CBN Explains Access Bank, Zenith, UBA, Others' Health Status in 2024

• The Central Bank of Nigeria (CBN) has given a clean bill of health for Nigerian banks’ Capital Adequacy Ratio (CAR)
• CBN said that there was an improvement, representing a 1.49% rise, showing the banking sector’s resilience
• The CBN report stated that development improves the banks’ total qualifying assets, boosting liquidity

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has reported an improvement in the banks’ Capital Adequacy Ratio (CAR), which rose 14.01% in Q3 2024 from 12.52% in the second quarter of this year.

CBN reported this in its Q3 economic report, saying that the improvement represents a 1.49% rise, showing the banking industry’s enhanced resilience and stability despite prevailing challenges.

Banks’ CAR remained above the benchmark

The report said the development improved the bank’s total qualifying capital and reduced risk in weighted assets.

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According to TheSun, CBN disclosed that the ratio remained above the 10% benchmark for banks for national and regional banks but below the 15% threshold requirements for banks with international licenses.

Bonds subscriptions decline in Q3 2024

However, the apex bank explained that the bank’s asset quality, measured by the ratio of non-performing loans, declined by 0.68% to 4.58%, compared to 3.90% recorded at the end of June 2024.

CBN stated that subscriptions for Nigerian Treasury Bills and FGN Bonds were reduced in the review period compared to the preceding quarter.

According to the report, the marginal rate of 20.49% was higher than 20.37% in the preceding quarter, while the bid rate remained at 22.00% to 19%.

CBN adjusts Customs exchange rates for Cargo clearance

Legit.ng earlier reported that CBN marginally increased Customs exchange rates for duty clearance.

The apex bank raised the rate from N1,532 to N1,533.067 as of Tuesday, December 17, 2024

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CBN reduces Customs exchange rate to clear goods at ports ahead of Christmas

According to information from the Customs trade portal, the new rate means importers clearing cargo from Nigeria’s air and seaports will pay N1 more, leading to reduced prices.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng