Nigeria Financial Service and Industry.pdf

Nigeria Financial Service and Industry Temitope Osanyintuyi Learning Objectives At the end of the course, participants will be able to: describe the major components of a financial system; enumerate the various operators in the Nigerian financial services industry and their functions...

Nigeria Financial Service and Industry Temitope Osanyintuyi Learning Objectives At the end of the course, participants will be able to: describe the major components of a financial system; enumerate the various operators in the Nigerian financial services industry and their functions; state the major mandates of the regulatory institutions in the Nigerian financial sector; and Highlight aspects of the recent performance of DMBs in Nigeria Introduction to the Financial System Concept of Financial System Components Roles and Functions Concept of Financial System The Financial System comprises two words: Financial & System. Financial (generally has to do with money and finance) A system is a (complex) structure of functionally interrelated or interdependent components that synergize to deliver a unique purpose of existence, Concept of Financial System… A nation’s local financial system is a The surplus economic entities pool of institutional as well as other include individuals, groups or arrangements that transfer savings organizations functioning inside the from persons that create them to economy that have excess funds persons who eventually utilize them more than their urgent needs. They for productive activities such as make up the suppliers of surplus investments or for expenditure. cash to the financial system. It is anchored on the principle that The deficit economic entities are economic agents are classified into those that have inadequate funds surplus and deficit economic and therefore need borrowing to entities. finance their operations. They are the users of the additional or excess cash supplied by the surplus spending entities in the financial system. Concept of Financial System… The process of financial intermediation comprises of savers lending to intermediaries, who in turn lend to firms as well as other fund utilization units. Concept of Financial System… The financial system (FS) consists of It is System coordinated by a institutional units (such as a set of rules and regulations and households, corporations, or the aggregation of financial government agencies) and markets that arrangements, institutions, interact, typically in a complex manner, agents, that interact with each for the purpose of mobilizing funds for other and the rest of the world investment and providing facilities, to foster economic growth and including payment systems, for the development of a nation financing of commercial activity (IMF). (Central Bank of Nigeria (CBN), 1993)  Financial System (FS) Structure of a Financial System Internal FS External FS Informal FS Domestic Formal FS Markets Institutions Instrument Infrastructure Regulators s Depository Non-Depository Payment & Legal Property Security Settlement System Right Exchange System Capital Money Short Medium Long Term Term Term International Domestic Debt Equities Derivatives Primary Secondary Int’l Bank of World Monetary Int’l Bank Fund Settlement Primary Secondary Ministry Security Central of Exchange Banks Finance Commission  Defining Characteristics: Components Intermediaries such as banks, brokerage firms and Institutions insurance companies which act as principals in assuming liabilities and acquiring claims Financial structure: Debts, Equities, Derivatives Instruments Maturities: Short Term, Medium Term, Long term Money market; Equties market; fixed interest securities, Markets Foreign currencies; Commodities; derivative contracts The mechanisms that provide contractual certainty, & generate and verify Infrastructure the information need for efficient financial intermediation Securities Exchanges; Payment and Settlement systems; Local: Central Banks, Deposit Insurance, Capital Market (Security Exchange) Regulators, Pension Funds Regulators etc. Regulators International: International Monetary Fund, IMF; World Bank, Bank of International Settlements (BIS) Institutions Institutions are the organisations that operate in the financial system. They include the financial intermediaries like banks, insurance companies, payment processors, etc they may be private or public sector institutions Regulators are government organisations that supervise and regulate the activities of other institutions (operators) in the financial system. They determine the rules of operation of other institutions Markets Markets: these are the marketplaces where buyers and sellers trade in financial instruments / securities Financial markets create securities products that provide a return for those with excess funds (investors/lenders) and make these funds available to those needing additional money (borrowers). Various Markets exist: Money market OTC (Over the Counter) Market Stock (Equities) market Primary Market Bond Markets Secondary Market Forex market Commodities market Derivatives Market Markets… Money Markets