na today? stimulus ko, stimuli ni.

Am i Lost?? I thot the whole wahala in the Banking sector was because they gave out too much? So now again you want to encourage massive lending

Was that not the samething Soludo encouraged and Sanusi said he did a bad job, at least he could not have known that the margin loans will go bad.

SANUSI = CONFUSED!

paddy_lo:

u dont get it do u. . SANUSI was appointed cause he was a fulani man and a muslim
he is from the get go a beneficiary of nepotism and the incomnpetence of yara dull

therein lies the problem with Nigeria

You have implicitly made my (and Ibime's) point that your disapproval of Sanusi is based on his ethnicity and not on his (in)actions since he took office.

rebranded:

Am i Lost?? I thot the whole wahala in the Banking sector was because they gave out too much? So now again you want to encourage massive lending

Was that not the samething Soludo encouraged and Sanusi said he did a bad job, at least he could not have known that the margin loans will go bad.

SANUSI = CONFUSED!

another misrepresentation of facts. Where did the CBN say they wanted to encourage 'massive' lending

biina:

another misrepresentation of facts. Where did the CBN say they wanted to encourage 'massive' lending

Dis guy, do u work in CBN or lick Sanusi's dick

Nobody is right but you. U get problem o!!!!!1

freezy:

Not to mention names, the man on Ajose Adeogun and the Head of the so called largest bank in Nigeria are no exceptions. Proof? There is little that can be brought to the table now. But if the ad-hoc audit which was conducted on the affected fellas with the same intent was conducted on these guys, i'm sure the results will be at par. But the hammer dint come down on them and they lived to fine tune loads. Note that i did not mention nadda about any nothern agenda.

You have no evidence yet you claim that these people are guilty.You have no proof andd yet you conclude that the ad hoc audit overlooked their ills. So please, on what are your allegations based?

Fitch ratings are crap to me now. If they rated high back then, that means they aint gotten any tool to detect such rot, they could go to **** with their ratings

Fitch ratings are based on published results and indices. Its almost impossible for them to detect doctored books, that is the responsibility of the CBN.

Yes, MDs can be sacked with people questions answered without so much negative verbal attacks. Recall the shooting idea?

I dont really see how comments about sacked corrupt CEOs (e.g. they deserve to be shot) is inimical to the sector, as the comment was not regarding the sector itself nor any incumbent executive.

Wrong.
The exposure to the oil & gas sector in 2008 was one of the sources of Mr Sanusi's 'inappropriate loans' given out by banks which had or was going bad. That did not cause the fuel scarcity. Even at that, the marketers were still being financed by the banks till the last week of September 2009. The banks were never at any point insolvent but refused to give out funds untill the the issues of the tanker drivers' purpoted sack over the inability of a parent company to continue paying their wages due to the fact that the FG has not paid what was owed this company. That my friend, was the start of the fuel scarcity.

My point was about availability of funds to the marketers, your argument above simply contradicts your earlier statement that the fuel scarcity originated from banks not financing marketers. I only explained why they couldn't, cos if they had not been hit the stock market crash and oil price decline, they wouldnt have become illiquid.

Me sef:

Dis guy, do u work in CBN or lick Sanusi's manliness

Nobody is right but you. U get problem o!!!!!1

Why cant you simply provide evidence to support your earlier claims?

biina:

another misrepresentation of facts. Where did the CBN say they wanted to encourage 'massive' lending

Oga did u read the article at all, pls also check the Original Post

"We will reduce the level of interest the banks earn with us to encourage them to seek other areas, which means lending," Mr. Sanusi said

http://234next.com/csp/cms/sites/Next/Money/Business

biina:

Why cant you simply provide evidence to support your earlier claims?

Guy did you read the title of the post also at all??

Why are u defending Sanusi blindly, abi u be Sanusi?

rebranded:

Oga did u read the article at all, pls also check the Original Post

"We will reduce the level of interest the banks earn with us to encourage them to seek other areas, which means lending," Mr. Sanusi said

http://234next.com/csp/cms/sites/Next/Money/Business

and where is the 'massive' you included in your earlier representation or should banks not lend again.

rebranded:

Guy did you read the title of the post also at all??

