As at December 31, 2013, the gross loans of the eight strategically important banks (SIBs) in Nigeria amounted to ₦7.1 trillion, representing 74 per cent of the entire industry’s loan book, a report by Agusto & Co. has revealed.
The Central Bank of Nigeria (CBN) had in 2013, designated eight banks as strategically important banks. By virtue of their size and systemic importance to the Nigerian banking industry, the apex bank deemed these banks as “too big to fail”. This implies the regulator has placed stricter control and enforcements on these banks.
The banks are: First Bank Limited, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Plc, Access Bank Plc, Ecobank Plc, Diamond Bank Plc and Skye Bank Plc.
Tagged, “2014 Industry Reports,” the report exposed several challenges facing the banking, telecommunication, agric and other important sectors of the Nigerian economy and examined the financial condition of the eight banks vis-a-vis the industry.
According to the report, the total assets and contingents of the eight SIBs amounted to ₦19 trillion. This represents an 18 per cent growth over prior year and accounts for 72 per cent of the industry’s total assets (2012: 69%).
The portfolio of loans, the report revealed, was the largest earning asset class, forming 36.5 per cent of total assets and contingents.