Typically, the money markets trade in products with highly liquid short-term maturities (less than one year) and are characterized by a high degree of safety and a relatively lower interest return than other markets. Money markets instruments include bank accounts, including term certificates of deposit; interbank loans (loans between banks); money market mutual funds; commercial paper; Treasury bills; and securities lending and repurchase agreements (repos). Markets… Stock Markets These are venues where companies list their shares, which are bought and sold by traders and investors. Stock markets, or equities markets, are used by companies to raise capital and by investors to search for returns. Stocks may be traded on listed exchanges, such as the Nigeria Exchange Group (NGX), New York Stock Exchange (NYSE), Nasdaq, or the over-the- counter (OTC) market Markets… Bond Markets A bond is a security in which an investor loans money for a defined period at a pre-established interest rate. Bonds are issued by corporations as well as by governments to finance projects and operations. Forex Market The forex (foreign exchange) market is where participants can buy, sell, hedge, and speculate on the exchange rates between currency pairs Markets… Commodities Markets Commodities markets are venues where producers and consumers meet to exchange physical commodities such as agricultural products (e.g., corn, livestock, soybeans), precious metals (gold, silver, platinum), or "soft" commodities (such as cotton, coffee, and sugar). Derivatives Markets A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset (like a security) or set of assets (like an index). Rather than trading stocks directly, a derivatives market trades in futures and options contracts and other advanced financial products that derive their value from underlying instruments like bonds, commodities, currencies, interest rates, market indexes, and stocks. Markets… Over-the-counter (OTC) markets These are those in which participants trade directly, without a central exchange or other third party. OTC markets allow investors to trade stocks, bonds, derivatives, and other financial instruments directly between two parties without the supervision of a formal exchange. Cash or Spot Market This is where trading of financial instruments or commodities in a public financial market for immediate delivery takes place. This market is in contrast with the futures market where delivery is done in a later or future date. Markets… Primary market: this market is part of the financial market involved in the issuance of new securities. Secondary market: also called aftermarket. This is a market where previously issued financial instruments are traded. These instruments include bonds, options, stocks, futures Instruments Financial instruments are assets that can be traded or exchanged. Some examples of financial instruments include stock shares, exchange-traded funds (ETFs), bonds, certificates of deposit (CDs), mutual funds, loans, and derivatives contracts Financial instruments can be real or virtual documents representing a legal agreement involving any kind of monetary value. Equity-based financial instruments represent ownership of an asset, e.g shares Debt-based financial instruments represent a loan made by an investor to the owner of the asset, e.g treasury bills, commercial papers Instruments… Insurance policies are not considered securities, but they could be viewed as an alternative type of financial instrument because they confer a claim and certain rights to the policyholder and obligations to the insurer. An insurance policy is a legally binding contract established with the insurance company and policy owner that provides monetary benefits if certain conditions are met (such as death in the case of life insurance). Financial Infrastructure The financial infrastructure is a core part of the financial system and is a precondition of its functioning. The financial infrastructure is made up of technical systems (tools and technologies) through which payments are made and transactions with financial instruments are handled. Examples include the Nigeria Interbank Settlement System (NIBSS), Interswitch, etc. They determine the efficiency of intermediation, the ability of lenders to evaluate risk and of borrowers to obtain credit, insurance and other financial products at competitive terms.  