Regulatory Alerts2007-06-27 | OFID-06-2007Prudential Ratios for Microfinance Banks
As of 30 September, 2006, the company's balance sheet consisted primarily of cash and cash equivalents, loans and advances, fixed assets, and other assets. The majority of these assets were either classified as non-risk assets or unquoted investments, with a limited amount of risk assets such as commercial real estate loans and commercial papers. The company also had certain contingent liabilities. The capital adequacy ratio based on the total qualifying capital and risk-weighted assets was not computable (#VALUE!). Additionally, it appears that there might have been an unspecified need for recapitalization at that time.
| CAPITAL ADEQUACY COMPUTATION AS AT 30TH SEPTEMBER, 2006 | |||||
|---|---|---|---|---|---|
| S/N | TYPE OF ASSET | NET VALUE OF ASSET N WEIGHT OF | AMOUNT OF | ||
| RISK | % | RISK ASSET N | |||
| 1 CASH IN HAND | 0 | 0 | - | ||
| 2 CASH RESERVE WITH CBN | 0 | 0 | - | ||
| 3 BALANCE HELD WITH: | - | ||||
| (I) OTHER BANKS IN | XXX | 20 | #VALUE! | ||
| NIGERIA | 20 | - | |||
| (II) OTHER BANKS | |||||
| OUTSIDE NIGERIA (INCLUDING FOREIGN CURRENCIES HEL D) FEDERAL GOVERNMENT | - | ||||
| STOCK | |||||
| 4 UNCLEARED EFFECTS | - | 20 | - | ||
| 5 TREASURY CERTIFICATES | 0 | 0 | - | ||
| 6 TREASURY BILLS | X | 0 | #VALUE! | ||
| 7 NEGOTIABLE CERT. OF | 50 | - | |||
| DEPOSIT | |||||
| 8 NON-NEGOTIABLE CERT. OF | - | 100 | - | ||
| DEPOSIT QUOTED INVESTMENTS | - | 100 | - | ||
| 9 UNQUOTED INVESTMENTS | 100 | - | |||
| 10 LOANS AND ADVANCES | - | ||||
| (I) LOANS TO FEDERAL | - | ||||
| GOVERNMENT (II) BANKERS' ACCEPTANCES | 0 | - | |||
| (III) OWNER OCCUPIER OF | - | 100 | - | ||
| RESIDENTIAL MORTGAGE (IV) PRIVATE SECTOR | 0 | 100 | - | ||
| COMMERCIAL REAL ESTATE (V) OTHER LOANS | XX | 100 | #VALUE! | ||
| (VI) COMMERCIAL PAPERS | 100 | - | |||
| 11 FIXED ASSETS | XX | 100 | #VALUE! | ||
| 12 OTHER ASSETS | XXX | 100 | #VALUE! | ||
| 13 CONTRA ITEMS | 100 | - | |||
| 14 CONTINGENT LIABILITIES | 20 | - | |||
| TOTAL AMOUNT OF RISK | 0 | #VALUE! | |||
| ASSETS 1 ST TIER CAPITAL | |||||
| (A) PAID-UP CAPITAL | #VALUE! | ||||
| (B) STATUTORY RESERVE | X | 2 ND TIER CAPITAL (A) LOAN STOCK OF A (B) DEBENTURE (C) BANK'S LOAN LOSS LESS: (D) INVESTMENTS IN UNCONSOLIDATED SUBSIDIARIES & ASSOCIATES TOTAL 2ND TIER CAPITAL | |||
| (C) GENERAL RESERVE | X | ||||
| (D) PUBLISHED P & L A/C | X | ||||
| LESS: (E) GOODWILL AND INTANGIBLE ASSETS (F) UNDER PROVISION | 0 | ||||
| (G) REQUIRED LOAN LOSS | |||||
| RESERVE TOTAL 1ST TIER CAPITAL | #VALUE! |
| RISK WEIGHTED ASSET RATIO: TOTAL QUALIFYING CAPITAL (1 #VALUE! TOTAL AMOUNT OF RISK ASSET (B) #VALUE! CAPITAL ADEQUACY RATIO #VALUE! MINIMUM REQUIRED RATIO 10% 10% OF RISK ASSETS #VALUE! EXISTING CAPITAL #VALUE! RECAPITALIZATION REQUIRED #VALUE! |
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