Standards

Impairments Overview: IFRS 9 and Its Impact Understanding IFRS9 and its Implications for Banks -The Accountants Point of View IFRS9 came into effect in Nigeria's Financial Services Sector on 1 January 2018. The new Accounting Standard assesses impairments of financial assets on an expected credit loss basis as opposed to the incurred credit loss basis that was applied under the previous IAS 39 rules. A few other twists are pointed out in the extracts from the Ernst and Young ("EY") guidance manual below:

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Bank NPLs (16) - The Place of Arbitration, Resolution or Debt Management
Sunday, 31 May 2020
Bank NPLs (16) - The Place of Arbitration, Resolution or Debt Management

The Place For Arbitration, Resolutions Or Debt Management / Court "We urge you to designate some of the courts for AMCON cases. We urge you to assist in granting accelerated hearing for AMCON cases."

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Bank NPLs (15) - AMCON and Its Role in Debt Recovery
Saturday, 30 May 2020
Bank NPLs (15) - AMCON and Its Role in Debt Recovery

The Asset Management Corporation of Nigeria was created on the 19th of July 2010, via the AMCON Act No. 4, 2010. The AMCON Act was subsequently amended on the 25th of May, 2015 and became known as the AMCON Amendment Act, 2015. AMCON was established to bring stability and revive the financial system by taking on the job of resolving the problem of Non-Performing Loans (NLPs).

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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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Other News

Battery Materials Market Worth USD 60.61 Billion at 5.9% CAGR by 2027; Increasing Demand for Electric Vehicles to Favor Growth, Says Fortune Business Insights™ - GlobeNewswire
Wednesday, 25 November 2020

Battery Materials Market Worth USD 60.61 Billion at 5.9% CAGR by 2027; Increasing Demand for Electric Vehicles to Favor Growth, Says Fortune Business Insights™ - GlobeNewswire

Top companies cover in the battery materials market are NICHIA CORPORATION (Tokushima, Japan), NEI Corporation (Somerset, U.S.), TCI Chemicals (India) Pvt. Ltd.

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Abbey Mortgage Bank announces appointment of 6 Directors - Nairametrics
Wednesday, 25 November 2020

Abbey Mortgage Bank announces appointment of 6 Directors - Nairametrics

The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.

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PZ Cusson announces retirement of Chairman, Kola Jamodu - Nairametrics
Wednesday, 25 November 2020

PZ Cusson announces retirement of Chairman, Kola Jamodu - Nairametrics

PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.

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Largest American Publisher Penguin Random House Buys Rival Simon & Schuster in $2.2 Billion Mega Deal - The Daily Beast
Thursday, 26 November 2020

Largest American Publisher Penguin Random House Buys Rival Simon & Schuster in $2.2 Billion Mega Deal - The Daily Beast

Competitor HarperCollins said that the deal is a strategic attempt at “buying market dominance as a book behemoth.”

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‘We should be substantially back to normal’ by summer 2021, says Operation Warp Speed's chief science advisor - CNBC
Thursday, 26 November 2020

‘We should be substantially back to normal’ by summer 2021, says Operation Warp Speed's chief science advisor - CNBC

Operation Warp Speed's Chief Science Advisor Moncef Slaoui said, “We hope that we'd have vaccinated 70% to 80% of the U.S. population by May or June of 2021."

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State suspends 3 liquor licenses, cites 4 establishments for violating Michigan COVID order - WDIV ClickOnDetroit
Thursday, 26 November 2020

State suspends 3 liquor licenses, cites 4 establishments for violating Michigan COVID order - WDIV ClickOnDetroit

Liquor licenses have been suspended at three Michigan establishments Wednesday for violating the state’s recent public health order meant to slow the spread of coronavirus.

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R50,000 paid to Ford owners whose vehicles caught alight, but some continue legal fight - TimesLIVE
Wednesday, 25 November 2020

R50,000 paid to Ford owners whose vehicles caught alight, but some continue legal fight - TimesLIVE

Most of the owners of Ford Kugas that caught fire will finally close that chapter with the company.

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Old Mutual becomes latest insurer to lose a Covid-19 case in court - SowetanLIVE
Wednesday, 25 November 2020

Old Mutual becomes latest insurer to lose a Covid-19 case in court - SowetanLIVE

Another insurance company has failed to defend its decision not to pay a client for losses incurred due to the Covid-19 lockdown.

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30% of all Netflix, Showmax shows must be from SA, govt insists - Business Insider South Africa
Wednesday, 25 November 2020

30% of all Netflix, Showmax shows must be from SA, govt insists - Business Insider South Africa

South Africans may soon be forced to pay more for Netflix and other streaming services due to government’s new broadcast licensing proposals.

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Emirates Has Refunded A Staggering $1.7 Billion Since April - Simple Flying
Wednesday, 25 November 2020

Emirates Has Refunded A Staggering $1.7 Billion Since April - Simple Flying

Emirates has processed refunds worth AED 6.3 billion ($1.7 billion) since April, during aviation’s worst-ever year. The amount…

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‘We should be substantially back to normal’ by summer 2021, says Operation Warp Speed's chief science advisor - CNBC
Thursday, 26 November 2020

‘We should be substantially back to normal’ by summer 2021, says Operation Warp Speed's chief science advisor - CNBC

Operation Warp Speed's Chief Science Advisor Moncef Slaoui said, “We hope that we'd have vaccinated 70% to 80% of the U.S. population by May or June of 2021."

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Vancouver empty homes tax will triple to 3% starting in 2021 - CBC.ca
Wednesday, 25 November 2020

Vancouver empty homes tax will triple to 3% starting in 2021 - CBC.ca

The tax came into effect in 2018 with the aim of motivating owners of empty and under-utilized properties to put them into the rental market.

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Wednesday's list of potential COVID-19 exposure locations - HalifaxToday.ca
Wednesday, 25 November 2020

Wednesday's list of potential COVID-19 exposure locations - HalifaxToday.ca

Anyone who visited the following locations on the specified date and time to immediately book a COVID-19 test

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Millions of Americans to travel and gather for Thanksgiving despite expert warnings - The Guardian
Thursday, 26 November 2020

Millions of Americans to travel and gather for Thanksgiving despite expert warnings - The Guardian

Recent surveys show a meaningful minority of Americans intend to go ahead with travel and gatherings

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Students may be compensated for lost teaching during UK lockdown - The Guardian
Thursday, 26 November 2020

Students may be compensated for lost teaching during UK lockdown - The Guardian

Watchdog orders university to pay student £1,000, but NUS says complaints process is ‘farcical’

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Doubts raised over AstraZeneca-Oxford vaccine data - Financial Times
Wednesday, 25 November 2020

Doubts raised over AstraZeneca-Oxford vaccine data - Financial Times

Oxford university acknowledges error that forced trial to switch dosing regimens

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Employers CAN make the coronavirus vaccine mandatory at the workplace - Daily Mail
Wednesday, 25 November 2020

Employers CAN make the coronavirus vaccine mandatory at the workplace - Daily Mail

Employment law firm Ogletree Deakins says companies should consider the 'politicized nature' of the coronavirus and expect objections if they choose to make the vaccine mandatory.

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