Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-The Nigerian banking industry has been ranked 78 world healthiest; leading the United Kingdom (UK) which came 89 out of 144 countries surveyed, the World Economic Forum (WEF) said in its Global Competitiveness Report 2014-2015.
Apart from the UK banks, Nigerian banks are generally healthy with sound balance sheets more than those of Netherlands, Denmark, Italy and Ghana which were ranked 80, 81, 93 and 97 respectively.
However, Canada emerged top in terms of soundness of banks ranking by WEF, while South Africa came sixth, world financial hub, Switzerland emerged 21st, Japan 33, France 47 and United States 49th position.
This ranking also put South Africa as the country ranking the number one healthiest banking industry in Africa.
In terms of affordability of financial services for businesses, Nigeria ranked 122 position, South Africa 21, Mauritius 40, Namibia 49, Rwanda 56, Kenya 64, Ghana 97 respectively, while world financial hub, Switzerland emerged in the first position, Canada 8th, US 10th and the UK 19th.
On ease of access to loans from banks with only a good business plan and no collateral, Nigeria emerged 137 out of the 144 nations surveyed; Mauritius and South Africa, Kenya, and Ghana came 31 32, 33 and 58 respectively.
However, Qatar, Malaysia and the United Arab Emirate came first, second and third countries respectively with ease of access to loans to do business.
The WEF report on countries whose banks are sound is coming on the heels of reports that banks in Nigeria have been shoring up their capital base in recent times as the sector in the review period adopts new international capital requirements.
Diamond Bank Plc just concluded a N50. 3 billion rights issue prior to this time, the lender has issued a $200 million Eurobond in May. Stanbic IBTC Bank is seeking to raise N30 billion to increase its capital base.
Access Bank Plc which raised $400 million in Eurobond in June of this year is seeking to raise N60- N70 billion by the fourth quarter (Q4) of 2014 to shore up its capital base as well and meet up international standards.
