Our view on the Banking industry remains positive as various measures put in place by regulators have ensured the strength of the Nigerian banks. However, Commercial banks are currently the most prepared to take advantage of emerging opportunities in the economy though, we believe their ability is also limited largely due to the tenor of deposits. Hence, there is a need to shore up capacity across other segments of the Nigerian banking industry.
With regards to increasing financial inclusion and capturing more portions of the informal economy, there is the need to boost activities in MFBs given the proximity to MSMEs which make up the larger part of the business environment. For the mortgage banks, while we recognise efforts made by government to increase liquidity to bridge the housing deficit, we note that the current size of the PMBs is a long way from the estimated amount needed to sufficiently bridge the gap.