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We’ve Enough Dollars for End Users, Says CBN

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Senate
  • We’ve Enough Dollars for End Users

The Bankers Committee of the Central Bank on Thursday declared that there was adequate stock of foreign exchange to sustain the spate of dollar sales to various segments of forex market.

The regulator stressed that it was in possession of adequate stock of dollars to ensure that it met the demands of all genuine bank customers in the country.

The Director, Banking Supervision, CBN, Ahmed Abdullahi, said this at a press briefing held along some chief executive officers of banks shortly after the committee’s meeting in Lagos.

Abdullahi said, “The recent development in the forex market has led to prices turning downwards and convergence of rates and the positive effect of that on the economy. We have seen inflation trending downwards. There is a forecast that by the second quarter of this year, the economy will be out of recession and we are going to see positive growth.

“The fact is that the CBN has the arsenal in its war chest to be able to sustain what is happening in the forex market. That is why the CBN recently introduced new FX windows for the Small and Medium-scale Enterprises to access forex through their banks with minimum documentation.”

He added, “There is also another initiative, the investor/exporter window, where it will be a market where prices will be determined by market forces, and it is a window that will allow investors to come in and trade their forex at a price they consider appropriate. Because of the convergence of rates, confidence is going to be built in the market so we are likely to see investors come in.

“In order to further build confidence, that is why we have this window that will enable them come in and improve the inflow of forex in the economy.”

According to the CBN director, the committee has agreed to allow banks to use five per cent of their profits after tax to provide equity funding for SMEs and agricultural companies.

He said, “The important thing is the economy and the committee also emphasised the issue of financing the SMEs and agriculture, using five per cent of the banks’ profits. That will help in fast-tracking the process of the economy coming out of recession.

“So, the banks are determined to contribute five per cent of their profits to be used in providing equity funding for agriculture and all small-scale businesses in the export drive.”

The Chief Executive Officer, Rand Merchant Bank, Mr. Michael Larbie, said the committee was committed to providing forex to end-users.

“In line with that, the banking community is committed to further ensuring that forex is available for all legitimate personal and business travels. As a result, the banks now are committed to having travel desks and cubicles in most of their branches where appropriate exchange rates will be duly published so that anyone that walks in and requires business travel allowance will get it,” Larbie explained.

The Managing Director, Access Bank Plc, Mr. Herbert Wigwe, said the committee also agreed to establish a central database to enable the banking industry to identify and remove suspected electronic fraudsters from the system.

This, he said, would lead to the reduction of e-banking and card frauds.

The Managing Director, Ecobank Nigeria, Mr. Charles Kie, said the committee emphasised the need for all the banks to continue to support the economy in order to get it out of recession.

The Acting Director, Corporate Communications, CBN, Mr. Isaac Okorafor, said factors that drove the economy into recession were being addressed already.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Loans

Increase in Banks’ Bad Loans Caused by Construction Sector

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housing-loans

The banking industry saw a 13.6 percent MoM (month on month) increase in bad loans to N2.76 trillion in August 2021, and the Central Bank of Nigeria attributed the increase to the rising loan defaults in the country’s construction sector.

The construction industry is touted to be under intense pressure due to the rise in the prices of building materials.

The Central Bank of Nigeria said this in its August Economic Report, stating that the NPL (Non-Performing Loans) ratio of the banking industry went up to six percent in August, one percentage point more than the five percent regulatory limit.

According to data from the apex bank, the total credit to the domestic economy went up by 2.2 percent to reach N46 trillion in August, from the N44.99 trillion recorded in July. This suggests that the NPL (bad loans) went up to N2.76 trillion in August from N2.43 trillion seen in July, a N330 billion or 13.6 percent increase.

The big rise in NPLs was explained by the CBN as a result of increased loan defaults in the construction sector, which accounted for about 4.7 percent or N905 billion of credit owed to other sectors in August, going up from 4.6 percent of N879 billion back in July.

The apex bank said the increase in the construction sector’s non-performing loans was due to the increase in process of building materials, which made it more difficult for contractors to meet their debt obligations.

Regarding this development, the Managing Director of Built2Suit Limited – a firm of architects – Ibukun Odu, said that apart from the increase in loan defaults, construction firms may have to turn to layoffs in order to reduce overhead cost.

