casualobserver:

@biodun556
@gypsey

Watch this


https://www.youtube.com/watch?v=JG5c8nhR3LE

I am already aware how banks works but thanks anyway.

casualobserver:


Like I said you are an ignoramus. When people talk about their area of expertise, you shut up and listen.

Bank lending is like a legitimate pyramid/ponzi scheme. Like I said a bank can have 10m and lend 10m to 100 people. So long as the borrowers are credit worthy and pay their loans as and when required, the banks make money and the borrowers and depositors are happy. That is why banks cannot afford to lend to people who Are at risk of default because they can bring the whole system down. That is also why borrowing rates in Nigeria are high to factor in the risk of defaults

The reason why loans are difficult in Nigeria is that 1) there is no institutionalized credit bureau to track who is credit worthy 2) most people are self employed and their income cannot be verified.

Bank lending has nothing to do with physical money. If GT bank lends you 5m, you are not going to walk away with 5m cash, they will “credit” your account with 5m. If you want to use the money to buy a car at Emeka motors, you will transfer the money to Emeka’s account at Zenith. No cash involved. Yes there will be a few cash withdrawals but the majority of the transactions involve pressing buttons to move money around, no cash involved. The banking credit system is based on virtual money moving around electronically based on deposits by depositors. Like I said Gy bank can lend the money you deposited to 1000 different people SO LONG AS THEY ARE CREDIT WORTHY AND CAN OAY BACK.

When did Nigeria start cashless policy? The cashless policy we practice hasn't cover 10% of our daily transaction.

If I borrow 5 million naira from GT bank to buy cow from Fulani, definitely I will pay in cash.

If bank generate just figures as you claim, no naira note should be in circulation by now.

If you go to bank early in the money to withdraw in most cases with my own experience, if no one has save money, those who want to withdraw we have to remain on queue till the bank collect enough cash from depositors. The bank will give excuse that no net work for those who want to withdraw or simply keep them waiting.

You are still not making sense to me.

Biodun556:


Not true

Bank can never give out what they don't have.

If generation of ghost figures as loan in is true as you claim where will the creditors get the cash from?

the guy is right

banks create new money when they give out loans
97% of the money in the economy exists as bank deposits, whilst just 3% is physical cash. bank deposits are created when banks give loans

Banks create money through the accounting they use when they make loans. The numbers that you see when you check your account balance are just accounting entries in the banks’ computers. These numbers are a ‘liability’ or IOU from your bank to you. But by using your debit card or internet banking, you can spend these IOUs as though they were the same as 1000 naira notes,

When a bank makes a loan, for example to someone wanting to grow his business, it does not typically do so by giving them millions of naira worth of banknotes. Instead, it credits the person bank account with a bank deposit of the size of the loan. At that moment, new money is created.

faceland:


You mean a millionaire can't trade the old note for the new one? You re not a nigerian to believe that,

which millionaire business man would keep such an amount at home.?

If you say Lagos,jagaban come to mind

emorse:

This idea that nothing can ever work in Nigeria is part of the reasons why it's so difficult to make things work. The CBN has done its own bit. We are not in a position to do anything about it except to sit back and watch. I think we should learn to do just that.

Same CBN officials will help them change the money to new ones, why do you think they are sun-drying the money, to go and throw it away?

Biodun556:


When did Nigeria start cashless policy? The cashless policy we practice hasn't cover 10% of our daily transaction.

If I borrow 5 million naira from GT bank to buy cow from Fulani, definitely I will pay in cash.

If bank generate just figures as you claim, no naira note should be in circulation by now.

If you go to bank early in the money to withdraw in most cases with my own experience, if no one has save money, those who want to withdraw we have to remain on queue till the bank collect enough cash from depositors. The bank will give excuse that no net work for those who want to withdraw or simply keep them waiting.

You are still not making sense to me.

My friend I can’t help you. I did t come here to be a teacher. Bottom line is cash outside the banking system is not the reason Nigerian banks will not lend to you. No matter how much cash a bank has it will not lend to you if it doesn’t think you can pay. Banks are I. The business of making money and their primary way of making money is via credit. If you can pay a bank will lend you whatever you need….and that’s all you need to know.

If you are a staff of a reliable government or corporate institution, banks will lend to you. If you have a bankable business banks will lend to you. The problem I repeat is most Nigerians and their business ideas are not bankable not because there is no money to lend.

Too much emotion and ignorance In matters that are really simple.

[quote author=iwaeda post=118486852][/quote]

Why will bank be spreading naira notes? How sef? You must be a joker .

Some people deserve killing by hanging

Fpr everyone saying Nogeria is a corrupt country I agreed but the issue right now is the inability of the law enforcement to track down whoever is responsible imagine a vedio with faces and those guys in the clip are not ghost so I believe dia shud hv been an arrest by now but u know what from the top down to the poorest masses we are all corrupt and that is why l'm very scare if dis country will ever change for good

thebosstrevor1:


the guy is right

banks create new money when they give out loans
97% of the money in the economy exists as bank deposits, whilst just 3% is physical cash. bank deposits are created when banks give loans

Banks create money through the accounting they use when they make loans. The numbers that you see when you check your account balance are just accounting entries in the banks’ computers. These numbers are a ‘liability’ or IOU from your bank to you. But by using your debit card or internet banking, you can spend these IOUs as though they were the same as 1000 naira notes,

When a bank makes a loan, for example to someone wanting to grow his business, it does not typically do so by giving them millions of naira worth of banknotes. Instead, it credits the person bank account with a bank deposit of the size of the loan. At that moment, new money is created.

