The Nigeria Deposit Insurance Corporation has identified emerging risks facing Islamic banks in the country.
The risks, according to the NDIC Managing Director and CEO, Umaru Ibrahim, include underlying structural economic weaknesses, inflationary trends and depreciating currencies.
Umaru said all these could potentially destabilise liquidity, raise non-performing financing and erode capital.
He disclosed this yesterday in Abuja at a conference on sustainable Islamic finance in Nigeria.
He, however, noted that non-interest banking was gaining traction as the total assets of non-interest banks stood at N186.46bn as at the end of June 30, 2019 from N66.96bn in 2015.
The assets represent 0.49 percent the total banking assets in Nigeria. The Managing Director of Jaiz Bank Plc, Hassan Usman, appealed to regulators, including the Central Bank of Nigeria, to create Sharia Compliance Liquidity Management Instrument for non-interest banks to invest in.
Source: Dailytrust
