By BUUMBA CHIMBULUCOVID-19 modified loans for the banking industry last year hit over K3 billion, thereby threatening the sector’s capital adequacy which is currently stable, the bankers have said.The sector’s capital adequacy position between January and September 2021 remained under threat of the high stock of Covid-19 modified loans K3.01 billion, says Bankers Association of Zambia (BAZ) Public Relations Officer, MirriamZimba.She explained that if materialised into Non-Performing Loans (NPL) and a full loan loss provision is taken could weaken the Primary Capital Adequacy Ratio and the Total Regulatory Capital Adequacy to 16.9 percent and 18.5 percent respectively.“The Covid-19 continues to pose serious health and economic challenges, with the new variant and threat of a fourth wave. The negative impact of the pandemic on our economy and economic recovery cannot be over-emphasised,” Ms Zimba said in response to a press query.Ms Zimba however said asset quality was rated satisfactory as the NPL ratio dropped to 6.9 percent and remained within the prudential […]
COVID-19 modified loans hit over K3 billion