Functions and Roles of a Financial System Preferred (Intended) Functions Unintended Functions Direct Function Overall Purpose i. Mobilize SavingsMarkets… i. Economic i. Fraud/E-theft ii. Allocate Resources ii. Money Laundering iii. Exert corporate Growth and Development iii. Terrorism Control iv. Facilitate risk through: Financing Management ii. Capital iv. Other illegal v. Ease trading of Accumulation & financial activities goods, services, contracts (Payment Technological System) Innovation  Presidency The Nigerian Financial System Central Bank of Nigeria Federal Ministry of Finance Specialized DFIs Nigeria Deposit Security and Exchange National Insurance Pencom Insurance Company Commission Commission Nigerian Stock Exchange Insurance Insurance NEXIM FMBN NACROB BOI UDB Brokers loss Reinsurance companies Adjusters Finance Registrars Insurance Pension Pension Bureaux PMIs DMBs Discount Commun Fund Fund Compani Brokers de Houses ity Banks Administra Custodians es Issuing house Change tors Source: CBN (2017) The Financial Services Sector / Industry Financial Services Participants in the Nigerian Financial Services Sector Financial Services A financial service is defined as the transaction performed by which an individual or business obtains a financial good (Asmundson, 2011). Financial services are economic services made available by the finance industry / sector The economy is made up of many different segments called sectors. These sectors are comprised of different businesses that provide goods and services to consumers. The variety of services offered by lending institutions, brokerage firms, and other businesses are collectively referred to as the financial services sector. Participants in the Nigerian Financial Services Sector Financial Institutions - Front-line ▪ The Private Sector Financial Firms (Operators) ❖Money Market Financial Firms - Deposit Money Banks, Primary Mortgage Banks, Microfinance Banks ❖Capital Market Financial Firms – Stock Brokerages, Insurance Companies, Pension Fund Admins/Custodians ▪ The Public Sector (Government) Firms – DFIs (Bank of Industry, Bank of Agriculture, NEXIM, etc.) ▪ The Regulatory and Supervisory Authorities - Central Bank, NDIC, PENCOM, SEC, NAICOM Non-Financial Institutions - Latent (The real sector) ▪ Households - Mainly Suppliers of Funds ▪ Non-Financial Firms - Mainly Users of Funds ❖ (Sector drivers (primary, secondary, and tertiary (non-financial) sector)) Banking Services Banking Services The banking industry is the foundation of the financial services group. It is most concerned with direct saving and lending, while the financial services sector incorporates investments, insurance, the redistribution of risk, and other financial activities. Banks earn revenue primarily on the difference in the interest rates charged for credit accounts and the rates paid to depositors. They also earn revenue through fees and commissions, and holdings of financial instruments Private Sector Banking Industry Operators Deposit Money Banks: Financial intermediaries that transfer surplus money from to savers (lenders) to investors (borrowers) for productive investment to promote sustainable economic performance and facilitate a vibrant real sector: Functions: Accepting deposits, ii. Granting of business loans, iii. Basic investment products like savings accounts and time deposit; iv. Payment Services Private Sector Banking Industry Operators… Structure 35 Deposit Money Banks (DMBs) (26 Commercial Banks, 5 Merchant Banks, 4 Non-Interest Banks) as at May, 2024. Commercial Banks offer account services and credit products to individuals and large and small businesses Merchant Banks conduct underwriting, loan services, financial advising, and fundraising services for large corporations and high-net-worth individuals (HNWI). Microfinance Banks (MFBs) provide financial services such as savings and deposits, loans, domestic fund transfers to economically active low-income earners, low income households, the unbanked and under-served people, in particular, vulnerable groups. There are 721 licensed micro-finance banks (MFBs Private Sector Banking Industry Operators… Primary Mortgage Banks (PMBs): Any company that is licensed to provide mortgage services in Nigeria. Functions: Granting of loans or advances to any person for the Performing estate management duties; Offering project consultancy services for estate development Engaging in estate development through loan syndication Embarking in property trading including land acquisition and disposal. Structure of the PMBs: 32 PMBs in operation Private Sector Banking Industry Operators… Payment Service Banks: Deposit-taking financial institutions that leverage on mobile and digital technologies and services to provided limited CBN-described financial services such as high volume low- value remittance services, micro-savings and withdrawal services to customers, mostly resident in the rural areas, in promotion of financial inclusion drives of monetary and financial authorities in Nigeria. Functions: i. Deliver financial services from mostly rural and unbanked locations ii. Establish ATMs in the said areas iii. Liberty to operate through banking agents iv. Use electronic channels to render services Structure: 4 PSBs (Hope PSB, Money Master PSB, 9PSB and MOMO) Private Sector Banking Industry Operators… Mobile Money Operators (MMOs): These comprise corporate bodies and their agents, which leverage mobile phone technology to deliver many financial services to people, especially the unbanked in rural areas. They are encouraged and regulated by the financial authorities to promote financial inclusion in Nigeria. They generate revenue through transaction charges such as POS services Functions: i. Deliver financial services from mostly rural and unbanked locations, ii. Leverage on mobile phone technology to enhance financial inclusion. Structure: There are 17 