Access Bank disclosed its exposure to the margin lending that has been plaugeing the Nigerian stock market.
As at 30th September 2008, total stock-collateralised margin loans from Access bank to investors and brokers stood at N55.695bn ($476.0m). That is 8.6% of total
assets and 18.4% of total loans. The bank claims the value of collateral against these loans exceeded exposure, giving them a coverage ratio of 125%.
Makes you wonder what the systemic Nigerian exposure is when Access bank claim they are conservative. No wonder the maket has been falling. Could easily be $10bn on margin loans!
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