The Nation Newspaper

Tag: FCMB

  • Court halts contempt proceedings against FCMB, others

    Court halts contempt proceedings against FCMB, others

    Justice Okon Abang of the Federal High Court, Lagos has stayed further proceedings in a contempt proceedings initiated against First City Monument Bank (FCMB) Plc and three of its principal officers.

    The judge, in a ruling yesterday, hinged his decision on the need to respect an October 15 order by the Court of Appeal, Lagos, staying the contempt proceedings pending the determination of an application by the bank and its officials.

    He stated that an enrolled order of the appellate court was brought to his attention, in chambers, by 8.54am yesterday by a Deputy Registrar in his court.

    The affected officials of the bank are Ladi Balogun (Group Managing Director), Segun Odusanya (Deputy Managing Director) and Peter Obaseki.

    The contempt proceedings, initiated by Hensmor Nigeria Limited, was informed by the company’s claim that the bank refused, despite a garnishee order absolute made on July 2 this year, to defray a judgment debt of N6.8billion entered against one of its customers.

    The court had, on December 2, 2011 upon a suit by Hensmor, held in favour of the plaintiff and entered judgment against one of the bank’s customers – Nigerian Maritime Administration and Safety Agency (NIMASA).

    Realising that NIMASA was unwilling to obey the judgment, Hensmor initiated a garnishee proceedings, resulting in an order nisi made by the court on May 15 this year. On July 2, the garnishee was made absolute against FCMB, even with the pendency of NIMASA’s appeal against the judgment and its application seeking to restrain FCMB from paying the judgment sum from its account with the bank pending the determination of its (NIMASA’s) appeal.

    NIMASA also filed an application dated September 25 before the Court of Appeal, challenging the garnishee order absolute and urged the appellate court to restrain the bank from obeying the order absolute pending the determination of its appeal.

    Also, the lower court ordered Hensmor to serve Form 48 (Notice of consequences of disobedience of court order) on the bank. Faced with a dilemma on the possibility of NIMASA returning to make demand should its appeal succeed, the bank prayed the trial judge to stay proceedings pending the outcome of the appeal, a prayer the court refused and proceeded to order a substituted service of Form 49 (notice to show course why order of committal should not be made) on the bank and its affected officials.

    The trial court was to commence hearing on the Form 49 yesterday when a copy of the enrolled order by the Court of Appeal was served on the judge and Hensmor’s lawyer, Mrs E. N. Omorodion. She told the court about the development and sought an adjournment.

    Justice Abang consequently adjourned to October 29 to await the decision of the bank’s pending application slated for October 18 for hearing by the Appeal Court.

     

  • Banks slash online transaction charges

    Banks slash online transaction charges

    Banks have begun reducing transaction charges on their online deals ahead of final implementation of the ‘Guide to Bank Charges’, being reviewed by the Central Bank of Nigeria (CBN).

    Findings by The Nation showed that banks have started a piecemeal implementation of the draft guidelines, which is at the final stage of approval by the apex bank. The document was circulated for stakeholders’ input last July. Checks also showed that the review is to address complaints arising from bank tariffs and other miscellaneous fees charged on their customers’ accounts.

    For instance, First City Monument Bank (FCMB) last week communicated its decision to reduce charges on online transactions to its customers. In a mail tagged: Reduction of transaction charges on FCMBOnline, the bank slashed charges on transfers by 50 per cent. Transactions which cost N200 has reduced to N100; N300 slashed N150 and N500 reduced N250 respectively.

    “In a bid to ensure you are well informed, please be reminded of the reduction in our transaction fees for funds transferred to other banks on the FCMBOnline platform. Please note that you can also transfer funds up to a limit of N1 million daily, with N500, 000 per transfer,” it said in an emailed statement. The platform, it added further offers customers the opportunity to perform other banking transactions, such as Funds transfer, Forex transfer, Bills payment, Statement download, Cheque book /draft requests among others.

    Diamond Bank also said that deductions will no longer be made on account of customers that use the Diamond Debit cards for withdrawals on other banks’ Automated Teller Machines (ATMs). The lender said the move was to demonstrate its commitment towards customer satisfaction as well as its resolve to drive innovation in the industry.

    United Bank for Africa Plc has equally reduced charges associated with ATMs, significantly lowering the cost of transactions, particularly for its Verve debit card customers. The bank had introduced a pay-as-you-go charge structure instead of the monthly charge of N100, which a flat fee was charged to all ATM card holders. The Divisional Head, e-banking, UBA, Dr. Yinka Adedeji, said the move was aimed at delighting customers, following recent complaints and feedback as well as foster the cash-less initiative of the CBN to the mass market.

    Findings also showed that there have been slashes on Commission on Turnover (COTs) in many banks and downward review of SMS alert fees.

    The CBN said the ‘Guide to Bank Charges’, which was issued to the industry several years ago is being reviewed to protect bank customers’ interest. The review, which is at advanced stage is expected to be harmonised before final approval and implementation by banks.

    The apex bank said complaints arising mainly from high bank tariffs could threaten confidence in the banking system. It said that in reviewing and updating the document on the charges, the CBN will be guided by, among other factors, including considerations of financial inclusion, with particular emphasis on consumer protection, unit cost of banks, and contemporary developments in Nigeria’s banking industry.

    It lamented the current practices in a number of banks, where products and services are deployed at exorbitant costs to the customers, saying that the high costs have helped in no small measure in discouraging a large number of the population from assessing financial services.

    Dissatisfaction of banks’ customers could lead to loss of confidence in not only the affected banks but the entire system, and subsequently, could trigger run on the affected banks as well as the system.

  • Shareholders of FCMB, FinBank approve merger scheme

    Shareholders of FCMB, FinBank approve merger scheme

    Shareholders of First City Monument Bank (FCMB) and FinBank have unanimously approved the proposed merger of the two banks.

    The News Agency of Nigeria (NAN) reports that the shareholders gave their approval on Friday at both banks’ Court Ordered Meeting held in Lagos.

    The shareholders also authorised the banks’ directors to consent to any modification on the merger scheme by the Securities and Exchange Commission (SEC).

    Speaking at the meeting, Mr Ladi Balogun, the Group Managing Director of FCMB, said that the merger would provide considerable benefits and opportunities to the shareholders.

    He said that customers, staff and other stakeholders of the banks would be better off after the merger.

    Balogun said that the merger would enhance the market reach and customer convenience through an expanded 270 branch networks for shareholders.

    According to him, the merger would strengthen the commercial banking business they would engage in.

    “This merger will deepen our capabilities.

    “ It will merge FCMB’s strength in investment banking and FinBank’s competitive advantage in commercial, retail and mobile banking,“ he said.

    Balogun also assured the shareholders of increased returns on their investment in the years ahead.

    “The merger of the two banks will ensure a more robust platform for retail growth,“ he said.

    NAN recalls that FCMB, in February, completed the acquisition of the entire paid-up capital of FinBank and had proposed the merger in line with the Transaction Implementation Agreement of July 14, 2011.

    FCMB was selected as the preferred investor by the board of directors of FinBank after a special examination of commercial banks in 2009. (NAN)