non-bank led MMOs Private Sector Non-Bank Financial Institutions Finance Companies: Non-bank financial intermediaries operating as middle-tier financial institutions which provide financial services to individual consumers and to industrial, commercial, or agricultural enterprises in the Micro, Small and Medium Enterprises (MSMEs) segment (CBN, 2014) Functions: Consumer Loans ii. Fund Management iii. Asset Finance iv. Project Finance v. Local and International Finance (LPO & Import and Export Finance) vi Debt Factoring vii. Debt Factorization viii. Financing Consultancy ix Loan Syndication x. Warehouse Receipt Finance Structure: There are about 100 licensed FCs in Nigeria Private Sector Non-Bank Financial Institutions… Bureau De Change [BDC]: companies that are licensed to carry out small scale foreign exchange service in Nigeria and whose sole object is the carrying on of such business on a stand alone basis. Functions: i. Dealing in bank notes, coins, ii. Buying and selling of Traveller’s cheques and iii. Such other businesses as the CBN may approve from time to time Structure: There are over 2500 BDC all over the country Private Sector Non-Bank Financial Institutions… Discount Houses (DHs): A registered company in Nigeria with the business of trading in and holding of treasury bills, commercial bills and other securities and whose operations are in the opinion of the CBN those of a discount house Functions: i. Promote rapid growth and efficiency of the money market in Nigeria ii. Act as an intermediary between the Central Bank of Nigeria and the licensed banks in OMO transactions and other eligible securities of not more than three years maturity iii. Facilitate the issue and sale of short-term government securities and other eligible short- term commercial bills iv. Provide discount/re-discount facilities for treasury securities and other eligible financial instruments. Structure: There are 5 licensed DHs in Nigeria Private Sector Non-Bank Financial Institutions… Holding Companies (HCs): A HC is a financial holding company is a company whose principal object includes the business of a holding company set up for the purpose of making and managing (for its own account) equity investment in two or more companies, being its subsidiaries, engaged in the provision of financial services, one of which must be a bank. Functions: Provide shared services to its subsidiaries within the group in respect of: i. Human Resources policy; ii. Risk Management policy; iii. Internal Control policy; iv. Compliance policy; v. Information and Communication Technology; vi. Facilities (Office Accommodation including Electricity, Security and Cleaning Services in that accommodation) vii. Strategy; Structure: 7 HCs including FBN Holdings PLC; FCMB Group PLC; Stanbic IBTC Holdings PLC Public Sector Financial Institutions (Operators) Specialised Development Finance Institutions (DFIs) These are public sector (government) firms set up to provide credit and other financial services for specific sectors as a means of boosting their economic performers and improving access to credit Public Sector Financial Institutions (Operators)… Bank of Industry (BOI) Description: The largest and most successful development financing institution in Nigeria established in 2001 with a capital base of N250 billion. Functions: Effectively carry out its primary mandate of providing long term financing to the industrial sector of the Nigerian economy, with the objectives of increasing output, generating employment, diversifying the revenue base, increasing foreign exchange earnings and providing inputs for the industrial sector on a sustainable basis Public Sector Financial Institutions (Operators)… Bank of Agriculture Was incorporated as Nigerian Agricultural Bank (NAB) in 1972 and became operational in 1973 Provision of credit to support Agricultural and Non-Agricultural value chain activities Capacity Development through promotion of co-operatives, agricultural information system, and the provision of technical and extension services Provision of opportunity for self-employment in rural areas, thereby reducing rural-urban migration. Provision of Financial Inclusion services. Public Sector Financial Institutions (Operators)… Other DFIs include: Federal Mortgage Bank of Nigeria (FMBN) - provides long-term credit facilities to mortgage institutions in Nigeria and operates the National Housing Fund Nigeria Export-Import Bank (NEXIM): Development Bank of Nigeria (DBN) The Infrastructure Bank Capital Market Operators Securities dealers/Stock brokers/Sub- brokers - Major players (intermediaries) in both the primary market where new issues of securities are traded and in the secondary market where holders of securities exchange them for cash considerations Issuing Houses - act as the lead manager or co-manager for issuance of securities and provide financial and or transaction advisory services for mergers and acquisitions, business combinations and issuance of securities. Banks may serve as issuing houses Capital Market Operators… Registrars/Transfer agents - Registrars in Nigeria are the keepers of shareholder records and