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Nairaland Forum / Nairaland / General / Business / Banking Blues In 2016 (19329 Views)
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Re: Banking Blues In 2016 by mickey45: 11:09am On Jan 05, 2016 |
Demmocrats: You know how to do that? Buy Gold profitably? |
Re: Banking Blues In 2016 by 1freshdude: 11:23am On Jan 05, 2016 |
ejibaba: While your opinion about the TSA implementation been the reason for this hullabaloo in the banking sector may be right, its just a proximate cause of the problem. The ultimate cause is the Dutch disease! This term was coined by the Economist 1977 to describe the woes of the Dutch economy. And it can be defined as the negative impact on an economy of a commodity that gives rise to a sharp inflow of foreign currency, such as the discovery of large oil reserves. The currency inflows lead to currency appreciation, making the country's other products less price competitive on the export market and in turn encouraging too much investment on this single commodity, leaving the other sectors of the economy far underdeveloped. The oil is our curse, funds mobilized from savings are funneled into it exploration activities to the detriment of other sectors, it only makes sense that banks and the people will suffer when this oil becomes worthless. Its like putting all your eggs in a basket, you know what happens when it falls now? |
Re: Banking Blues In 2016 by CashdownNG: 11:30am On Jan 05, 2016 |
Aviero: Werey... |
Re: Banking Blues In 2016 by EZEIGBO1OFIMO: 11:36am On Jan 05, 2016 |
mickey45:Gold has actually lost 50 percent of its value in the last 3 years and continues to keep falling; investing in any commodity right now isn't the best decision, as commodity continue to suffer oversupply in the market. you can invest your money in durable organic investments as local agricultural production for a hungry market. entering the service sector. |
Re: Banking Blues In 2016 by Nobody: 11:43am On Jan 05, 2016 |
1freshdude: I never disputed any economic theory to explaining this problem. However, I state confidently that the banking problems did not start as a result of the drop in oil prices. The CBN before the decline in oil prices did a review of cash reserve ratio of government funds increasing it upward (75%) and most banks couldn't cope with the increase as it affected them greatly even when the prices of oil was still high. This prompted an eventual reduction considering it affects on banks, which was a template that was presented to the previous government to jettisoned the idea as it result in mass sack that is on already. There is no fund as sweet as government fund as it is more stable than oil money ask any marketer in the bank. Now, no government money to loan to government, no government money to recycle, no government money to charge for transaction. Most of this banks charge government agencies COT and other charges but they won't even dare it on oil company's cos what they want is the money to enjoy spread but in government money then enjoy both float and spread. I know and understand the various economic theories and views on this issue but this is my own practical perspective from experience in working in retail focused and public sector focus era of banking. 2 Likes |
Re: Banking Blues In 2016 by 1freshdude: 11:58am On Jan 05, 2016 |
[quote author=ejibaba post=41674188] |
Re: Banking Blues In 2016 by 1freshdude: 12:07pm On Jan 05, 2016 |
ejibaba: I agree with you bro. I agree with you bro. The falling oil price will compound their woes. But i tell you, they only lost access to cheap capital with the new CRR but with the crashing oil price, they will lose invested funds. Their is a difference between losses and access to cheap capital. |
Re: Banking Blues In 2016 by Nobody: 12:22pm On Jan 05, 2016 |
1freshdude: Certainly it will disgrace them completely |
Re: Banking Blues In 2016 by 400billionman: 12:47pm On Jan 05, 2016 |
Tired of reading shiit..
