The Nation Newspaper

Tag: bank

  • JP Morgan: Bank or rating agency?

    Sometime in December 2014, the Central Bank of Nigeria (CBN) introduced some policies to rein-in currency speculation and round-tripping by FOREX dealers, who were in the habit of hoarding foreign currencies to create artificial demand. The CBN took the decision to curb speculative attacks on the Naira by these unscrupulous elements that were bent on taking advantage of the steep dip in global oil prices, and its recent measure to defend the naira and national reserves by exempting 41 items from the forex window. Since then aggrieved local and foreign collaborators have taken up arms against the CBN.

    Only recently, the JP Morgan Index Team in a statement released to selected media groups disclosed its decision to delist Nigeria from its Government Bond Index by the end of October. This is in spite of the fact that Nigeria’s apex bank had, at every turn, explained its policy decisions in line with its code of transparency. Little wonder many analysts see JP Morgan action as either blackmail or disrespect or even both. The reader may want to know: what is JP Morgan, a commercial bank among others, that, its assessment should be taken so seriously? How was Nigeria before 2012? And what is not working in Nigeria that justifies this action?  Do they really have the morals to arrive at that decision? While the World Bank and the IMF, the real managers of economies are laboriously pursuing developmental goals and building institutions around the world, the JP Morgans of this world are busy pursuing selfish commercial interest.  The action veils their real intention, which is purely commercial interest. It is quite obvious that the JP Morgan index team has refused to acknowledge the structure of Nigeria’s peculiar economy cum the strangulating effect of the oil crisis. The investment bank has also refused to respect the actions so far taken by the CBN as necessary at this moment not to allow the economy to crash. What works in a particular country, may not work in another.

    Since the CBN decided not to further devalue its currency, these neo-colonialists and their local collaborators have embarked on tailored-made criticism crafted to suit their commercial interest. Precarious as the situation is, with the federal executive council yet to be constituted to complement the efforts of the apex bank, the CBN has been managing the economy.

    The unreasonable attacks started from The Economist and later Standards and Poors and now JP Morgan, which had earlier given notice, in January, to phase out Nigeria from its Government Bond for Emerging Markets (GBI-EM) for lack of liquidity in the economy. This is nothing but a demonstration of arrogance by the international financial institutions that cares for no one but their selfish interest alone. What really is the concern of the JP Morgan in forex issues, which is global and not peculiar to Nigeria? It had earlier given a target date of December 15, to decide on Nigeria, and therefore the unanswered question is – why the sudden change to September 15? More so that, the bank is known to deal and trade in bonds and this makes clear their interest.

    Yes, we need development partners but not as determinants of our fate. We are peculiar people with rich heritage and intelligence. If I may ask, what have we really benefitted from their so-called economic agenda? If, Nigeria and the CBN have decided to chart a new course for its people, who are the JP Morgans of this world to say otherwise. It is also interesting to note how every financial analyst, commentator, broker, institution, captains of industry and agencies within and outside Nigeria, especially in Europe and North America, is so fixated with Nigeria, and the call for devaluation of the Naira. Quite disheartening too is the fact that some Nigerians, many of whom lack the grasp of what usually plays out in such game as to who stands to lose, if Naira is devalued, have joined the financial blackmail train in piling pressure on the Central Bank to devalue the Naira.

    What product are we exporting that we need to devalue the Naira to create market for? Is it the crude oil that has driven its value underground? Inasmuch as many are at daggers drawn with Godwin Emefiele, the Governor of CBN and his team, every country has to do what it has to do to protect its economic interest, and Nigeria should not be railroaded into a western designed strategy that will end up impoverishing Nigerians and enriching the pocket of investors. If Nigeria succumbs to the blackmail of international financial institutions and uninformed local analysts, the Naira will have a free fall and would not be worth more than what late Ugandan military leader, Idi Amin Dada, referred to as “toilet paper”. And recent was the case of the Zimbabwean dollar. Whoever is calling for the devaluation of the Naira has evil intentions as alluded to in press statement issued by the bank on the wake of the action by JP Morgan.  As the statement said, “doing so would lead to an indeterminate depreciation of the Naira”. The consequence of this is dire, and should be left only to imaginations. Advocates of devaluation are not just what they are, but insensitive to the plight of many Nigerians who spend over 70% of their expendable income on food alone. Further devaluation of the currency will exacerbate the present high inflationary pressure, which will eventually erode whatever little gain the large population of the Nigerian masses, most of whom are already wallowing in abject poverty have, and this may trigger public unrest because of the abnormal high cost of food items that Nigerians are presently experiencing; the very worst time in history.

