I have a friend abroad who has substantial funds in some of the rescued banks. He came accross an article in which sanusi threatened to liquidate the rescued banks if they dont cooperate with the consultants packaging them for sale. He is worried and thinking of flying  down to move his funds to first bank nigeria early  next month. What do you think i advise him as i am not even sure of the future of these banks given   unpredictable reforms. He has funds in Oceanic , Afri bank, Intercontinental and Union bank. Do you think these banks would even last the next three months so that he does not hurry down

To the best of my understanding, I think sanusi is doing the right thing for this country.

@Poster,

By funds, do u mean cash deposits in the affected banks or stock holding in this banks?
Well, CBN guaranteed that no deposit holder will lose their funds so thats all we have to contend with, also NDIC insures you up to a certain limit (cant remember now),

Personally, i think it will be throwing the baby out with the bath water if SLS liquidates the banks, most likely i think we might see a senario where this banks are acquired by other financial institutions including all assets and liabilities,

So, i would advise your friend that if its deposits he has in these banks and he is very much uncertain about the future then he prolly has to come to naija to move them to other banks,

@doctor
the jury is still out on SLS, if these whole banking stuff ends as it stands now, we will award him a huge F9

from the original op

jeez:

A new finance company has berthed in warri with plans on the way to extend biz to benin , lagos and portharcourt  e.t.c very shortly. For now , the company is not interested in deposits as it has surplus liquidity from shareholders.

For now, the focus  is to give instant loans to nigerians  in paid employment . we have rolled out two products as follows :

I] INSTANT SALARY ADVANCE (ISA) : MAXIMUM OF 50% OF Monthly salary
    Turnaround time after application and documentation  max of 24 hours.

2] CONSUMER ACQUISITION LOAN (CAL)  : 70% funding of consumer asset with a repayment tenor of max 3 months within   
   salary range.
Our main focus is on bankers, oil company workers and telecom employees. Auto loan and Land acquisition products are still being fine tuned. IF in warri, pls call uche on 08035764662 to book an appointment

jeez:

If u had your facts, u would not have started this thread. Spring bank is the best out of the nine rescued banks. In terms of loss made, spring bank had the lowest loss and lowest non performing assets. Again Spring bank had the least staff casualty as compared with the other nine banks. Spring bank downsized 200 while some of the rescued banks did 1,500. Spring bank has credited the staff accounts of all those downsized but they can only access it after their clearance. Since december, the deposit base of spring bank has continued to rise which is a  sign of renewed customers confidence in the bank ( 10% growth since december)

Spring bank has quality staff and it is resilent and has withstood shocks that would have easily made other banks extint. The worst is over for the bank and we can only expect growth as the bank strategises in line with the CBN reforms.

jeez:

Sanusi injected 620billion tax payers money to stabilize banks. Recent reports show that these 5 ceo's have a combined asset/networth of over 3 trillion naira. Would it not have been better if these ceo's were silently forced to recapitalize their banks and made to resign afterwards than the whole noise that has created a crisis of confidence in the banking sector and put foreign banks and international investors on the path of serious caution when dealing with nigeria transactions

dodgy business and questionable statements

all nigerian banks are strong now,,,,so u can put your money in any bank of your choice,

Tmoni:

@Poster,

By funds, do u mean cash deposits in the affected banks or stock holding in this banks?
Well, CBN guaranteed that no deposit holder will lose their funds so thats all we have to contend with, also NDIC insures you up to a certain limit (cant remember now),

Personally, i think it will be throwing the baby out with the bath water if SLS liquidates the banks, most likely i think we might see a senario where this banks are acquired by other financial institutions including all assets and liabilities,

So, i would advise your friend that if its deposits he has in these banks and he is very much uncertain about the future then he prolly has to come to naija to move them to other banks,

@doctor
the jury is still out on SLS, if these whole banking stuff ends as it stands now, we will award him a huge F9

The limit is really low, it was 50k not sure if they've changed it. I won't advise anyone to even think about NDIC insurance in making a decision.

Sanusi got it wrong. See the panic he as caused. A lot of developed countries have so many wrongs but they don't expose themselves like this.
It should have been a little more discrete and internal.

to be on a safer side, I will advice the guy to take is money to any of the unaffected banks,because anything canb happen in this country

Zimex:

The limit is really low, it was 50k not sure if they've changed it. I won't advise anyone to even think about NDIC insurance in making a decision.