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Re: Banking Blues In 2016 by Austyn44(m): 1:20pm On Jan 05, 2016 |
Nice post. The best rule for investment is the " Umbrella and ice cream " method. |
Re: Banking Blues In 2016 by jpphilips(m): 3:09pm On Jan 05, 2016 |
Sibrah: High interest rate on Treasury bills rendered bankers more useless than the oil boom, the writer only made a speculation. The bankers books are there to see where the highest money was invested, It has never been oil and gas, NEVER!! |
Re: Banking Blues In 2016 by Objektive: 3:23pm On Jan 05, 2016 |
SELECTIVE AMNESIA OP............................HAVE YOU FORGOTTEN THE EFFECT OF SANUSI IN ALL THESE? WHAT SANUSI DID WAS TO UNDO THE WORK OF SOLUDO AND INCREASE JOB LOSES AND THE OPPOSITION WAS CLAPPING FOR HIM BECAUSE IT SUITED THEM............. PLEASE ERASE SOLUDO AND WRITE SANUSI. SAI BABA theV0ice: |
Re: Banking Blues In 2016 by Nobody: 3:27pm On Jan 05, 2016 |
ejibaba:There is no direct correlation btwn Tsa and treasury bills. I wonder where u r getting ur info from |
Re: Banking Blues In 2016 by Sibrah: 3:54pm On Jan 05, 2016 |
jpphilips:It has always been, at least indirectly. Most loans given out are for housing, cars etc and were repaid with easy money from oil earnings. Let's see how many people rush to take loan at 24-30% interest rate with govt struggling to pay salaries. The easy money is taking a short break for now I tell you. |
Re: Banking Blues In 2016 by theV0ice: 4:22pm On Jan 05, 2016 |
Objektive: Obvious Dyslexia.... Can you not see it's a write up culled from a newspaper with reference? Why not take up your grouse with the author? Also the article is about the problems banks will face in 2016, why reduce it to Soludo or Sanusi's problem? Are you Soludo's mouth piece? Why are you bothered about inanities? Pls focus on the substance of the article and stop being petty bothering about personalities.... |
Re: Banking Blues In 2016 by jpphilips(m): 4:35pm On Jan 05, 2016 |
Sibrah: in bankers voice |
Re: Banking Blues In 2016 by jpphilips(m): 4:37pm On Jan 05, 2016 |
Bobbysworld28: Most of the money Banks were investing in TB were govt idle funds, TSA ensured those good days never returned. 1 Like |
Re: Banking Blues In 2016 by jpphilips(m): 4:41pm On Jan 05, 2016 |
Bobbysworld28: Most of the money Banks were investing in TB were govt idle funds, TSA ensured those good days never returned. Also TB is an OMO policy designed to mop up excess liquidity in the Economy, by implementing the TSA, the mop up was exponential hence no need to give chaps attractive interest rates on TB. |
Re: Banking Blues In 2016 by Nobody: 5:23pm On Jan 05, 2016 |
Bobbysworld28: The one you tested or your opinion? Pally leave trash for lawama |
Re: Banking Blues In 2016 by Nobody: 5:24pm On Jan 05, 2016 |
jpphilips: Abeg keep the guy quite...His statement has shown his ignorance |
Re: Banking Blues In 2016 by laprince(m): 5:46pm On Jan 05, 2016 |
Quality article |
Re: Banking Blues In 2016 by mandy4s: 6:41pm On Jan 05, 2016 |
Sibrah: NOW THIS IS THE FIRST REAL CONTRIBUTION TO THE ORIGINAL POST! NICE THOUGHTS FROM YA. THE REST JUST CONTRIBUTED TO THE WOES OF VALUABLE POSTS LIKE THIS NOT BUILDING STRONG FOLLOWERSHIP AND AS A RESULT NEVER GET TO MAKE IT TO FRONTPAGE. PRESENTS A SORE CASE OF DEARTH OF ACADEMIC KNOWLEDGE AND CRITICAL THINKING! |
Re: Banking Blues In 2016 by internetpo(m): 1:22pm On Jan 06, 2016 |
Aviero:werey. u and Olamide R one. lol |
Re: Banking Blues In 2016 by 2sexycom(m): 2:19pm On Jan 06, 2016 |
ishilove, lalasticlala this deserve front page. |
Re: Banking Blues In 2016 by missionmex(m): 8:34pm On Jan 06, 2016 |
An inteligent |
Re: Banking Blues In 2016 by SunkyAde: 7:17pm On Jan 12, 2016 |
I like that idea of getting in any export related business now. Anyone with an idea of where i can get export seminar training. |
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