    With this scenario playing out, the federal government should stop the usual rhetoric about economic diversification which stage we had long passed; rather it should radically diversify its source of income, and forge a strong partnership and collaborate with the monetary authority.

    Let JP Morgan take its index elsewhere, as any promise made of a weaker Naira exchange rate that would promote industrial and economic growth is suspect. Though the CBN policies and its obstinacy to the call for devaluation may look quite unfriendly, but it is about patriotism and responsibility to protect our heritage, the Naira, reduce inflation, create jobs and grow the national reserves.  No responsible country will heed the call for devaluation recommended by JP Morgan, given our economic vulnerability and weak productive base, and allow the Naira to crash to its own death. Supporters of JP Morgan’s misadventure to blackmail Nigeria into unprofitable devaluation to enable its cronies profit should understand that Nigerians are smart and intelligent to see through their selfish desire. Nigerians have resolved to carve a new and profitable course for economic renaissance. What the CBN needs from Nigerians now is support and understanding.

    • Deepak, a social commentator wrote in from Akure
  • Bank makes offers

    Bank makes offers

    Sterling Bank Plc has rolled out various offerings to make going back to school in September a lot easier for all stakeholders.

    The offerings include special gifts for children with the Bank’s I Can Save Account; School fees financing for parents; special training programmes and household equipment finance scheme for teachers; school finance as well as sponsorship of their events.

    Sterling Bank’s Group Head, Strategy & Communications, Mr. Shina Atilola, said gifts for “I Can Save” customers include school bags, raincoats, cultural heritage books, exercise books and other writing materials.

    For parents, Atilola said they would be able to put their wards in school while awaiting salaries and other receivables.

    Personal Financial Management training scheme will be enjoyed by teachers of schools which pay salaries through the bank, in addition to flexible payment plan for household items they buy.

    “Teachers deserve the quality of living that employees in other sectors of the society enjoy. This informed the Bank’s introduction of the Household Equipment Finance. This solution allows teachers and other school workers acquire household equipment like Refrigerating Sets and Television sets amongst other items with flexible repayment options spread over three months at discounted rates.”

    Under the School Finance scheme, schools can access loans to bridge working capital gaps, expand and acquire assets with a tenor of up to 60 months at interest rates lower than the industry benchmark.

    The Bank under the School and Family Events Partnerships  would also provide support in the form of partnership and gift items for schools and other relevant organizations during events such as Inter House Sport Competitions, Children’s Day, Cultural Day, Open Day, Fun Day, PTA meetings and Mother’s/Father’s Day.

  • No benefit in Rand intervention, says SA’s reserve Bank

    The South African Reserve Bank has no intention to defend the currency given the muted impact of a falling rand on inflation and the benefits it provides to Africa’s second-largest economy, Governor Lesetja Kganyago said.

    The currency’s decline is a result of the Chinese slowdown and expected monetary policy normalisation in the U.S., Kganyago said September 5 on the sidelines of a G-20 meeting of central bank governors and finance ministers in Turkey’s capital, Ankara.

    “There is no amount of central bank involvement that would do anything to stop a currency from aligning to what the macroeconomic fundamentals are,” Kganyago said. “We have had a shock to our commodity prices and the currency has depreciated. It just provided a cushion to our export sector.”

    The rand tumbled more than eight per cent since the start of August on concern that prices for commodities, which account for more than half of the nation’s exports, will plunge further as China’s economy slows. While the bank has repeatedly cited a weak currency as the biggest risk to consumer prices, Kganyago played down the feed-through impact, citing the decline in oil prices.