Why are u defending Sanusi blindly, abi you be Sanusi?

my issue is with the added adjective of 'massive' and likening it to the unchecked lending we had post consolidation, which was problem not because of the volume but the areas (stock market and oil & gas) to which the facilities were predominantly extended.

biina:

my issue is with the added adjective of 'massive' and likening it to the unchecked lending we had post consolidation, which was problem not because of the volume but the areas (stock market and oil & gas) to which the facilities were predominantly extended.

As carefully as Sanusi may choose his words, we all know he is trying to encourage lending volume the way it used to be, I am not aware that CBN increased their rates to Banks so the logical conclusion is lending dropped below its former level (with the same rates from CBN) and now Sanusi is trying to pack up the MESS he started by looking for ways to encourage 'massive' lending again.

From time banks will not lend to the common man because they are high risk customers, so basically its still to their former target(customers), i stick to the fact that Sanusi is very confused!

rebranded:

As carefully as Sanusi may choose his words, we all know he is trying to encourage lending the way it used to be, I am not aware that CBN increased their rates to Banks so the logical conclusion is lending dropped below its former level (with the same rates from CBN) and now Sanusi is trying to pack up the MESS he started by looking for ways to encourage 'massive' lending.

From time banks will not lend to the common man the risk is too high, so basically its still to their former target(customers), i stick to the fact that Sanusi is very confused!

You  seem to be able to read sanusi's mind. That is interesting to say the least
Stick to the facts and dissuade from misinformation. Down the line, same would come back to accuse Sanusi of being responsible for the effect of their earlier misinformation.

biina:

You seem to be able to read sanusi's mind. That is interesting to say the least
Stick to the facts and dissuade from misinformation. Down the line, same would come back to accuse Sanusi of being responsible for the effect of their earlier misinformation.

Biina please read the Next article again, you will see its clearly stated there,

You seem to be the only person i have met in support of Sanusi, i wonder why

rebranded:

Biina please read the Next article again, you will see its clearly stated there,

You seem to be the only person i have met in support of Sanusi, i wonder why

The link you provided is bad.
Still, is this not the article you are referencing http://234next.com/csp/cms/sites/Next/Home/5534874-146/cbn_moves_to_stimulate_the_economy.csp ?

Excerpt:
The CBN left the benchmark interest rate unchanged at 6.0 percent on Tuesday but cut its deposit rate in an effort to encourage banks to lend again after last year's bailout. The bank lowered its deposit rate to 1 percent from 2 percent to try to stimulate lending but left the monetary policy rate at the same level it has been since last July.
"We will reduce the level of interest the banks earn with us to encourage them to seek other areas, which means lending," Mr. Sanusi said.
Financial analysts said that they expected no change since the CBN is concerned about low monetary growth being a harbinger of weaker GDP. Wole Famurewa, the head of research, PHB asset management said, "We did not expect a rate change today even though inflation is inching higher. The focus now is on getting credit flowing again to the wider economy and increasing rates doesn't support that.
"The central bank must have observed that banks have been putting a lot of their money in low risk assets which includes central bank deposit and treasury bills.
"From the CBN announcement today, it's obvious the central bank is trying to encourage banks to lend. This is part of the CBN's broader plan to get banks to lend again."

where does it say that the CBN wants to encourage 'massive' and/or lending to the stock market and oil & gas like we had under soludo?

Sanusi does more work talking and giving needless speeches than thoroughly thinking through his policies b4 dashing out.Banks are not lending again because of his thoughtless rash decisions.Until we starts seeing results,he can continue to swittalk to himself! Schew

@Binna,

I would like to know your view on Sanusi, looks like you believe he is doing the right thing and Soludo was a flop

Are u aware that about 50% of the jobs soludo's policies helped create have been lost. Apart from that the naira lost value more to 150

We are hearing inflation rate is increasing, Please tell me one positive thing Sanusi has done since he got there, and pls dont tell me those banks would have gone down, because i can assure you soludo wont allow that to happen. Plus Soludo is a Professor of Economics not some Msc Islamic or Risk Mgt man. To start with Sanusi is not even qualified for that post, what does he know about the Economy? the only things he mentions is banks banks, I have not heard him for once talk about inflation, employment, exchange rate. I rest my case

rebranded:

@Binna,
I would like to know your view on Sanusi, looks like you believe he is doing the right thing and Soludo was a flop

I believe Soludo's appointment was premature, and a simple case of putting the cart before the horse. What the system needed (and Soludo also identified this) was the sanitation before the consolidation. Nigeria would have been better served if we had a 'Sanusi type' with Soludo as deputy governor, and Soludo taking over once the sanitation was done. Unfortunately, we ended up with castles built on sands and which were bound to collapse.