After the Soludo banking consolidation , it was increased to 200k

No, he will not liquidate the banks. He plans to sell them to foreigners which is unwise.

The reason why it is unwise is that the foriegn banks do not care about the country. They are more interested in making profits.

Have you tried opening an account with Citibank? I plead with you, don't even try.

And do you see any of their branches outside the major three cities-Lagos, Abuja and Port Harcourt?

Noooooooooooooooooooooo

And he has stated that he will not allow any bank to fail!

If they want to run down, All I want from them is they should just come and safe all those their client's money in my house.

I guarantee them that the money is safed

sanusi can neva try it.atleast we d shareholders will not accept that.all his agenda is been xposed we av sent our petition 2 d VP

grandstar:

No, he will not liquidate the banks. He plans to sell them to foreigners which is unwise.

The reason why it is unwise is that the foriegn banks do not care about the country. They are more interested in making profits.

I disagree with you.
Selling these banks to foreign coy is the way to go

1. We will get healthy competition
Majority of those foreign banks or investment companies vying for the acquisition of these banks are either number 1 or 2 (in terms of market share) in their current territory. These foreign coy structure their business strategy / goal to attain and retain major market share either no. 1 or 2 positions in every country they operate in. If they cannot within their time frame achieve their goal of being the best or second best, they’ll have to exit that market with their exit strategy in the back burner. If these coy do get permission to operate in our country, end result will be healthy competition between them and our top banks. At the end of the day, consumer will have the upper hand.
2. This will bring increased foreign direct investment, foreign expertise and technology into the country.
3. This move will also improve our global presence in the world of mergers and acquisition, and all the positive features that revolves around it.


Selling these banks to local bank is not healthy and this might put us back in the same hole.

1. These local banks will get more monopoly power and this is not good for the market.
2. They’ll get too big to utilize and optimize resources within their reach, will not maximize ROI properly. The reason why we’re in this hole in the first place
3. There will be no competition if it’s the same set of company that will remain in the market.

jst want to kw,will all of these affect staff of the affected banks(i.e if the banks are bought over by foreigners?)will it translate to a beta package for them or lose of their jobs?will appreciate comments on this pls.

Well said Courage89, you stole my thunder

I expect liquidating the banks would be a last resort for the CBN, otherwise why inject funds and try to help them recover their bad loans.

The banks need injection of capital, in the least to replace the CBN rescue funds. Getting said funds from foreign banks is probably the best option cos (as have been said by others)
- we get an influx of forex, which is better than us playing musical chairs with local funds
- the investing banks should be able to bring in needed expertise, technologies and best practices
- and the affiliation should add more credibility to our sector in the global market

Please keep in mind that these local banks in question can be described as the worst off in the sector and I think it will be a great coup if we get to sell the worst of the sector to foreign investors while keeping the top ones under local ownership. We eat our cake and have it, so to say. If they fail under foreign ownership, then it simply good riddance to bad rubbish, after all they were on the failure already

Sanusi is doing a good job. For once people should give credit to whom its due, even if the reform does not benefit you as an individual.The interest of the Nation should come first.
Banks should be made competitive, and the customers should receive security and guarantee from CBN for their deposits. the era CE Os sit on the banks and operate it as their family business is over.

He said this so let us trust our public officers,


, We will not allow any bank to fail. However, we will also ensure that officers of banks and debtors who contribute to bank failures are brought to book to the full extent of the law and that all proceeds of infraction are confiscated where legally feasible.   -Sanusi Lamido

jeez:

I have a friend abroad who has substantial funds in some of the rescued banks. He came accross an article in which sanusi threatened to liquidate the rescued banks if they dont cooperate with the consultants packaging them for sale. He is worried and thinking of flying  down to move his funds to first bank nigeria early  next month. What do you think i advise him as i am not even sure of the future of these banks given   unpredictable reforms. He has funds in Oceanic , Afri bank, Intercontinental and Union bank. Do you think these banks would even last the next three months so that he does not hurry down

There isn't much reason to fear any longer! Sanusi's hands have been tied behind his back! [/b]All he has right now is a mouth to talk and no fist to punch!Very soon his mouth will be glued to his tongue and he will speak no more!!
Jonathan's Government is doing the right thing by calling him to order! It's a matter of time, three months max b4 Sanusi puts in his resignation!

