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CBN Head
office, Abuja
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A liquidity stress
test conducted by the Central Bank of Nigeria (CBN) has revealed that capital
position of ‘three small banks’ have fallen below regulatory capital
requirement. The
test, contained in the CBN Financial Stability Report released yesterday,
showed the Capital Adequacy Ratios (CARs) of the affected banks were below five
per cent regulatory threshold.
The
three banks are not among the domestic systemically important banks (D-SIBs),
it said.
The
report, which measured the lenders’ positions as at June this year, showed that
the number of banks with CAR less than five per cent also increased from zero
to three from December 31, 2014 to June 30, 2015. The CAR is a ratio of a
bank’s assets to its risks.