    “What we have seen is that with every episode of the rand’s depreciation, the pass-through from the depreciation of the currency into the inflation rate had been muted and had been lower,” he said. The rand’s depreciation “is also accompanied by the decline in the oil price and the decline in the oil price is disinflationary.”

    The currency weakened less than 0.1 percent to 13.8588 per dollar in Johannesburg on Monday, taking its drop since the start of the year to 17 percent.

    The Reserve Bank raised its benchmark repurchase rate by 25 basis points to six percent in July, the first policy move in a year, to help fight inflation that accelerated to five percent in July. Kganyago said on August 11 that the current tightening cycle would be moderate.

     

     

    The oil-price decline “gives a fillip” to the South African economy through lower energy bills as the nation imports about 70 percent of its crude-oil requirements, the governor said.

    The bank may have to cut its economic growth forecast for this year after the economy contracted by an annualized 1.3 percent in the second quarter, he said. The monetary policy committee said in July that the economy will grow 2 percent this year and 2.1 percent in 2016.

  • Ease of doing business: World Bank ranks Nigeria 170th

    T he World Bank has ranked Nigeria 170th among 189 countries in a survey  on how easy to do business. It shows an improvement of 2.9 per cent on the 175th position the country occupied last year.

    Tagged: Doing Business 2015: Going Beyond Efficiency, report revealed that entrepreneurs in 123 economies saw improvements in their local regulatory framework last year.

    Also, Nigeria was ranked 129th on the ease of starting a business as against 138th last year, while it was ranked 171th on dealing with construction permits, as against 168th. On registering property, it remained 185th as it was the previous year.

    The country, however, improved immensely on access to credit ranking as it moved from 125th last year to 52nd position in the current ranking.

    Nigeria fell by one point on protecting minority investors’ ranking as it moved from the 61st position last year to the 62nd position this year. On paying taxes, Nigeria was ranked 179th as against 177 last year.

    The report showed Singapore as the best country to do business, while Mauritius remained the best in Africa with a ranking of 28th.

    New Zealand emerged second followed by Hong Kong. Denmark, Norway, United States, United Kingdom Finland and Austria were ranked the top 10 countries.

    Haiti, Angola, Venezuela, Afghanistan, Congo DR, Chad South Sudan, Central African Republic, Libya and Eritrea were ranked the top 10 worst places to do business on the planet.

    Between June 2013 and June, last year, the report, which measured 189 economies worldwide, documented 230 business reforms, with 145 reforms aimed at reducing the complexity and cost of complying with business regulation, and 85 reforms aimed at strengthening legal institutions – with sub-Saharan Africa accounting for the largest number of such reforms.

    The yearly World Bank Group Doing Business report analyses regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency.

    The aggregate ease of doing business rankings are based on the distance to frontier scores for 10 topics and covers 189 economies.

    The Word Bank said the distance to frontier score aids in assessing the absolute level of regulatory performance and how it improves over time.

    “This measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. This allows users both to see the gap between a particular economy’s performance and the best performance at any point in time and to assess the absolute change in the economy’s regulatory environment over time as measured by doing business.

    Economies, it added, were ranked on their ease of doing business, from 1–189, adding that a high ease of doing business ranking means the regulatory environment is more conducive for starting and operating local firms.

    “The rankings are determined by sorting the aggregate distance to frontier scores on 10 topics, each consisting of several indicators, giving equal weight to each topic. The rankings for all economies are benchmarked to June 2014,” it added.

  • Food firm, bank quarrel over N1.6b loan

    A confectionery company has gone to court to challenge the claim that it is owing United Bank of Africa (UBA) N1.6 billion.

    In a suit filed at the Lagos High Court, Food Concepts Plc faulted the bank’s claim, accusing it of breaching the terms of a N1.6 billion loan under the Commercial Agricultural Credit Scheme (CACS).

    It said it was shocked by the bank’s publication of its name as “a chronic debtor” in three newspapers when the facility would not expire until next year.

