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S&P: Nigerian banking at risk
Standard & Poor's said it considers the Nigerian banking sector to be of high risk, as denoted by its Bank Industry Country Risk Assessment ranking.
Similarly ranked banking systems include Costa Rica, Lebanon and Tunisia, the agency noted.
The low ranking of the banking system in Nigeria reflects the high operational and credit risks facing the very young and increasingly competitive banking sector, S&P said.
The agency said that the ranking is supported by the currently favorable macroeconomic environment, which is built upon Nigeria's abundant natural resources and the Tier 1 banking sector's good liquidity, profitability and capitalization.
High operational risks include unstable politics, a weak judiciary system, poor corporate governance, internal security problems and infrastructural deficiencies, S&P added.
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