act as intermediaries between investors and companies. They diligently perform a range of functions, including: Share registration - maintaining accurate records of shareholders for companies listed on the Nigerian Stock Exchange. Share Transfers - if shareholders wish to transfer their shares to another party, they need to work with the registrar to facilitate the transfer Communication with Shareholders - serve as a communication channel between companies and their shareholders. They provide information on corporate actions, such as annual general meetings, dividend declarations, etc Capital Market Operators… Trustees – corporate trustees represent the interest of bond holders, unit holders in collective investment schemes to ensure they are paid when due and terms are met Collective investment schemes such as unit trusts / mutual funds – schemes and investment companies that invite members of the public to invest money or other assets in a portfolio. Reporting Accountants Solicitors Investment Advisers etc. Capital Market Operators… Exchanges - organization, association, or group of persons that: brings together orders for securities of multiple buyers and sellers; and uses established, non-discretionary methods (whether by providing a trading facility or by setting rules) under which such orders interact with each other, and through which the buyers and sellers entering such orders agree to the terms of a trade. Securities/Commodity Exchanges/Capital Trade Points Futures, Options and Derivatives Exchanges Depository, Clearing and Settlement agencies Insurance Industry Operators Insurance Companies are companies that pool and manage risks on behalf of their customers with the objective of protecting them from the insured risks. Structure: about 70 in various categories such as General, Composite, Life, Takaful, Reinsurance and Microinsurance 6,637 intermediaries including brokers Functions: Selling insurance policies Collecting premiums Paying compensations to customers in event of the occurrence of the insured risks Suppliers of long term fund to the capital market through investment of premium collected. Pension Industry Operators The Pension Companies/Operators – PFAs/PFCs: Any company involved in mobilizing long term savings for matched duration-investment for the purpose of ensuring retirees receive their benefits when due. Structure of the PFAs: 22 Pension Fund Administrators (PFAs), 4 Pension Fund Custodians (PFCs) Functions: PFA open Retirement Savings Account (RSA) for employees, Invest and manage pension fund assets, Payment of retirement benefits and accounting for all transactions relating to the pension funds under their management, PFCs receive pension contributions on behalf of PFAs, Settle transactions and undertake activities relating to the administration of pension fund investments on behalf of PFAs and, Notify the PFA within 24 hours of the receipt. Regulatory Institutions The Central Bank of Nigeria The Central Bank of Nigeria (CBN) regulates banks (which are authorized to take deposits from the public). Since 1991, it has been regulating other professional lenders and providers of financing and foreign currency as principals (known as “other financial institutions”). More recently, the CBN has also been regulating electronic payments services providers As with banks, there are various licences and minimum capital requirements for the various classes of other financial institutions and payment services providers. The Central Bank of Nigeria… It is responsible for administering the Banks and Other Financial Institutions Act (BOFIA) 2020 Its mandate covers: Regulating and supervising all DMBs, PMBs, MFBs, Finance Companies, Discount Houses, Bureau De Change, and other Financial Institutions Formulation and implementation of monetary policies to achieve set of macroeconomic objectives of the Government e.g. price stability, economic growth, full employment, balance of payment equilibrium The Central Bank of Nigeria… The CBN performs several functions in the financial sector including: Issuing legal tender currency in Nigeria; Serve as banker and offer economic and financial advice to the federal government; Lender of last resort to banks by loaning them in the form of credit when they are unable to obtain funds from other sources; Custodian of Cash Reserves of Commercial Banks; Encouraging a sound financial system in Nigeria; and Bank of Central Clearance, Settlement, and Transfer: by puuting a clearing house under it, the CBN assists in resolving common indebtedness amongst commercial banks. Nigeria Deposit Insurance Corporation (NDIC) Established in 1988 and started operation in 1989, the NDIC is jointly held by the Federal Ministry of Finance and the Central Bank of Nigeria, and has the following mandates: Deposit Guarantee: as its primary and unique mandate NDIC discharged this role through the payment of insured sum to depositors of closed insured financial institutions. NDIC insures deposits in all deposit-taking financial institutions licensed by the Central Bank of Nigeria such as Universal Banks, Microfinance Banks, Non interest Banks and Primary