    In the suit filed by Mrs. Omohafe Opara of Rickey Tarfa and Co, Food Concepts is asking the court for a perpetual injunction restraining the bank or the firm’s agents from attaching any of the firm’s assets; restraining the bank from making further malicious publication against it; preventing the bank or its agents from any form of liquidation or receivership and directing the bank to render account of the N1.6billion loan.

    The firm also sought an order compelling UBA to reconcile its accounts in line with the CACS.

    Food Concepts sought the N1.6 billion loan under the CACS  provided by the Central Bank of Nigeria (CBN) to develop a Greenfield Poultry Farm in Abeokuta, the Ogun State capital, as a backward integration initiative under the name of Free Range Farms Limited.

    It said it pledged specific assets as security for the loan (including but not limited to the farm’s assets), adding that as such, its exposure is limited to those specified assets.

    The claimant said it generally complained about delays in the disbursement of the loan, alleging that it discovered irregularities in its accounts with UBA which necessitated a reconciliation.

    It accused the bank of poor handling of the disbursement of the loan, adding that this affected the project’s outcome.

    The claimant said it secured the First City Monument Bank’s commitment to refinance the loan with CBN’s knowledge, claiming that this did not stop UBA from filing a winding up petition.

    “Despite the winding up petition, the bank still went ahead to enter into a Memorandum of Understanding (MoU) with the claimant and FCMB in full liquidation of the outstanding reconciled debt”, Food Concepts alleged.

    It accused the bank of damaging its “credibility and reputation” by publishing its name as a “chronic debtor”, praying the court for N1 billion as general damages and N10 million as costs.

     

  • Keystone Bank gets ISO certifications

    Keystone Bank gets ISO certifications

    Keystone Bank has obtained two certifications from the International Organisation for Standardisation (ISO). The certifications are the ISO 20000 for IT Service Management Systems (ITMS) and ISO 27001 for Information Security System (ISMS).

    The certification attests that the bank aligned with world class standards in protecting customer information and providing stellar services to its stakeholders via efficient and effective use of Information Technology.

    It was issued after a rigorous audit exercise conducted by the British Standard Institute (BSI), in keeping with the lender’s vision to be the preferred partner to its customers via the use of Information Technology.

    According to the Executive Director, Operations & Technology, Mrs. Yvonne Isichei “Keystone Bank is committed to following global best practices and standards in all its operations because we believe our customers should be assured of consistent service delivery, convenience and reliability.

    “These certifications also give our stakeholders increased confidence and confirms the security of information and information technology service at all levels.”

    Mrs. Isichei also said “With this, customers can be assured that we have put processes in place to protect the information that they give us.”

    The British Standard Institute (BSI) recognizes companies that have implemented systems and structures that ensure their operations are in line with international best practices.

  • Turkish club bank on Yakubu’s experience

    Turkish club bank on Yakubu’s experience

    Turkish Super League new boys Kayserispor said they hope the experience of Nigeria striker Yakubu Aiyegbeni will stand them in good stead this season.

    Yakubu signed a year’s deal with an option for an extension and was unveiled by the newly promoted club early this week.

    Kayserispor spokesman Ahmet Yildiz said: “We believe that our new players will contribute a lot to our team. Yakubu Aiyegbeni has proved himself in the Premier League, played 52 times for Nigeria national team and he is a very important player in the national team.”

     

  • ‘Madman’ invades kogi bank

    ‘Madman’ invades kogi bank

    An unidentified young man who was declared insane stormed a first generation bank located along Ganaja road, in Lokoja, the Kogi State capital, damaging two Automated Teller Machines (ATMs).

    The incident which happened during the early hours of Tuesday took many of the bank customers by surprise as the man was mistaken for a robbery suspect out on a mission to rob the ATM.

    The attack by the ‘madman’ rendered the two ATM machines useless and the customers frustrated.

    The branch manager, Mr. Emmanuel declined speaking with the press on the matter, saying he is not in position to comment on such issues.

    An eyewitness said that the incident happened at about 9.30am when a young man stormed the bank with a wooden hammer, in an effort to access in the ATMs.

