Shock as banks record huge profit amidst gloomy economy

Oct. 7, 2024 - Vanguard

The policies are liberalization of the foreign exchange market and a hawkish interest rate regime. MPR is the benchmark interest rate upon which other interest rates in the money market are built.

But interest income for the banks is surging at the backdrop of the CBN’s current interest rate regime. While high interest rates can attract foreign investment and combat inflation, they can also stifle domestic economic activity.

Asset yields will also benefit from most loans being variable-rate, enabling upward repricing in response to rising interest rates...