Are u aware that about 50% of the jobs soludo's policies helped create have been lost.

The bulk of that growth could not be sustained. The banks were investing in the stock market and they lost their capital when the market collapsed. All these occurred before Sanusi assumed office. Sanusi only made them declare their true position.

Apart from that the naira lost value more to 150

The current central official rate is 147.81 and has always been in that 145-155 bracket since Sanusi took over. The exchange rate is more dependent on crude oil prices than CBN policies.

We are hearing inflation rate is increasing, Please tell me one positive thing Sanusi has done since he got there, and pls dont tell me those banks would have gone down, because i can assure you soludo wont allow that to happen.

The banks had already failed before Soludo left office, the reasons they were still functioning was that the creation of the EDW by Soludo essentially allowed them to borrow indefinitely with the debt being guaranteed by the CBN, and that they doctored their books to hide their true losses.

Plus Soludo is a Professor of Economics not some Msc Islamic or Risk Mgt man. To start with Sanusi is not even qualified for that post, what does he know about the Economy? the only things he mentions is banks banks, I have not heard him for once talk about inflation, employment, exchange rate. I rest my case

Sanusi was the MD of FBN before his appointment as CBN governor, and while he might not have the paper qualifications that Soludo has, he has the experience that Soludo lacked. It was Soludo's persistent focus on grandiose economic policies that let things degenerate so badly. Beyond its role as a fiscal policy maker, the CBN has a strong supervisory role to play and under Soludo and his predecessors, the CBN had always failed to do so.

We need to leave tribal sentiments out of these issues. I am not a northerner, but as someone who has followed the sector for a few decades, I approve of what Sanusi is doing because it is what should have been done several year ago, even before Soludo was appointed. Does that mean I think Sanusi is perfect? No, but I will support any of his actions that are feel are in the best interest of the country and particularly the masses. We need to judge peoples actions and not their background, religion, or ethnicity.

The guy is about clearing out the rot in the CBN, another move that has been long over due http://www.businessdayonline.com/index.php?option=com_content&view=article&id=8999:cbn-in-self-cleansing-gives-impetus-to-sector-reforms&catid=1:latest-news&Itemid=18

If you want a description of the issues and Sanusi's proposed reforms then read http://www.cenbank.org/OUT/SPEECHES/2010/THE%20NIGERIAN%20BANKING%20INDUSTRY%20WHAT%20WENT%20WRONG%20AND%20THE%20WAY%20FORWARD_FINAL_260210.PDF

Generally, effective stimulation would trickle down to the masses via job creation, and not through the bank lending you money. More relevant in this case is the proposed financial support for the power sector, which should result in improved power supply and thus improved productivity in the economy, and, increased standard of living for everyone

easy

sanusi in his attempt at sanitizing the industry has ensured mass unemployment in the industry

what it means in essence is that
bank reforms = unemployment = stable financial services industry

thats a policy conflict as far as im concerned.

now youre saying he wants to ensure bank lending to stimulate aggregate demand innit? if the citizenry are unemployed, i dont see how that can stimulate anything; the only thing that it will ensure is the ability of the banks to write back their debts and ensure a better balance sheet. for the economy to improve after sanusis deeds, their has to be a proactive fiscal policies to improve on the SOCs and aggressive programs to serve as palliatives to the sacked worked. ensureing the banks lend cannot stimulate for now cos teh banks are still recuperating and are only tring to recover loans for now

biina:

@Roadstar
So all you are saying is simply speculations. You have no facts and yet you demand that Sanusi comes clean?

I am using sanusis facts where he says that the consolidation in general was a sham and that banks built their capital base on depositor funds.
The thing is points u sometimes use to boost ur position can sometimes be used against you.

You are convinced that Sanusi is not doing a good job, yet you have no evidence to the contrary.

