Rilwayne001:


Na Buhari matter go kill you

Bros talk na, has he paid his loan?

eliment:
That is really bad

But those banks won't learn

If it's poor man that default loan now they will sell his property but when it comes to big men they only cry foul. Isn't there collateral for those loans before they were granted.

Truly, when big men want to borrow, there is no collateral. Only a mumu will go and give bank his personal house in order to borrow.

His collateral is his integrity and business goodwill acquired over time backed by big account turnover..

I no blame banks. I know men here who borrow between N100m to N300 m from two to three banks without collateral.

And banks are greedy, when you see their product papers(hidden from customers) and loan analysis, you will find out that they are targeting to earn between 30% to 60% of loan amount from the risk asset customer under 12months.

That's to say, they want to earn between 30m to 60m from a 100m risk asset. Aren't they thieves ?

Legitimate business does not pay high profits. Today only few manufacturers can still borrow from banks comfortably. Distributors are job men for manufacturers. And when you have capital, no need borrowing to pay through your nose.

Mogidi:
If Buhari has paid his loan, can he tell us what job he did within these few months to earn that sort of money.

.

Mogidi:

Bros talk na, has he paid his loan?

He hasn't

eliment:
That is really bad

But those banks won't learn

If it's poor man that default loan now they will sell his property but when it comes to big men they only cry foul. Isn't there collateral for those loans before they were granted.

The reason why banks seem to pursue the poor than the rich is because the typical poor man registers his company as a business name. This exposes him as an individual because all the liability of the company are on him. He's 100% responsible for anything that happens to the business.

On the other hand, the rich businessmen have their companies registered as limited liability companies. This means that should anything go wrong in the company, the business alone bears the risk not him as an individual. Banks cannot touch his personal funds. The worst is that the business is liquidated to pay off the debt and that is the worst that can happen.

I think the headline is a little misleading. The fact that the Banks made loan loss provisions in their books doesnt mean the customers all defaulted. Its a long story of technical jargons,but let me summarise it: whenever customers dont pay up principal and/or interest on the due dates, after some time( usually 90 days), they select the loan and specifically test to see if any provision is to be made. The test basically is looking at the present value(todays value) of the collateral as well as the other future possible recievables from the customer and checking whether ita sufficient to meet the loan balance. Afta dat, all other loans that are "fine" because their payments come in as at when due is given a percentage provision to account for any loss incurred but not yet known. Most times, these provisions are over necessary, as most banks eventually recover the full value of the loan often in practice

Mogidi:
Has Buhari paid his bank loan? I mean the loan he used for the election?

Na Buhari mata go giv u heart attack oo!he can pay his loan with his 1st mnth salary if u dnt know.

each of these banks are worth trillions of naira in assets

Notion:

Chai bookers!!!!

hehe..

tiamiyukunle69:
Na them sabi....no be rich man dey default
Hope they will get their money back?

It's not just rich people that get loans. Individuals with average income do too.
But i think banks need to learn strategies for loan requirements. E.g FCMB gave out many loans to people last year to attract customers, even customers without salary account with them. In that case, how can they get their money? You will now see such customers deliberately issuing dud cheques to the bank.
Hmmn, Nigeria really has many issues.

eliment:
That is really bad

But those banks won't learn

If it's poor man that default loan now they will sell his property but when it comes to big men they only cry foul. Isn't there collateral for those loans before they were granted.

a smart bank wouldn't lend based on provision of security alone because some of these assets are hard to dispose of at the right value and on time if at all.

eliment:
That is really bad

But those banks won't learn

If it's poor man that default loan now they will sell his property but when it comes to big men they only cry foul. Isn't there collateral for those loans before they were granted.

That is the way to loot shareholders funds,it is a pity we are in a corrupt ridden country.

Mogidi:
Has Buhari paid his bank loan? I mean the loan he used for the election?

make ur papa go pay 4 him, useless human being.

Loan defaulters or the c.e.o's, friends and relatives? Let them publish the names of the loan defaulters make we peruse na, corruption everywhere..

You tried just that you did not articulate this well the way everyone will understand.
Some of those hard-core assets might not be fully recovered and thus may become lost assets. However, CBN forces banks to make provisons for all facilities according to prudential guidelines: 1% for performing loans known as general loan loss provisioning. At the end of the facility after full regularisation, it comes back as profit. Others are 10%, 50% and 100% for lost accounts. However, when recovery is meticulously done in the current financial year, most of those earnings locked or lost as interest on classified accounts would be earned by the banks as profit which wld hit this year's P and L account or Fin Reports. So the banks although having made such provisionings can still earn them back once fully recovered. All hope is not lost really!

maxhatman:
I think the headline is a little misleading. The fact that the Banks made loan loss provisions in their books doesnt mean the customers all defaulted. Its a long story of technical jargons,but let me summarise it: whenever customers dont pay up principal and/or interest on the due dates, after some time( usually 90 days), they select the loan and specifically test to see if any provision is to be made. The test basically is looking at the present value(todays value) of the collateral as well as the other future possible recievables from the customer and checking whether ita sufficient to meet the loan balance. Afta dat, all other loans that are "fine" because their payments come in as at when due is given a percentage provision to account for any loss incurred but not yet known. Most times, these provisions are over necessary, as most banks eventually recover the full value of the loan often in practice

Mutuwa:

Well,I don't bank with any of the aforelisted.

So u no get account at ur age ?