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50 Debtors Owe Banks N5.6 Trillion

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The challenge of defaulting credits, which has put the banking system under pressure, may not end soon as financial institutions’ top 50 debtors owe N5.59 trillion (34 per cent) of total industry credit exposure of N16.29 trillion.

But an adverse economic impact on the borrowers and their businesses, resulting in rising default, additional provisioning by banks and consequent reduction in banks’ Capital Adequacy Ratio (CAR), has been blamed for the default.

The N5.59 trillion represents 77 per cent of the nation’s 2017 federal budget proposal at N7.3 trillion, and would comfortably fund the non-debt recurrent expenditure at N2.98 trillion, as well as capital expenditure of N2.24 trillion.

It also amounts to the size of three large banks; six medium size banks; the entire small size banks; and the entire capital base requirements of all the banks and other financial institutions in the country. What this effectively says is that administration of credit by the banks has not been widespread. It is restrictive, leaving unserviced a large chunk of small and mid-scale operators who need financial lifelines to remain afloat.

The revelation came just as the banking industry Non-Performing Loans (NPLs) moved up from 11.7 per cent to 12.8 per cent at the end of 2016 to N2.1 trillion at the end of December 2016 from N1.67 trillion in June of the same year.

But despite the NPL challenges, Nigerian banks have been adjudged stable in a six-month financial stability test, amid declining economic growth, rising credit risks and default that have affected the operations.

The stability of the banking sector has been attributed to the regulatory foresight in adopting prudential ratios that are far above international thresholds, which now serve as a buffer for the operators in difficult times.

Credit default has become a lingering challenge in the banking sector, with the Asset Management Corporation of Nigeria (AMCON), battling non-responsive debtors that liquidated some lenders since 2010, while fresh ones are now piling up, creating an operational and survival dilemma.

The Managing Director of First Registrar, Bayo Olugbemi, said the problem of credit was not about the volume, but the level of performance. He sees nothing to worry about in the number of people involved in the debt but cautioned that financial institutions no longer have excuse for not checking up the background of creditors before proceeding, as it has become easier with emerging policies and technologies.

“The Bank Verification Number (BVN) is now operational, hence a serial debtor will not succeed easily in duping several institutions at once. Again, banks would need to step up their monitoring of loans performance,” he said.

Frontline economist, Bismarck Rewane, said it was not totally unexpected given the challenging macroeconomic situation in the country, but admitted that increase in industry NPL, with such debt concentration, must be watched.

“Of course, in a high interest rate environment with challenging economy, the level of default must rise. This shows that something more needs to be done, otherwise the trend will continue with obvious repercussion,” he said.

As at December 2016, loans to the oil and gas sector constituted 30.02 per cent of the gross loan portfolio of the banking system as credit to that sector grew from N4.5 trillion to N4.9 trillion.

The development showed that despite the economic misfortunes of crude oil, banks are still lending heavily to the sector operators, and perhaps in efforts to aid further their operations or to other related sub-sector.

“Overall, credit risk remains tangible in 2017 as obligors remain constrained in servicing both naira and foreign currency-denominated loans due to the low level of economic activities, low international oil prices and the depreciation of the naira,” the Financial Stability Report of the Central Bank of Nigeria noted.

The liquidity ratio for the banking industry increased by 1.35 percentage points to 43.96 per cent, above the prudential minimum limit of 30 per cent, as they all raised stake in government’s assets with the increased Monetary Policy Rates from 12 per cent to 14 per cent.

Specifically, the stress test covering 23 commercial and merchant banks, to evaluate their resilience to credit, liquidity, interest rate and contagion risks, showed that capital adequacy indicators declined marginally, but remained above the regulatory thresholds,

The banking industry is categorised into large (assets more than N1 trillion); medium (assets more than N500 billion but less than N1 trillion); and small banks (assets less or equal to N500 billion).

The baseline CAR for the industry, large, medium, and small banks stood at 14.78 per cent, 15.47 per cent, 12.75 per cent and 3.14 per cent, representing 0.04 per cent, -0.18 per cent, 0.76 per cent and -0.02 per cent change from June 2016 record for each category.

Source: Guardian

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Cleric Warns Bobrisky, Reveals When He Will Die (Video)

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Popular Nigerian male barbie, Bobrisky has been told to change his ways as he has just few years to live before he dies.

Islamic cleric, Hammed Ademola who claimed that Bobrisky’s money is from the devil said the crossdresser has about 3 years before he dies.

He further added that Bobrisky’s friends would soon have problems in their lives, which is a consequence of befriending an evil.

Ademola also said that Bobrisky would soon have regrets for going under a knife to be transformed from a man to a woman.

Recall that she recently issued a warning to all crossdressers to not think of taking her throne because she is the queen of crossdressers.

Watch the video below:

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Dead Man Made To Sit On A Chair At His Own Funeral (Photos + Video)

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In what will come across as a really startling development, a dead man has been made to sit at his own funeral.

According to Trinidad Express, the dead man was embalmed into a sitting position, placed in the tray of a hearse and given an open-air last ride past the Office of the Prime Minister on the way to his funeral.

Dressed in a suit and in a chair, murdered Che Lewis was placed in the back of a pick-up van by Dennie’s Funeral Home and driven around Port of Spain on Wednesday.

Witnesses and social media users were stunned.

TTPS Road Safety Co-ordinator Brent Batson told Express via a What’s App message that the funeral home’s manner of transporting the deceased will be investigated.

The dead man was made to sit on a chair at his funeral

Batson said, “The TTPS is disappointed in the reckless behavior engaged in by a funeral home being circulated on social media whereby persons were seen seated in the vehicle tray seemingly as part of a funeral procession. Carrying persons in a dangerous manner is an offence Regulation 38 Rule 17 of the Motor Vehicle Road Traffic Act (MVRTA) with a $1,000 penalty and the TTPS will be continuing investigation into funeral company’s conduct on the road.”

Several videos of the ‘last ride’ were posted on social media, with many commenting that this was “proof that Trinidad is not a real place”, while others said they idea was only novel in Trinidad but was done in other countries.

Lewis, 29, and his father Adlay Lewis, 49, were shot and killed on November 15 at their home at First Trace, Bagatelle Road, Diego Martin.

His funeral was streamed live on social media, but not all the viewers were aware that the man sitting at the entrance to the church was the deceased.

There was also a question as to why he was not wearing a mask.

The funeral home informed that because of the “unique funeral, the church was astonished and refused the entrance of Che”.

Following the funeral service at the St John The Evangelist R.C Church at Church Street, Diego Martin the bodies of father and son were interred the St John The Evangelist Cemetery.

The funeral home also intends introducing a new form of body disposal to Trinidad and Tobago.

It is know as alkaline hydrolysis, a process for the disposal of human and pet remains using lye and heat.

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Shebi You Have Your Own Life, Why Can’t You Mind Your Own Business – Bobrisky Slams Critics

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Nigerian crossdresser Bobrisky has slammed those trying to advise her on how she’s living her life asking them to mind their business.

According to her, in this era of the new world, no one tells anyone how to live their lives not to talk of a 29yrs old like hers who is living her life as she wants.

Adding that those trying to advise her all have their own lives to live therefore they should mind their own business and stop trying to advise her.

At this rate, it’s obvious Bobrisky is not ready to listen to any advice from anyone on how to live her own life as he’s now a big boy at 29.

screenshot below;

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