I never said so. You are just bent on defending Sanusi even when theres no need to.
Im just saying that whether good or bad his actions have caused rippled in the banking sector and will take time 2 settle.

24 banks were audited and 14  were found to be adequately capitalized and liquid, and 10 were found to be under-capitalized (marginal or otherwise). But you now claim that all are under-capitalized and that Sanusi said so?

Sanusi taking a blanket swipe at the consolidation excersise as b eing a sham is indirectly saing that the exercise this not lead to well capitalised banks.

Without any evidence, you claim that the 'rot' was widespread.

Sanusi implied so.

The level of management changes varied from bank to bank, yet in total, the CBN induced CEO changes (including tenure limit) occurred in about 10 banks, most of which were distressed and yet you want to categorize the entire sector as being under management change.

You have a way of trying to misquote me.
A specifically pointed out that 12 which is half of the banks are under management change.
Anything that affects half of the sector can be said to affect the sector as a whole.

The distressed bank hiring is a sign of growth and not stability or is downsizing not a tool for improving profitability, or you think it only applies to reducing losses?. Hasn't the number of people sacked been reducing each week? You have no evidence to suggest that the downsizing will continue beyond September.

Just like in Macro-economics. Job rise figure show that an economy is improving.
Job losses show the reverse.
Banks that are still firing workers are at the least not yet stabilised yet.
You also dont have any evidence that it will not continue beyond september

The fitch report of february 2010 says the sector is improving. when was the last fitch rating report you received?

The same fitch that was hired by CBN to rate the banks
As a fall out of Sanusis action,s Nigeria had a downgrade by S&P and hasn't improved it since then.
Dont confuse things here.

I am not hear to talk of the long term outlook but sanusi should admit that there has been an impact on the banks of his reforms.
Instead of giving this impression that all has been contained and business van go on as usual.
His inexperience did not enable him heed to the warning and now he is trying to mask the effects.

Biina im waiting for you ooo

lets move from football conomics to pure macro economics

i have ur time today

biina:

You have no evidence yet you claim that these people are guilty.You have no proof andd yet you conclude that the ad hoc audit overlooked their ills. So please, on what are your allegations based?

Of course there are no evidences from the CBN. Almighty Sanusi is the Judge, Counsel and Jury. He has determined who to be examined and who should not, thus the evidence available are the one he wanted everyone to see.

biina:

Fitch ratings are based on published results and indices. Its almost impossible for them to detect doctored books, that is the responsibility of the CBN.

Still don't give a damn bout 'em ratings. See, in the old days of practicing chemistry in the Laboratory of Nigerian Breweries, the analyticals of the water used was very critical. However this process is very tedious. So the Lab hands at times doctor results so they could leave office in time. However, we have ways of doing simple cross referencing and we know if the results are in place or not! Let Fitch come up with sumn like that and then to me their ratings might hold water.

biina:

I dont really see how comments about sacked corrupt CEOs (e.g. they deserve to be shot) is inimical to the sector, as the comment was not regarding the sector itself nor any incumbent executive.

Oh, really! What about hate? Which could have the possibility of a personal vendetta?

biina:

My point was about availability of funds to the marketers, your argument above simply contradicts your earlier statement that the fuel scarcity originated from banks not financing marketers. I only explained why they couldn't, cos if they had not been hit the stock market crash and oil price decline, they wouldnt have become illiquid.

And your explanation was incorrect.

Biina, don't qoute me out of context. That is a leading statement. Go back to what I posted earlier. . .

Lastly, bros biina, let us not forget that the lack of funding for the major marketers from banks was the original cause of the fuel scarcity (Ignore my hammering so much on fuel scarcity. . . It's just that it is so difficult to get fuel these days and its driving me nuts!!!       )

Why did the banks refuse to fund?

Even at that, the marketers were still being financed by the banks till the last week of September 2009. The banks were never at any point insolvent but refused to give out funds untill the the issues of the tanker drivers' purpoted sack over the inability of a parent company to continue paying their wages due to the fact that the FG has not paid what was owed this company. That my friend, was the start of the fuel scarcity.

Now how did I contradict what I said earlier? Lack of funding does not mean the can't fund, they REFUSED to fund! That is not so difficult to understand, is it?

