Categories: Nigeria News

Zenith Bank in trouble as Capital Adequacy Ratio falls below mandated threshold

Zenith Bank Plc is facing additional challenges in the wake of its failure to meet the required Capital Adequacy Ratio (CAR).

Concerns are intensifying within the financial sector, as recent findings from a stress test conducted by the Central Bank of Nigeria (CBN) reveal that GTBank, along with seven other prominent Nigerian banks—Access Bank Plc, Fidelity Bank Plc, First City Monument Bank Limited, First Bank of Nigeria Limited, Union Bank of Nigeria Plc, United Bank for Africa Plc, and Zenith Bank Plc—have also fallen short of the mandated CAR.

This revelation coincides with the CBN’s contemplation of a potential new round of bank recapitalization, a matter previously reported

Notably, in September 2021, the CBN had issued guidelines stipulating a prudential Capital Adequacy Ratio of 10 percent for National and Regional Banks, while banks with international authorization were obligated to maintain a 15 percent regulatory Capital Adequacy Ratio.

The recent report underscores a significant decline in the overall Capital Adequacy Ratio of the banking system, dropping by 3.0 percentage points to 11.2 percent. This figure falls notably below the mandated 15.0 percent threshold set for banks with international authorization.

The downward trend is attributed to the CBN’s review of foreign exchange policies, which initiated the devaluation of the Naira starting from June 14, 2023. GTBank’s failure to meet the CAR requirements adds another layer of complexity to the challenges faced by the bank and emphasizes the urgency for corrective actions to restore confidence in the stability of the Nigerian banking sector.

Treasure Orokpo

A multi-talented individual with a passion for diverse fields, Treasure Orokpo is a trained journalist, skilled cook, and AI enthusiast. When she's not uncovering the latest stories, you can find her whipping up culinary creations in the kitchen and entertainment.

Recent Posts

Who is Equatorial Guinea’s Baltasar Ebang Engonga? – Leaked tapes and more

Baltasar Ebang Engonga, the Director General of Equatorial Guinea’s National Financial Investigation Agency (ANIF), is…

5 hours ago

Download over 300 leaked viral video of Equatorial Guinea’s Baltasar Ebang Engonga

The recent scandal involving Baltasar Ebang Engonga, Equatorial Guinea's financial crime chief, highlights the complexities…

5 hours ago

BREAKING: Tinubu swears in seven new ministers

President Bola Tinubu has officially sworn in seven new ministers during a ceremony held at…

6 hours ago

Watch full leaked video of Equatorial Guinea’s Baltasar Ebang Engonga

Meet Equatorial Guinea Financial Crime's Chief, Baltasar Ebang Engonga, Whose Over '300' S3x tapes With…

6 hours ago

BREAKING: Court acquits Walter Onnoghen, reverses six-year conviction

The Court of Appeal in Abuja has discharged and acquitted former Chief Justice of Nigeria,…

8 hours ago

Leaked Tapes of Equatorial Guinea’s Baltasar Ebang Engonga Surface Online

Baltasar Ebang Engonga, the serving Director General of the National Financial Investigation Agency (ANIF) in…

8 hours ago