- Post by Admin on sunday, March 05, 2015
Analysts at Moody’s Investor Service have said that lower capital by Nigeria’s midsize banks will constrain the financial institution’s capacity to grow their business, harm their revenue and delay their capital recovery through profit retention.
The rating agency stated this in a report released on Monday, after a recent report by the International Monetary Fund (IMF) showed that Nigeria’s Tier 1 banks’ capital ratio had declined to 10.8 per cent in September 2017 from 16.3 per cent in December 2016 and 17.1 per cent in 2013, and now at its lowest level in the past five years.
The report was titled: "Nigeria’s midsize banks’ declining capital is credit negative." Additionally, it stated that Nigeria’s midsize banks face greater risk of losing business to financial technology (fintech) companies because they tend to provide retail banking and payment services to individuals and small and midsize enterprises, a key entry target market for upcoming Nigerian fintechs.Photo Caption: Moody's Logo