    Confirming the incident, the Police Public Relations Officer, Collins ‘Sola Adebayor, an Assistant Superintendent of Police (ASP), said the unidentified suspect was shot on the leg.

    He promised to make available details of the incidence as soon as investigation is concluded.

  • Bank customers get CBN’s six-year timeline to lodge complaints

    Bank customers get CBN’s six-year timeline to lodge complaints

    The Central Bank of Nigeria (CBN) has set a six-year time limit within which all transaction-based complaints against financial institutions can be lodged.

    A circular endorsed by its Director, Financial Policy and Regulation, Udofia Obot, addressed to all banks, discount houses and other financial institutions, explained that the new policy became exigent following recent challenges in ensuring timely resolution of complaints from consumers of financial services against banks.

    The circular stressed that the CBN’s consumer protection role had over the years been hampered by “non-availability of, or delays in receiving documentary evidences from both parties.” This, it stressed underscored the need to have a policy on “time bar” for complaints management in the financial services industry.

    “Consequently, the CBN having consulted the relevant stakeholders in the financial services industry, and in line with provisions of limitation legislation; Money Laundering (Prohibition) Act 2013; and CBN Anti-Money Laundering and Counter Financing of Terrorism Regulation for Banks and Other Financial Institutions in Nigeria, 2013, hereby adopts a time limit of six years, effective from the date of the transaction, within which complaints against financial institutions shall be lodged,” it added.

    However, the circular stated that the time limit would not apply to fraud cases; complaints already lodged with the financial institutions and CBN; and international electronic payment transactions which records are not retained beyond 180 days on the dispute resolution application (arbiter). The circular further explained that the latest circular supersedes the earlier circular dated February 16 ths year on the subject matter.

  • Bank chief urges bankers on integrity

    Chartered Institute of Bankers of Nigeria (CIBN) president, Mrs. ‘Debola Osibogun has advised bankers on the need to embrace integrity and best practices in the course of their duties.

    Speaking at the CIBN Graduates Induction and Prize Awards Day held in Lagos, she said bankers would always abide by the CIBN code that condemns gratification and bribery among other unwholesome practices in banking. “I wish to remind you of some of the things contained in the Code of Conduct in the Nigerian Banking Industry recently approved by the Bankers Committee.

    You must endeavour to avoid these if only to ensure that you become the heroes and heroines of your chosen profession.  You must avoid engaging in any ventures of which there are clear issues of conflict of interest; abusing the trust reposed in you or your office; misusing official information in the course of your professional career; offering and or accepting gratification or bribe,” she said.

    Osibogun said the induction remains a symbolic reminder of the core mandate of the Institute which is to admit student members who have passed the prescribed examinations and fulfilled all other conditions set by the Governing Council into Associateship (ACIB); admit students into the Associateship of the Institute among others.

    She said this year’s induction sees a record high number of 993 student members who have all successfully completed the qualifying examinations of the Institute. “This number is the highest in the history of the Institute and it comprises of the following; 162 for Associateship, nine for Chartered MBA, four for Treasurers’ Dealership Certificate, 795 for Micro-finance Certification Programme, and, 23 for Certificate in Banking,” she said.

    She congratulated the bankers describing the achievement in completing an extremely demanding, rigorous and tough professional programmes. “Not only is today, a deserved testament to your hard work, your discipline and your commitment, it also represents a major milestone in your lives. It is equally a time for celebration as you mark both the end and beginning of exciting parts of your lives and an occasion on which to look forward to the opportunities available to you as Chartered Bankers, Certified Treasury Dealers and Microfinance Certified Bankers.

    I wish you all the best as you start the next adventure of your lives and hope that this accomplishment opens many doors of opportunity and helps you to realize your personal and professional ambitions,: she said.

    “In today’s dynamic business environment achieving such professional qualifications, demonstrate commitment to professionalism which is an important differentiator in the competitive market place. As bankers there are so much you can do to bring fresh lease of life to the banking & finance sector and businesses in both the private and public sectors. This implies that the economic potential of our country is not limited by your visions and the dreams of the future. I therefore urge you to always “shoot for the moon, even if you miss it you will land among the stars,” she added.