The nation’s Deposit Money Banks is currently dominated by seven operators, with a cumulative asset base of 63.8 per cent, valued at N35.1 trillion, the latest Financial Stability Report of the Central Bank of Nigeria has said.
An examination conducted by the apex bank revealed that the D-SIBs were largely in compliance with the regulatory requirements, including capital adequacy and liquidity ratios. Specifically, the baseline Capital Adequacy Ratio for the banking industry at end of December 2018 was 15.26 per cent, indicating 3.18 percentage points increase from the 12.08 per cent recorded at end of June 2018.
Contagion risk analysis through the interbank exposures and interconnectedness showed that six banks accounted for 82 per cent of total placements and 86 per cent of total takings.