A stress test conducted by a Dubai-based international investment bank, Arqaam Capital, has indicated that seven Nigerian banks are undercapitalised to the tune of N1tn ($3.2bn).
A stress test conducted by a Dubai-based international investment bank, Arqaam Capital, has indicated that seven Nigerian banks are undercapitalised to the tune of N1tn ($3.2bn). It also reported that two other banks were close to being insolvent.
The investment bank said the Nigeria’s banking industry “is experiencing a full-blown financial crisis” as failed fiscal and monetary policies had led to a credit crunch. The stress test identified the undercapitalised banks as First Bank of Nigeria, Unity Bank Plc, Diamond Bank Plc, Skye Bank Plc, FCMB Group Plc, Sterling Bank Plc and Fidelity Bank Plc.
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