CBN Tightens Watch On Banks’ Concentrated Lending

The Central Bank of Nigeria (CBN) has warned banks against excessive concentration of loans in particular borrowers, sectors, geographic regions and asset classes, saying such exposures could undermine the resilience of institutions despite the N4.65 trillion raised through the banking sector recapitalisation.
CBN director, Banking Supervision, Dr Olubukola Akinwunmi, stressed the need for banks to strengthen their capacity to identify, measure, monitor and control concentration risks as they enter the post recapitalisation era, noting that a diversified loan portfolio remains a critical defence against financial shocks.
He explained that the Regulation on Large Exposures and Guidelin...