…seeks more ambitious tax reforms, increase in excise duties
The International Monetary Fund on Wednesday called on the Central Bank of Nigeria to contain rising banking risks in the country, while also commending the regulator for its recent decision to stop weak banks from paying dividends to shareholders.
Against the backdrop of huge non-performing loans, which have weakened the capital base and asset quality of the country’s Deposit Money Banks, it also called on the apex bank to carry out an asset quality review in order to identify any potential capital need among the lenders.
The call came in the IMF’s Article IV Consultation, an annual appraisal of a country’s economy, which was released in Washington DC, United States.
The report came a few days after an IMF team completed its Article IV Consultation visit to Nigeria for 2018.
The IMF executive board assessment report read in part, “Directors stressed that rising banking sector risks should be contained. They welcomed the central bank’s commitment to help increase capital buffers by stopping dividend payments by weak banks.
“They called for an asset quality review to identify any potential capital need. They noted that an enhanced risk‑based banking supervision, strict enforcement of prudential requirements, and a revamped resolution framework would help contain risks.”Continue reading.