On this point, you arguement that over exposure was the reason for the inability to fund, I say again, it is outrightly wrong. For Chrissake, the questionable exposure was in 2008 & and banks still funded till September 2009.

Lastly, bros biina, let us not forget that the lack of funding for the major marketers from banks was the original cause of the fuel scarcity (Ignore my hammering so much on fuel scarcity. . . It's just that it is so difficult to get fuel these days and its driving me nuts!!! )

are u serious?
i thought the reason was because they were owed a lot of money by the NNPC

freezy:

Of course there are no evidences from the CBN. Almighty Sanusi is the Judge, Counsel and Jury. He has determined who to be examined and who should not, thus the evidence available are the one he wanted everyone to see.

if there is no evidence, then on what basis is your conclusion of their guilt and your accusation of complicity on the part of the CBN?

Still don't give a damn bout 'em ratings. See, in the old days of practicing chemistry in the Laboratory of Nigerian Breweries, the analyticals of the water used was very critical. However this process is very tedious. So the Lab hands at times doctor results so they could leave office in time. However, we have ways of doing simple cross referencing and we know if the results are in place or not! Let Fitch come up with sumn like that and then to me their ratings might hold water.

Unfortunately Fitch cannot as they are not the supervisory body for the Nigerian (or any other country's) banking sector. It is the user of the ratings that should take the rating in context.

Oh, really! What about hate? Which could have the possibility of a personal vendetta?

against who? the sacked individuals or the banking sector? The comments were made after the executives had been sacked and the reason for their sack made known. Its like saying comments about Soludo or any other past bank executive will damage the perception of the banking sector. I  personally dont see how it should and I doubt we will ever agree on this.

And you explanation was incorrect.

Biina, don't qoute me out of context. That is a leading statement. Go back to what I posted earlier. . .

Lastly, bros biina, let us not forget that the lack of funding for the major marketers from banks was the original cause of the fuel scarcity (Ignore my hammering so much on fuel scarcity. . . It's just that it is so difficult to get fuel these days and its driving me nuts!!!       )

Why did the banks refuse to fund?

Even at that, the marketers were still being financed by the banks till the last week of September 2009. The banks were never at any point insolvent but refused to give out funds untill the the issues of the tanker drivers' purpoted sack over the inability of a parent company to continue paying their wages due to the fact that the FG has not paid what was owed this company. That my friend, was the start of the fuel scarcity.

Now how did I contradict what I said earlier? Lack of funding does not mean the can't fund, they REFUSED to fund! That is not so difficult to understand, is it?

On this point, you arguement that over exposure was the reason for the inability to fund, I say again, it is outrightly wrong. For Chrissake, the questionable exposure was in 2008 & and banks still funded till September 2009.

Correct me if I 've misunderstood you
1. You said the fuel scarcity was caused by lack of funding to major marketers by the banks
2. You then claimed that banks only refused to fund marketers in September 'cos of the the issues of the tanker drivers' purported sack (strike?) over the inability of a parent company to continue paying their wages due to the fact that the FG has not paid what was owed this company.

Q: how does tanker drivers going on strike influence the willingness of banks to lend to marketers? Was there a similar correlation at other times in the same year the tanker drivers have gone on strike?

My position is that the eroded capital and the subsequent CBN limit on exposure to oil & gas is what caused the lack of funding to the marketers. The unpaid N70 billion is the marketers excuse for being in debt (which did not start in September) but it was the new CBN policy  and already eroded capital that made the bank refuse to continue lending.

see
http://allafrica.com/stories/200906230025.html
http://allafrica.com/stories/200908170346.html
http://allafrica.com/stories/200909080195.html

RoadStar:

I am using sanusis facts where he says that the consolidation in general was a sham and that banks built their capital base on depositor funds.
The thing is points u sometimes use to boost your position can sometimes be used against you.

