Fitch Rating, Attestation Of CBN’s Good Monetary Policy -Experts

Two financial experthave
s said that the Fitch’s

NAE Vice Chairman/Managing Director, Massimo Insulla (2nd left), with Chairman, House of Representatives Committee on Local Content, Honorable Asita (2nd right) and Chairman, PETAN, Engr Emeka Ene (right) among others, during the signing of MoU between NAE and PETAN at the vendor gap closure opportunities engagement/exhibition in Port Harcourt, recently.

positive rating of Nigerian commercial banks was an attestation of the Central Bank of Nigeria (CBN) successful reforms.
Head of Markets, Sterling Capital, Mr Sewa Wusu, said the Fitch report proved that banks had been able to contain their non-performing loan problems and also maintained clean operating balance sheets.
He said the clean bill of health by Fitch rating agency was encouraging in spite of the commercial banks’ inability to generate new loans books because of the CBN’s tight monetary policies.
Wusu said banks’ effective management of loan portfolios has also created a near credit culture for the nation’s organised private sector.
The financial analyst said that banks’ clean balance sheets and reduced loan provisions had made them earn positive ratings.
Wusu added that the effects of the CBN’s tight monetary policy would manifest after the 2015 elections when the regulatory institution would have lessen it.
He added that the development would then make banks function effectively as financial intermediary lend institutions.
Also the President of Chartered Institute of Administration (CIA), Mr Goddy Idaminabo, said that Nigerian banks deserved the Fitch’s commendation in spite of the tight monetary policies and new banking rules.
Idaminabo said the banks rating was a function of the performance and growth of the Nigerian economy.
He said that in spite of the nation’s economic growth, the banks rating indicted commercial banks needed to do more in leveraging the gross domestic products and the general well- being of Nigerians.
Idaminabo said that the nation could record further growth which would also translate to a positive development in the banking sector if corruption could be reduced to its barest minimum.
The CIA president said that the nation had not performed ‘badly’ in spite of the challenges such as corruption, insurgency among others, which it experienced.
He also said that the CBN embarked on tight monetary policy actions to ensure that it reduce the excess liquidation from the system ahead of the 2015 elections.