Business
Banks’ non-performing loans ratio rises to 5.3% in April 2022
Nigerian banks’s non-performing loans (NPL) ratio rose to 5.3% in April 2022 from 4.84% held in February 2022, according to data from the Central Bank of Nigeria (CBN).
This is even as capital adequacy ratio (CAR) increased to 14.6% in April 2022 from 14.5% in December 2021, showing that it is above its prudential limit.
“In the Banking System, the Capital Adequacy Ratio (CAR) and the Liquidity Ratio (LR) remained above their prudential limits at 14.6 and 43.7 per cent, respectively,” the CBN said.
According to the apex bank, the banking system is stable but there is a need to address the increase in Non-performing loans.
“The Non-Performing Loan (NPL) ratio stood at 5.3 per cent in April 2022, compared with its prudential limit of 5.0 per cent, reflecting sustained stability in the banking system, though there remains a need to bring this down to the prudential limit,” it said.