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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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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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Other News

Harvest: Crypto that gives interest on your Bitcoin - Nairametrics
Thursday, 24 September 2020

Harvest: Crypto that gives interest on your Bitcoin - Nairametrics

Harvest offers crypto users the platform to supply crypto assets for lending and earn interest on them.

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Exchange rate falls across forex markets despite improved dollar supply - Nairametrics
Thursday, 24 September 2020

Exchange rate falls across forex markets despite improved dollar supply - Nairametrics

The Naira depreciated against the dollar at the Investors and Exporters (I&E) window on Wednesday.

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World?s operating nuclear fleet at 30 year low as new plants stall ? report - Marketscreener.com
Thursday, 24 September 2020

World?s operating nuclear fleet at 30 year low as new plants stall ? report - Marketscreener.com

The number of nuclear reactor units operating globally is at a 30 year low, while new plants struggle for investment, an industry report said on Thursday.

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Govt. Services Firm Tyler Technologies Hit in Apparent Ransomware Attack - Krebs on Security
Thursday, 24 September 2020

Govt. Services Firm Tyler Technologies Hit in Apparent Ransomware Attack - Krebs on Security

Tyler Technologies, a Texas-based company that bills itself as the largest provider of software and technology services to the United States public sector, is battling a network intrusion that has disrupted its operations. The company declined to discuss the …

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SPI Energy skyrockets 4,300% after announcing launch of EV business | Markets - Business Insider
Thursday, 24 September 2020

SPI Energy skyrockets 4,300% after announcing launch of EV business | Markets - Business Insider

SPI Energy skyrockets 4,300% after announcing launch of EV business

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New York City subway riders discovering unpleasant surprises in cars, platforms - WABC-TV
Thursday, 24 September 2020

New York City subway riders discovering unpleasant surprises in cars, platforms - WABC-TV

The MTA has been cleaning subway cars daily overnight between 1 a.m. and 5 a.m. when service is suspended amid the coronavirus pandemic, but some riders say there are still lingering issues.

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Top FDA vaccine adviser recuses herself over tie to Moderna: report - Fox News
Thursday, 24 September 2020

Top FDA vaccine adviser recuses herself over tie to Moderna: report - Fox News

A top adviser has resigned from the Food and Drug Administration's (FDA) vaccine advisory committee amid concerns about her ties to a pharmaceutical company conducting a trial for the highly anticipated treatment.

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Bitcoin Could Target $200,000 This Cycle, According to Crypto Analyst Nicholas Merten – Here's How - The Daily Hodl
Thursday, 24 September 2020

Bitcoin Could Target $200,000 This Cycle, According to Crypto Analyst Nicholas Merten – Here's How - The Daily Hodl

Prominent crypto analyst and DataDash founder Nicholas Merten believes that Bitcoin may soar as high as $200,000 in this current boom cycle. In a recent installment of DataDash, Merten notes that the market cap for both DeFi and cryptocurrencies is relatively…

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Here are your Lotto and Lotto Plus results - News24
Wednesday, 23 September 2020

Here are your Lotto and Lotto Plus results - News24

Here are the winning Lotto and Lotto Plus numbers from the Wednesday, 23 September, draw.

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City Power cuts off defaulting Dainfern residents - eNCA
Wednesday, 23 September 2020

City Power cuts off defaulting Dainfern residents - eNCA

At least 204 properties owe the city R13-million in revenue.

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America’s 2021 Mercedes-AMG GT Coming With More Power And A Stealth Edition - CarScoops
Wednesday, 23 September 2020

America’s 2021 Mercedes-AMG GT Coming With More Power And A Stealth Edition - CarScoops

As with the Euro model, the base 2021 Mercedes-AMG GT now makes 523 HP.

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Air Canada Refinances 18 Airbus A220 Aircraft - Simple Flying
Thursday, 24 September 2020

Air Canada Refinances 18 Airbus A220 Aircraft - Simple Flying

Air Canada has secured two longer-term refinancing transaction agreements worth about C$1.52 billion (~US$1.14 billion), replacing short-term facilities.…

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Canada adds 1,085 new coronavirus cases as Trudeau warns of second wave - Global News
Thursday, 24 September 2020

Canada adds 1,085 new coronavirus cases as Trudeau warns of second wave - Global News

The new infections reported Wednesday bring the country's total case count to 147,612.

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Regina Superstore, construction site exposed to coronavirus - CTV News
Thursday, 24 September 2020

Regina Superstore, construction site exposed to coronavirus - CTV News

People who tested positive for COVID-19 visited two locations in Regina last week, according to the Saskatchewan Health Authority.

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Wells Fargo's Charles Scharf apologises over race comments - BBC News
Wednesday, 23 September 2020

Wells Fargo's Charles Scharf apologises over race comments - BBC News

The head of the US bank apologises for an "insensitive comment reflecting my own unconscious bias".

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Time to get serious about food waste in fight against global heating - The Guardian
Thursday, 24 September 2020

Time to get serious about food waste in fight against global heating - The Guardian

It is responsible for 8% of emissions, yet food waste is not mentioned in any country’s Paris climate action plan

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Everything you now can't do in England as new Covid-19 rules come into force today - Chronicle Live
Thursday, 24 September 2020

Everything you now can't do in England as new Covid-19 rules come into force today - Chronicle Live

Boris Johnson announced the new regulations on Tuesday and they will be enforced from Thursday, with tough fines for those who break them

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Coronavirus curfew could kill the heart of London as revellers melt into the night - Sky News
Thursday, 24 September 2020

Coronavirus curfew could kill the heart of London as revellers melt into the night - Sky News

Soho's night time economy is worth billions of pounds and supports thousands of jobs in the hospitality sector.

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Covid-19: UK volunteers could be given virus to test vaccine - BBC News
Thursday, 24 September 2020

Covid-19: UK volunteers could be given virus to test vaccine - BBC News

'Human challenge trials' to test the effectiveness of possible Covid vaccines may be held in London.

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