All the same tell your friend to move his funds to a safer bank like GT!

[b]The folks on here supporting Sanusi are mostly 9-5 jobbers with zero stake in the banking industry! You have no deposits in the banks, you hold no shares in any of the banks and you have no investments whatsoever, hence you have no understanding about the impact of Sanusi's actions on the economy!!

Sanusi is doing a nice job and I trust that for now he will take a logical and reasonable decision on the rescued banks.

PapaBrowne:

There isn't much reason to fear any longer! Sanusi's hands have been tied behind his back! [/b]All he has right now is a mouth to talk and no fist to punch!Very soon his mouth will be glued to his tongue and he will speak no more!!
Jonathan's Government is doing the right thing by calling him to order! It's a matter of time, three months max b4 Sanusi puts in his resignation!

All the same tell your friend to move his funds to a safer bank like GT!

[b]The folks on here supporting Sanusi are mostly 9-5 jobbers with zero stake in the banking industry! You have no deposits in the banks, you hold no shares in any of the banks and you have no investments whatsoever, hence you have no understanding about the impact of Sanusi's actions on the economy!!

So says the bank 'chairman'. Your self aggrandizement of importance like a toddler is just hilarious. 
With all your claims to seeing what others 'miss', I am yet to see you backup your position with facts and figures, only opinions and innuendo. The truth is that it is the likes of you that have been damaging the economy by preaching doom and gloom
Still, you are free to make whatever 'prophetic' statements you want about sanusi, but I would advise that you stay away from boxing those who do not share your views into any societal class or caste.

The folks on here supporting Sanusi are mostly 9-5 jobbers with zero stake in the banking industry! You have no deposits in the banks, you hold no shares in any of the banks and you have no investments whatsoever

see confusion - 9-5 jobbers with no stake in the banking industry - pray tell, where are The salaries of these 9-5 jobbers paid into?

you do realise that the 9-5 jobbers represent the middle class, the real owners of the cash in the banking industry?

u think we are not bothered about risks to our hard earned cash?

Fitch says Nigerian banking sector making improvements(The following statement was released by the rating agency)

Feb 18 - Fitch Ratings says in a report published today that the Nigerian banking sector's historically weak corporate governance and limited accounting disclosures have begun to improve, but notes that disclosure could be improved further.

"The Central Bank of Nigeria's (CBN) initiatives to improve corporate governance and overall levels of transparency should assist to further stabilise the Nigerian banking sector," says Anthony Walker, a Senior Director in Fitch's Financial Institutions Group.

"Investors will now begin to benefit from improved financial statement and periodical reporting disclosures, together with a common year-end for all Nigerian banks which will assist investors in assessing the risks within these institutions. At the same time further improvements made to corporate governance regulations since the conclusion of the CBN's special examination have also been considered to be positive." Following the conclusion of its special examination, the CBN made the managing directors and several of the executive directors at eight of Nigeria's problematic institutions redundant and appointed new management teams.

Fitch notes, however, that most of the non-executive directors of these institutions have remained in place. The agency considers this surprising given the apparent breakdown in corporate governance and risk management controls at the institutions.

"One of the challenges that Nigeria will face, a feature of most emerging markets is the ability to find suitably qualified and experienced individuals to serve as non-executive directors," says Denzil De Bie, a Director in Fitch's Financial Institutions Group. Although Nigerian regulations provide guidance on the structure and composition of board committees, the agency considers that the shortage of adequately qualified and experienced non-executive directors will continue to impact overall levels of corporate governance.

Moving forward, Fitch believes it would be beneficial if bank compliance functions are strengthened and given a greater role in identifying and reporting corporate governance weaknesses to relevant board committees and the CBN.

http://www.reuters.com/article/idUSWNA422420100218

biina:

So says the bank 'chairman'. Your self aggrandizement of importance like a toddler is just hilarious. 
With all your claims to seeing what others 'miss', I am yet to see you backup your position with facts and figures, only opinions and innuendo. The truth is that it is the likes of you that have been damaging the economy by preaching doom and gloom
Still, you are free to make whatever 'prophetic' statements you want about sanusi, but I would advise that you stay away from boxing those who do not share your views into any societal class or caste.

