CBN Reveals How Many Nigerian Banks Failed Its Stress Test

The Central Bank of Nigeria has revealed how seven different commercial banks in the country could not pass its stress test.

Naija News learnt that the funding positions of seven commercial banks are inadequate as the financial stability report signed by CBN Director, Financial Policy and Regulation Department, Kelvin Amugo, showed that in the less than 30-day period analysis.

Meanwhile, in the 31 to 90-day period, nine banks had funding gaps.

The report, however, said the cumulative position for the industry showed an excess of N4.8 trillion assets over liabilities.

The seven banks were, however, not named by the apex bank. Nigeria has 24 banks.

The report, which covered the period ended December 2018, showed that six banks accounted for 82 percent (N252.00 billion) of total placements and 86 percent (N 266 billion) of total takings, of which 71 percent (N190 billion) was provided by the top four placers of funds.

The stress test result revealed that, after a one-day run scenario, the liquidity ratio for the industry declined to 34.69 per cent from the 51.87 per cent pre-shock position and to 17.55 and 13.48 per cent after a five-day and cumulative 30-day scenarios.

The result also revealed that, under five-day and cumulative 30-day run scenarios on the banking industry, liquidity shortfalls declined to N1.58 trillion and N1.98 trillion.