Drop in loan growth positive for Nigerian Banks – Fitch

By Omoh Gabriel Fitch Rating Agency,Wednesday,  said that the marked slowdown in loan growth in the Nigerian banking sector has reduced the pressure on asset quality and capital.  A statement on its Website said that “A more pedestrian pace of credit origination helps the banks avoid asset-quality problems and places less strain on capital. The rating Agency in its assessment of the current position of loans in Nigeria Banks said “We expect loan growth to be subdued until (second half of 2013)H213, as the market adjusts to the higher interest rates following the expiration of the inter-bank guarantee from the Central Bank of Nigeria (CBN) last year.