which facts? You are simply expanding on comments and statements, and extrapolating your own interpretation to themt out of context.
We have already published details of the extent of insider abuse in several of the banks.  CEOs set up Special Purpose Vehicles to lend money to themselves for stock price manipulation or the purchase of estates all over the world. One bank borrowed money and purchased private jets which we later discovered were registered in the name of the CEO’s son. In another bank the management set up 100 fake companies for the purpose of perpetrating fraud. A lot of the capital supposedly raised by these so called “mega banks” was fake capital financed from depositors’ funds. 30% of the share capital of Intercontinental bank was purchased with customer deposits. Afribank used depositors’ funds to purchase 80% of its IPO. It paid N25 per share when the shares were trading at N11 on the NSE and these shares later collapsed to under N3. The CEO of Oceanic bank controlled over 35% of the bank through SPVs borrowing customer deposits. The collapse of the capital market wiped out these customer deposits amounting to hundreds of billions of naira. The Central Bank had a process of capital verification at the beginning of consolidation to avoid bubble capital. For some unexplained reason, this process was stopped. As a result, we have now discovered that in many cases consolidation was a sham and the banks never raised the capital they claimed they did.
How does 'many' become 'all' or that the sham went beyond the penalized banks, and more importantly become all banks being under-capitalized and insolvent?

I never said so. You are just bent on defending Sanusi even when theres no need to.
Im just saying that whether good or bad his actions have caused rippled in the banking sector and will take time 2 settle.

so the question becomes how long? I feel  by 4th qtr the sector should be on the rise, and 2yrs down the road is enough for us to be back to business as usual.
You on the other hand seem to feel things are yet to get worse?

Sanusi taking a blanket swipe at the consolidation excersise as b eing a sham is indirectly saing that the exercise this not lead to well capitalised banks.
Sanusi implied so.

You seem to be equating adequate capitalization of the banks to consolidation. Adequacy of capitalization is dependent on the level of exposure, and while Sanusi said that the CBN was not diligent enough in its handling of the capitalization, the audit report said that 14 banks were adequately capitalized. The only fair conclusion that can be reached from his statements was that some banks were not genuinely as capitalized as they claimed. The level of severity cannot be ascertained just from those comments.

You have a way of trying to misquote me.
A specifically pointed out that 12 which is half of the banks are under management change.
Anything that affects half of the sector can be said to affect the sector as a whole.

8 executives were forcefully changed by the CBN, while the deadline for tenure limit change is july 10 and I know of it affecting only 3 banks (zenith, sky and UBA). who is the 12th? Succession of the top executive is not necessarily equal to a management overhaul. Even so, half is far from full, and you cannot make any more case for half-full than for half empty.

Just like in Macro-economics. Job rise figure show that an economy is improving.
Job losses show the reverse.

I disagree. While job creation can be used as an indication of growth (real or otherwise) in a company or sector, job losses can simply be a move at improved efficiency and profitability.

Banks that are still firing workers are at the least not yet stabilised yet.

So how many banks are we talking about? Is FBN, Zenith and others who passed the audit have above normal turnover? You cannot use a handful of the banks to generalize for the whole sector.

You also dont have any evidence that it will not continue beyond september

I agree that I dont, but the indices and history point towards it not continuing beyond that. Once the AMC  (which is supposed to be operational by then ) absorbs the bad debts, I dont see what else could pull the banks further down.

The same fitch that was hired by CBN to rate the banks
As a fall out of Sanusis action,s Nigeria had a downgrade by S&P and hasn't improved it since then.
Dont confuse things here.

S&P downgraded Nigeria's outlook rating from stable to negative in March 2009 (before sanusi's appointment) stating
on the basis of dwindling revenues attendant on collapsed oil prices as well as due to what it described as the "unorthodox policy measures" adopted by government. The international rating agency also revealed that the negative outlook took into account "a continued worsening of the business environment and a deterioration of Nigeria's balance sheet." "With Nigeria overwhelmingly reliant on oil," the agency concluded, "its 2009 budget projections may be difficult to attain given longstanding constraints in output stemming from unrest in the Niger Delta." The report also expects the quality of banks' credit and security portfolios to weaken given the turbulence in the capital market and "sudden slowdown in economic growth" - arising from a combination of dwindling government revenues and a sharp decline in bank lending growth.
The rating agency said the rating would not improve in the near future. see http://www.thebanker.com/news/fullstory.php/aid/6497/S_P_downgrades_Nigeria_92s_outlook.html

The August downgrade was just a continuance and the associated comments were
Nigeria has a stable outlook, stressing that the financial, economic and political risks are balanced by a strong external and fiscal balance sheet. The lowering of the sovereign rating on Nigeria reflects our view of the government's reduced fiscal flexibility due to costs associated with its recent bail-out of five large domestic banks, and also the fall-off in government oil revenue. In our opinion, the central bank's action has begun a welcome restructuring of Nigeria's banking system, but it also reveals deep problems in Nigeria's credit markets, with the extent of problem loans beyond our previous estimates,"
So I dont see how it was a fallout of Sanusi's actions.

