{"id":36926,"date":"2019-12-09T23:11:20","date_gmt":"2019-12-09T22:11:20","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=36926"},"modified":"2019-12-09T23:11:20","modified_gmt":"2019-12-09T22:11:20","slug":"nigerian-s-african-banks-to-face-challenges-moodys","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/nigerian-s-african-banks-to-face-challenges-moodys\/","title":{"rendered":"Nigerian, S\/African Banks To Face Challenges&#8211;Moody`s"},"content":{"rendered":"<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\"><em><strong>***Rating Agency Changes 2020 Outlook For African Banks to<\/strong><\/em><\/div>\n<div dir=\"ltr\"><em><strong>Negative\u00a0<\/strong><\/em><\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Bayo Akinloye<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">The 2020 outlook for African banks has changed to negative from<\/div>\n<div dir=\"ltr\">stable, reflecting their weakening operating environment, Moody&#8217;s<\/div>\n<div dir=\"ltr\">Investors Service said in a report published today.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">According to the topmost rating agency, the outlook for African banks<\/div>\n<div dir=\"ltr\">in 2020 is negative due to weakening operating conditions and rising<\/div>\n<div dir=\"ltr\">asset quality pressures banks will maintain high exposures to their<\/div>\n<div dir=\"ltr\">respective sovereigns, linking their credit profiles to those of their<\/div>\n<div dir=\"ltr\">governments.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">The global economy remains sluggish with negative business sentiment<\/div>\n<div dir=\"ltr\">and trade uncertainty clouding growth prospects.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">In Africa, government debt is high and GDP growth will remain below<\/div>\n<div dir=\"ltr\">potential and insufficient to boost per capital income levels or<\/div>\n<div dir=\"ltr\">increase economic resilience.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Moody\u2019s changed its 2020 outlook for African banks to negative from<\/div>\n<div dir=\"ltr\">stable as the banking systems suffer due to the weakening environment<\/div>\n<div dir=\"ltr\">of the countries in which they operate.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">&#8220;Weakening operating conditions are pressuring governments&#8217; credit<\/div>\n<div dir=\"ltr\">quality leading to a knock-on effect on banks through reduced business<\/div>\n<div dir=\"ltr\">generation, slower credit growth, and rising asset risk,&#8221; said<\/div>\n<div dir=\"ltr\">Constantinos Kypreos, Senior Vice President at Moody&#8217;s.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">Asset risk will remain high, a result of rising government arrears,<\/div>\n<div dir=\"ltr\">high loan concentrations, borrower-friendly legal frameworks, and<\/div>\n<div dir=\"ltr\">still evolving risk management and supervision capabilities.<\/div>\n<div dir=\"ltr\">Importantly, banks will maintain high exposures to their respective<\/div>\n<div dir=\"ltr\">sovereigns, which links and caps their credit profiles to those of<\/div>\n<div dir=\"ltr\">their governments.<\/div>\n<div dir=\"ltr\"><\/div>\n<div dir=\"ltr\">&#8220;However, most rated African banks maintain high capital levels, and<\/div>\n<div dir=\"ltr\">funding and liquidity in local currency will remain solid in most<\/div>\n<div dir=\"ltr\">countries. Regional variations remain: banks in South Africa, Nigeria,<\/div>\n<div dir=\"ltr\">Tunisia, and Angola will face the greatest challenges; Egyptian,<\/div>\n<div dir=\"ltr\">Moroccan, Mauritian and Kenyan banks will be more resilient,&#8221; Moody&#8217;s<\/div>\n<div dir=\"ltr\">said in a statement today.<\/div>\n<\/p><div data-ad-id=\"32665\" style=\"text-align:center; margin-top:0px; margin-bottom:0px; margin-left:0px; margin-right:0px;float:none;\" class=\"afw afw_ad_image afw_ad afwadid-32665  \">\r\n                                                            <div style=\"font-size:10px;text-align:center;color:#cccccc;\">Advertisement<\/div>\r\n\t\t\t\t\t\t\t<a target=\"_blank\" href=\"http:\/\/www.accessbankplc.com\" rel=\"nofollow\"><img decoding=\"async\" height=\"auto\" max-width=\"100%\" src=\"https:\/\/nationalwire.com.ng\/wp-content\/uploads\/2019\/06\/Banner-1.jpg\"><\/a>\r\n                                                                        \r\n\t\t\t\t\t\t\t<\/div><!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>***Rating Agency Changes 2020 Outlook For African Banks to Negative\u00a0 Bayo Akinloye The 2020 outlook for African banks has changed to negative from stable, reflecting their weakening operating environment, Moody&#8217;s Investors Service said in a report published today. According to the topmost rating agency, the outlook for African banks in 2020 is negative due to &hellip;<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":9,"featured_media":33924,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[4594,3860,5087],"coauthors":[2387],"class_list":["post-36926","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-news","tag-moodys","tag-nigerian-banks","tag-rating-agency"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Nigerian, S\/African Banks To Face Challenges-Moody`s - 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