Mortgage Institutions. Bank Supervision: NDIC monitor the financial health of insured financial institutions (DMBs, PMBs and MFBs) through both On-site Examination and Off-site Surveillance to ensure and sustain public confidence and take prompt corrective actions where necessary. Nigeria Deposit Insurance Corporation (NDIC)… Failure Resolution: the NDIC provides technical and financial assistance to distressed banks to restore their financial health and contributions to the systemic financial stability, where possible. Other resolution mechanisms deployed to perform this role include: merger and acquisition, purchase and assumptions, bridge banks method, hold action, and management take-over. Bank Liquidation: the NDIC as the official liquidator of failed insured institutions, the NDIC ensure effective and orderly closure of the affected failed banks and prompt reimbursement to their depositors. Security and Exchange Commission (SEC) Established in 1979, SEC is the apex regulatory authority in the Capital Market. Guided by the Investment and Securities Act Functions: Examine applications from companies seeking to raise capital from the capital market, Recommend the timing of such issues to prevent issues clustering which could overstretch the market’s capacity, Determine the prices of issues and setting the basis for allotment of securities. National Insurance Commission (NAICOM) Established in 1997 to ensure the effective administration, supervision and regulation of insurance business in Nigeria. Functions: Regulate transactions between insurers and reinsurers within and outside Nigeria. Determines and approves the rates for premiums and commissions in the insurance industry Protects policy holders and other beneficiaries of insurance contracts The National Pension Commission (PENCOM) PENCOM was established to supervise, coordinate, regulate and control the efficient and effective administration of pension matters in Nigeria. Functions: Regulate and supervise the Pension Scheme and provide guidelines for the pension funds operation, License pension fund administrators, supervising custodians and other institutions dealing with pension matters, Provide a database for all pension matters, Educate the public on pension related issues and how the scheme is managed. Financial Service Industry Indicators Sector Size and Growth Performance Indicators for DMBs  The financial services industry is crucial to the performance of any economy as it facilitates the efficient conduct of trade, production, investment and consumption activities As a result of its importance to economic activity, it is often a highly regulated industry with the aims of ensuring stability, efficiency, competitiveness, flexibility and balance (an optimal blend of numerous kinds of financial systems). Financial indicators provide an idea of the size, level of development and health of the financial services industry Sector Size and Growth The Financial Sector is divided into two sub-sectors for the purpose of GDP computation - Financial Institutions, and Insurance, in which the former accounted for 91.89% and the latter 8.11% of the sector respectively in real terms in Q2 2024. Sector accounted for N8.59 trillion (or 3.74%) of a total nominal GDP of N229.91 trillion in 2023 In Real GDP terms, the sector contributed N3.81 trillion (4.97%) of total Real GDP of N76.68 trillion Sector Size and Growth… It is one of the fast-growing sectors of the economy, with growth rates above 20% Real GDP growth (%) 2023 2024 Q1 Q2 Q3 Q4 Total Q1 Q2 FINANCIAL AND INSURANCE 21.37 26.84 28.21 29.78 26.53 31.24 28.79 Financial Institutions 24.96 29.23 29.66 31.44 28.86 33.30 30.37 Insurance - 8.01 7.31 15.21 8.27 4.82 8.34 13.30 Performance Indicators of DMB in Q4, 2023 There were 36 licensed Deposit Money Banks (DMBs) as at December 31, 2023, of which 26 were Commercial, six (6) Merchant and four (4) Non-Interest Banks (NIBs). Total Assets of the 36 DMBs stood at ₦113,862.17 billion Total liabilities, which stood at ₦113,862.17 billion as at end- December 2023. Shareholders’ Funds grew by ₦532.66 billion (8.60%) from ₦6,196.52 billion at the end of the third quarter of 2023 to ₦6,729.09 billion at the end of the fourth quarter of 2023. Performance Indicators of DMB in Q4, 2023… The Capital Adequacy Ratio (CAR) of the DMBs increased by 23 basis points from 12.90 per cent as at September 30, 2023, to 13.13 per cent as at December 31, 2023 DMBs’ Total Credit grew by ₦5,444.17 billion (13.77%) from ₦39,544.79 billion as at September 30, 2023, to ₦44,988.97 billion as at December 31, 2023. Out of the this, the sum of ₦1,814.85 billion was impaired, resulting in an Impaired Credits to Total Credits Ratio of 4.03 per cent as at December 31, 2023, compared with 4.36 per cent as at September 30, 2023 Performance Indicators of DMB in Q4, 2023…  Thank You Sources: Ibrahim Alley (2020). Overview of the Nigerian Financial System. A lecture for the NDIC Capacity development programme for EFCC operatives Imoisi, A.I and G.A. Adesina-Uthman (n.d) Course Material for ECO 724: Nigerian Financial System. National Open University of Nigeria (NOUN)