I am not hear to talk of the long term outlook but sanusi should admit that there has been an impact on the banks of his reforms.
Instead of giving this impression that all has been contained and business van go on as usual.
His inexperience did not enable him heed to the warning and now he is trying to mask the effects.

Nobody is saying there has been no impact, but you would like us to believe that things are worse than the CBN says they are. Yet you have not provided any evidence to this effect.

offtopic - i work in the downstream oil and gas industry -

the fuel scarcity is not about banks lending to oil marketers per se - the oil marketers are tired of being short changed by the FG - you bring in product and the fecking nnpc owes you for months beyond the date they commited to reimburse you.

tkb417:

Biina im waiting for you ooo

lets move from football conomics to pure macro economics

i have your time today

see dis red onigbese of an Obertan. We will soon auction your dear indebted club in the beer parlour.

tkb417:

easy
sanusi in his attempt at sanitizing the industry has ensured mass unemployment in the industry

mass unemployment? sounds like an hyperbole. what is the capacity of the industry and how many people have been sacked?

what it means in essence is that
bank reforms = unemployment = stable financial services industry
thats a policy conflict as far as im concerned.

bubble bust => bank reforms => pruned redundancy=> stable financial services industry=> genuine growth

now youre saying he wants to ensure bank lending to stimulate aggregate demand innit? if the citizenry are unemployed, i dont see how that can stimulate anything; the only thing that it will ensure is the ability of the banks to write back their debts and ensure a better balance sheet. for the economy to improve after sanusis deeds, their has to be a proactive fiscal policies to improve on the SOCs and aggressive programs to serve as palliatives to the sacked worked. ensureing the banks lend cannot stimulate for now cos teh banks are still recuperating and are only tring to recover loans for now

If the banks lend to the economy, wont the industry create jobs?
I do agree that it is not comprehensive enough of an approach but it is a step in the right direction, and might be better to see the impact of reduce deposit rates first before implementing more complex policies. This is the cheapest tool with a short response time at the disposal of the CBN

tkb417:



what it means in essence is that
bank reforms = unemployment = stable financial services industry

that's a policy conflict as far as I'm concerned.

what's ur preference dawg?
bank reforms =>unemployment <=stable financial services industry a
bank reforms => unemployment => stable financial services industry b
bank reforms => employment <= stable financial services industry c
[s]bank reforms => employment => stable financial services industry d[/s] it will take time for job growth indicator to be seen

oyb:

offtopic - i work in the downstream oil and gas industry -

the fuel scarcity is not about banks lending to oil marketers per se - the oil marketers are tired of being short changed by the FG - you bring in product and the fecking nnpc owes you for months beyond the date they commited to reimburse you.

thank you
i made that point earlier. The Markerters are tired of being owed and they want an end to that

the scarcity isnt because of any bank lending

see dis red onigbese of an Obertan. We will soon auction your dear indebted club in the beer parlour.

we are preparing a bid of 1.2 billion to take our club away from debts
i told you, we can never be burdened by debts cos UTD would be bought by money bags (no necessarily sheiks now)
i told ya

mass unemployment? sounds like an hyperbole. what is the capacity of the industry and how many people have been sacked?

assume 20,000 have been sacked. what do you call that?
thts a mass sack!!!

20,000 added to the growing list of the unemployed is a disaster

bubble bust => bank reforms => pruned redundancy=> stable financial services industry=> genuine growth

hahahahaha
genuine growth = fat balance sheet is not equal to developmental growth

the real growth in the economy isnt about GDP a healthy balance sheet, its about the welfare of the people
we cant say we are having a genuine growth when the general populace are without jobs

no sane CEO should sack to mitigate redundacy
thts what some of the captains of the financial services industry in the US said to me ( and some enlightened financial technocrats in a seminar recently) and that is very true