The Central Bank of Nigeria (CBN) has conducted stress test, reporting that seven commercial banks failed as they were not inadequate in their funding status.
The financial stability report was signed by CBN Director, Financial Policy and Regulation Department, Kelvin Amugo.
The report on Thursday showed that in the less than 30-day period analysis, seven banks were not adequately funded, while in the 31 to 90-day period, nine banks had funding gaps.
The report, however, said the cumulative position for the industry showed an excess of N4.8 trillion assets over liabilities.
It did not disclose the banks which are among the nation’s 24 banks.
The report, which covered the period ended December 2018, showed that six banks accounted for 82 per cent (N252.00 billion) of total placements and 86 per cent (N 266 billion) of total takings, of which 71 per cent (N190 billion) was provided by the top four placers of funds.
The stress test result revealed that, after a one-day run scenario, the liquidity ratio for the industry declined to 34.69 per cent from the 51.87 per cent pre-shock position and to 17.55 and 13.48 per cent after a five-day and cumulative 30-day scenarios.