CBN Stress Test Reveals Banks’ Vulnerability to Economic Headwinds Obinna Chima A stress test conducted on 27 financial institutions under the regulation of the Central Bank of Nigeria (CBN) has shown that even though the banking industry solvency and liquidity position are still robust, the industry may be
vulnerable under the severe scenario of sustained economic contraction. The CBN, in its half-year economic report as of June 2020, posted on its website yesterday, stated that it conducted top-down solvency and liquidity assessment of the banking industry in the
review period. The stress test was conducted on 22 commercial and five merchant banks to assess their resilience to systemic risks. “The stress test was conducted within the background of a sharp fall in oil prices, reduced
global demand for Nigeria’s oil products, decline in government revenue, unfavourable current account position and a fall in Gross Domestic Product (GDP). “The result showed that under the severe scenario of a sustained significant contraction in GDP of 3.5
per cent in the third quarter of 2020, negative 4.0 per cent in the fourth quarter of 2020 and negative 4.5 per cent in the first quarter of 2021, the banking industry CAR will fall to 11.19 per cent, 9.26 per cent and 8.30 per cent, respectively. “However, the severity
of the simulated GDP contraction may be contained by a combination of fiscal and monetary interventions,” the CBN stated The CBN, however, said one of its strategic policy thrusts over the next five years Continued on page 8
Courts Dismiss Trump’s Suits to Stop Further Counting... Page 5 Friday 6 November, 2020 Vol 25. No 9342. Price: N250
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Buhari Rallies Traditional Rulers to Pacify Youths Dispatches Gambari, others to states Govs move against restiveness, seek support for security personnel Chuks Okocha and Adedayo Akinwale in Abuja President Muhammadu Buhari yesterday enlisted the support of traditional rulers to forge a national approach towards tackling the grievances the youths presented to the federal government during the #EndSARS protests. He also mandated his Chief of Staff, Prof. Ibrahim Gambari,
to lead senior government officials to various parts of the country to engage stakeholders as part of the efforts to address the concerns raised by #EndSARS protesters. Besides, the 36 states’ governors have agreed to engage traditional rulers, religious leaders and civil society organisations to Continued on page 8
Death Toll from Enugu Epidemic Rises to 40
Peter Uzoho
The epidemic ravaging Ette Uno and Umuopu communities of Enugu Ezike, in Igbo-Eze North Local Government Area of Enugu State has killed 40 persons. The state Ministry of Health yesterday said it had collected
samples from patients and sent them to the National Reference Laboratory for investigation. The affected local government area shares boundary with Kogi State. A statement by the Commissioner for Health, Continued on page 8
ROYAL FATHERS AT THE VILLA... Emir of Kano, Alhaji Aminu Ado Bayero; Sultan of Sokoto, Alhaji Sa’ad Abubakar III; and Ooni of Ife, Oba Adeyeye Ogunwusi, during the meeting of the nation’s traditional rulers with President Muhammadu Buhari in Abuja…yesterday
NBA Raises Team to Probe Alleged Killings in Rivers Community...Page 6