ziccoit:
Nigeria banks keep government money and lend the same money to the government and individuals at high interest rate. A tale of using my money to entertain me. Now that TSA is in full operation, the banks started crying. They have adapted to being spoon fed. They lack innovations. That's why the don't respect us with low saving. They feed fat from the rots. Let them fold up, may be that will pave way for serious ones to finally emerge.

BlackTechnology:


Illiteracy in full regalia. TSA is a good idea at a wrong time. By denying banks those cash, interest rates increased leading to an economic slowdown especially now that FG cut down salary allowances which is a major factor in boosting spending which in turn boost profit and encourages investment

ziccoit:
Nigeria banks keep government money and lend the same money to the government and individuals at high interest rate. A tale of using my money to entertain me. Now that TSA is in full operation, the banks started crying. They have adapted to being spoon fed. They lack innovations. That's why the don't respect us with low saving. They feed fat from the rots. Let them fold up, may be that will pave way for serious ones to finally emerge.

Meanwhile, the CBN has stated that the sustained low crude oil price and supply constraints at the foreign exchange market as well as other macroeconomic conditions impacted negatively on the quality of bank loans, raising their non-performing loans (NPLs) ratio to 10.1 percent in April 2016.
The current ratio is well above the prudential limit of five percent and further raises concerns over banks’ asset quality.
According to the apex bank, the implementation of the Treasury Single Account (TSA) caused a decline of N1.02 trillion in banks’ total deposits, which dropped to N17.51 trillion in April 2016 compared to N18.54 trillion in April 2015.
Also, industry total assets decreased by 0.6 percent or N158 billion to N27.43 trillion in April 2016 from N27.58 trillion in the corresponding period of 2015.
According to the CBN, industry Gross credit fell 0.3 percent to N13.36 trillion in the period under review compared to N13.40 trillion the previous year.
According to figures provided by CBN Deputy Governor, Economic Policy, Sarah Alade, industry Cash Adequacy Ratio (CAR) further deteriorated to 16.5 percent in April 2016 from 17 percent in 2016 following decline in the total qualifying capital-occasioned by regulatory deductions, retirement of Tier II capital, impairment as well as increase in the total task weighted assets.
In her presentation to the Bankers’ Committee on the state of the economy and update on the regular Monetary Policy Committee (MPC) meeting, a copy which was obtained by THISDAY, banks’ unaudited profit before tax for the period ended April 2016 decreased by 10.8 percent or N24 billion to N198 billion from N222 billion in 2015.
She said bank’s return on equity (ROE) and return on assets (ROA) both fell to 2.17 percent and 16.17 percent in 2016 from 2.42 percent and 19.39 percent respectively.
“The decline was driven largely by a decrease in both interest and non-interest income, which declined by 6 percent or N50 billion and 5.4 percent or N259 billion respectively,” she stated.
It further emerged that industry liquidity ratio (LR) stood at 46.3 percent in 2016 compared to 39.78 percent in 2015-and showed that banks operated far above the minimum requirement of 30 percent.