The guy is not right

Customers deposit forms bank reserves that will determine how much they give as loan.

It is true that banks give 10 times of their reserve as loan but costumers deposit will determine the volume of that reserve and how much can be given as loan

Homologous:
Jesus!
I am tired of these guys that share YouTube videos. Just upload the damn video and leave commentary alone. Leave commentary to the f***** audience.
Its not like you guys are even fluent or coherent- your stupid commentaries ruin the content. Know this and know peace!

Jesus!

You're correct!!

With their fake accent

I think we should withdraw cash from circulation.

Let’s switch to eNaira.

This your header is very funny.

Having seen many of these videos, I was curious to see how "HUGE" the naira notes are.

Abeg OP take it easy with us next time .

IamAsiri:


Why will bank be spreading naira notes? How sef? You must be a joker .

Might be banks outside the city. With no ventilation. Have you worked in a bank before.

They might have lied, cheated or even killed to acquire this huge money. But shortly after may have found it wasn't worth all the troubles!
That they haven't used it for so long means they really didn't need the [obviously] ill-gotten wealth.
So now what's the gain?

ALTERNATEID:
Where are those morons who think CBN didn’t know what they are doing when they took the decision to redesign the Naira?

Shush! You talk too much. If CBN really wants to tackle corruption why can't people bringing in excess money into the bank now be interrogated? CBN is just helping them to exchange their already wet Naira. CBN is even forcing banks to open on Saturday so as to receive more Naira.
If you want to be truthful to yourself. How many Nigerians can save more than #2m cash at home?

If CBN wants to help, people bringing in more than #5M dampened notes should be call in for questioning

Make una gimme address na , make i pack some money
These people don finish this country! God!

Biodun556:

https://www.youtube.com/watch?v=LjN3GFj_UpI

CBN trying so hard to justify redesigning the naira. So even if the govt didn't plan to redesign the naira, so how will these notes be spent?

twosquare:
Fake news.

It is not fake news, it as being proposed whether US go on with it or not.

Biodun556:


The guy is not right

Customers deposit forms bank reserves that will determine how much they give as loan.

It is true that banks give 10 times of their reserve as loan but costumers deposit will determine the volume of that reserve and how much can be given as loan

bank reserves is created by central bank to protect banks if panic happens e,g mass withdrawal. bank reserves is usually 10-15% of bank deposits

the reserve does not determine the volume of the loan rather banks create new money when they give out loans

loans are the means bank makes new money because they also collect interest. money are destroyed when you pay back loans

Praise be to God for truth and liberty!

adioolayi:
Awon Olé a gbe wiri.... E ni ku re...e ni ku s'ibi ti aso yin wa

Bi e ti fi Iya je mekunu...iya o je yin ni oo

What kind to madness is this!

Nwanne I’m tired of the evil currently going on the country
If only men & gods are quick to root out all bad Goverment officials in naija we would be a force to reckon with in the world.
But atlas what do we know.

oz4real83:
The most difficult illegal money to trace are those done in cash, whether for hard drugs, ransom payment or any form of illegal transaction. These evil people know that if such money are paid into their accounts, paper or electronic trails are created for investigative and other purposes. Cashless policy is still the key to solve these issues.

Why do you think Miyetti is asking for an extension? Those guys have so much cash from both legal and illegal means. Fulani man will never sell his cow to you and accept cheque or transfer, it must be cash. The kidnappers deal in cash. The cash in some people's house/possession will shock you

basty:
How can we salxvage Nigeria?

We need to summon Lord Luggard

Moh247:



Every day new new discovery of Naira notes

Kilode


.

And they don't tell us the owners, Nigeria matter tired me abeg.

THIS VIDEO WAS NOT SHOT IN LAGOS. THE MEN IN THE CLIP ARE SPEAKING HAUSA SO IT MUST BE FROM ONE OF THE NORTHERN NIGERIAN CITIES WHERE MOST RICH FOLKS KEEP MONEY AT HOME

oz4real83:
The most difficult illegal money to trace are those done in cash, whether for hard drugs, ransom payment or any form of illegal transaction. These evil people know that if such money are paid into their accounts, paper or electronic trails are created for investigative and other purposes. Cashless policy is still the key to solve these issues.

Swiss account is not traceable. Cayman accounts not traceable.

Highly corrupt country. It's terrible

Homologous:
Jesus!
I am tired of these guys that share YouTube videos. Just upload the damn video and leave commentary alone. Leave commentary to the f***** audience.
Its not like you guys are even fluent or coherent- your stupid commentaries ruin the content. Know this and know peace!

Jesus!

Seems you dont know youtube policies oga abeg if you no de hear cant u see properly that the video shows what it headlines

Which one is 100 Fisent!
Oga Blogger it is Per-cent percent not Fisent.
All this cbn paid bloggers self