Global Credit upgrades Law Union’s rating to A-
Global Credit Rating of South Africa has upgraded Law Union and Rock Insurance Plc’s rating to A- from BBB+ with a stable outlook.
A statement on Sunday said this implied that Law Union had high claims paying ability, relative to other issuers or obligations in Nigeria.
It said, “This rating reflects Law Union’s strong risk adjusted capitalisation, underpinned by a sizeable capital base catering for the quantum of insurance and market risk exposures.
It means that the company’s capitalisation is likely to remain within a strong range over the rating horizon, supported by sound internal capital generation.
Sterling, BoI partner on N140b empowerment deal
Sterling Bank PLC is partnering Bank of Industry (BOI) for the pilot phase of the N140 billion Government Enterprise Empowerment Programme (GEEP) to support micro business owners, such as market women, traders, artisans and farmers to grow their businesses.
The programme is targeted at over 16 million beneficiaries to foster financial inclusion and economic activity at the micro level. There are indications that the appointment of the bank may have been informed by its commitment to serving this segment of the population via its Agent Banking Scheme.
Agent Banking is a process of providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/ cashier. It is the owner of an outlet who conducts banking transactions on behalf of a bank.
Under the pilot phase, Sterling Bank would disburse loans ranging from N10,000 to N100,000 per beneficiary covering up to 15,000 beneficiaries. Target beneficiaries include market sellers and traders, artisans, enterprising youths and farmers.
It would be recalled that Sterling Bank was the first financial institution to kick-off the financial inclusion and Agent Banking initiative in 2014 at Makoko, a Lagos suburb.
Tighten the Noose on Credit Risk, CBN Tells Banks
Ahead of the May 2017 implementation of the International Financial Reporting Standards (IFRS) 9, the Central Bank of Nigeria (CBN) has said it expects banks to put in place policies and systems, as well as governance arrangements and controls to identify where their exposure to debtors have suffered a significant increase in credit risk.
The central bank stated this in its “Guidance Note to Banks and Discount Houses on the Implementation of IFRS 9 (Financial Instruments) in Nigeria”, signed by its Director, Banking Supervision, Mrs. Tokunbo Martins.