Yeah, it might sound like "self aggrandisement of importance"but its neccesary sometimes to talk down on folks that just speak recklessly without the slightest form of understanding on a given issue! For you Biina, I know you have understanding on the given issue, probably a different kind from mine, and I respect that. However, majority of folks that support Sanusi, both here on Nairaland and outside have little or no understanding of the impact of reckless policy decisions on overall economic performance! Majority happen to be 9-5 jobbers!

So you finally own up to the fact that since the advent of Sanusi, the economy has been damaged, but you'd rather blame fifth columnists than place responsibility on the man whose very unprofessional pronouncements, very crude methods and very aggressive sectional agenda caused all the damage!

Whether we like it or not, we have to start coming to terms with the fact that the new Ag President is not a fan of Sanusi and would not allow most of Sanusi's actions. Sanusi would have a frustrating stay at the CBN if he chooses not to resign. He already said he is well ready to go on exile! I say hurry!!

PapaBrowne:

Yeah, it might sound like "self aggrandisement of importance"but its neccesary sometimes to talk down on folks that just speak recklessly without the slightest form of understanding on a given issue! For you Biina, I know you have understanding on the given issue, probably a different kind from mine, and I respect that. However, majority of folks that support Sanusi, both here on Nairaland and outside have little or no understanding of the impact of reckless policy decisions on overall economic performance! Majority happen to be 9-5 jobbers!

Do not try to justify that which is wrong. It is one thing to disparage someone's understanding of issues, its a whole different thing to be condescending to a social class.

So you finally own up to the fact that since the advent of Sanusi, the economy has been damaged, but you'd rather blame fifth columnists than place responsibility on the man whose very unprofessional pronouncements, very crude methods and very aggressive sectional agenda caused all the damage!

Have there been damages to the economy since Sanusi assumed office? Yes.
Have said damages been a result of his actions? No
Damages to the economy did not start with Sanusi, nor will it end with him. poor corporate governance, power failure, dependence on oil etc are some of the many things that have damaged our economy in recent years and are still damaging parts of, or the whole economy. People like you on the other have damaged the trust in the sector by spreading unfounded doom and gloom. Sanusi di that which needed to be done.

Whether we like it or not, we have to start coming to terms with the fact that the new Ag President is not a fan of Sanusi and would not allow most of Sanusi's actions. Sanusi would have a frustrating stay at the CBN  if he chooses not to resign. He already said he is well ready to go on exile! I say hurry!!

I wonder what you will do if Sanusi is still in office after in May.

jeez:

I have a friend abroad who has substantial funds in some of the rescued banks. He came accross an article in which sanusi threatened to liquidate the rescued banks if they dont cooperate with the consultants packaging them for sale. He is worried and thinking of flying  down to move his funds to first bank nigeria early  next month. What do you think i advise him as i am not even sure of the future of these banks given   unpredictable reforms. He has funds in Oceanic , Afri bank, Intercontinental and Union bank. Do you think these banks would even last the next three months so that he does not hurry down

I'll advise that you should let him come down to come and do what he plans to do because it is good to do anything that will allow him to sleep at night than to develop hypertension for himself.

I have also moved my money away from Oceanic, Intercontinental and Union bank. Though, i still have shares with these banks but i have some plans on that as well.

Good luck.

Mallam Sanusi, most likely wont liquidate the banks.

I expect he'ld sell them to foreign banks for the sake of keeping competition amongst the banks in the economy.

moreover this I feel is better than liquidating the concerned banks.


but its amazing how day in day out he keeps making rounds in the news.

PLEASE SOMEONE SHOULD ADVICE ME. AM PLANNING TO SEND HOME LARGE FUNDS TO BE FIXED AT EQUITORIAL TRUST BANK.BUT I DON'T KNOW IF ITS RISKY.ALTHOUGH I HAVE GOTTEN ASSURANCES FROM THE MANAGER THAT NOTHING IS GOING TO HAPPEN TO THE BANK AND MY MONEY.PLEASE I NEED YOUR ADVICE!

Can someone in the house give us detailed of the trouble and reliable banks

It is better of that way, Let the person come around,