Odu lauded the correctness of the CBN report, stating that a lot of contractors were finding the period extremely difficult. Odu stated that all the main components have witnessed increases of between 75 – 90 percent. He mentioned cement, which used to be sold at N2500 but is now sold between N4000 and N4200.

 

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Banking Sector

FirstBank DecemberIssaVybe: Showing Kindness as You Vybe

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The roof is already getting raised with #FirstBankIssaVybe, #DecemberIssaVybe campaigns. With FirstBank, it is always a total experience of being woven into the fabric of society from banking at its finest, to music, fashion, arts, and sports. Across the spectrum of human endeavour, FirstBank stands tall behind its over 32 million customers and counting. 

As FirstBank makes every day a vybe every December, it is also passionate about ensuring that everyone vybes with kindness. This is in sync with the words of Maurice Elias, Professor of Psychology, “without kindness, our communities, families, schools, and classrooms become places of incivility.” As we get the blast of the season, the 127 years strong banking brand in furtherance of its kindness campaign has created a simple calendar to ease your ability to create a SPARK in the lives of people around you.

At FirstBank, SPARK stands for Start Performing Acts of Random Kindness. The SPARK initiative was launched 4 years ago to make a difference in the nation by seeking to inspire and institutionalize kindness. By encouraging kindness, empathy and consideration for others, SPARK is placing FirstBank at the forefront of the social impact space. The unique way FirstBank is amplifying kindness is through its different directorates and departments. This way the Bank is reaching more communities, touching more lives, and spreading kindness.

The FirstBank kindness drive stands on three (3) pillars of compassion, civility, and charity. Compassion and charity readily come tops when we think about kindness, and FirstBank is championing the cause to also promote civility through the SPARK initiative. Civility covers the aspects of kindness that does not cost you anything to use in igniting the world around you. Imagine as you get to the venue of the next FirstBank’s DecemberIssaVybe show, and you give up a parking lot closer to the event hall to the car behind you?

The global head of marketing and corporate communication of FirstBank, Folake Ani-Mumuney says “At FirstBank, we spend every waking moment working to create meaning in the lives of our customers and publics. We are inspiring kindness because it brings meaning to lives and creates a happier society. So, as you vybe this Yuletide, vybe with kindness.”

Kindness does not have to cost you a kobo, so click here to download and share your kindness calendar for those simple tips to start performing acts of random kindness every day this December.

The need to promote kindness in our homes, schools, fun places, and the society at large cannot be over-emphasized especially with the increased incidence of bullying prevalent around us. In promoting the need for kindness in education and ‘cyber kindness’, FirstBank sponsored two impactful webinars during its corporate responsibility & sustainability week in July 2021. You can click here to access the Zoom recordings of the webinars.

Kindness should be a way of life, and FirstBank is at the forefront. Join the kindness train, vybe with kindness this Yuletide and always!

 

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Banking Sector

Stanbic IBTC Emerges Most Outstanding Commercial Bank Brand in Nigeria

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Stanbic IBTC - investorsking.com

Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC, was named the “Most Outstanding Commercial Bank Brand in Nigeria” at the 2021 edition of the BrandCom Awards which was held recently.

The awards, organised by Brand Communicator Magazine recognised brands, organisations and personalities. It took cognisance of their outstanding contributions to the growth and development of the Nigerian economy.

Wole Adeniyi, Chief Executive, Stanbic IBTC Bank, appreciated the organisers for the award, and noted that Stanbic IBTC Bank has over the years provided unparalleled services and designed products tailored explicitly towards meeting the needs of its customers. 

Wole noted that the award would spur the organisation to continue providing excellent services to its clients. The awards reaffirm the organisation’s commitment to providing world-class financial services to its network of clients.

The Stanbic IBTC Bank Chief Executive said: “We are delighted to have emerged the Most Outstanding Commercial Bank Brand” at the BrandCom Awards. This award confirms that we prioritise our customers’ interests because they are the reason we are in business. We pledge to continue developing innovative products and services that are customer-centric, just as we are committed in our quest to continue fulfilling the financial needs of our customers at all times.”

Wole added that Stanbic IBTC would strive to continue exceeding its customers’ expectations.

Stanbic IBTC remains committed to providing a simplified customer-friendly experience that enhances customer satisfaction and exposes them to new trends in the financial services industry.

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