Am not an expert or even close to 1 but .....the world over. companies are merging...typical e.g AOL, Time warner, Japan & UFJ ,Corus n Brazilian Csn, P&G and Gillete, Barclays bought or merge the woolwich....(i bank with them and i didnt see a bit of difference except they offer more and more services)....

As long as they can meet the requirement and provide the service they are meant to and also boost the nigerian economy, and thats 1 of the main reasons for this consolidation.. boost our economy get projects funded without waiting for mantu and Nnamani( government)  to decide, offer more loans, business partnership, insurance, commnunity development, more branches!! more security for inter banking transfers

banking is about financial muscles just imagine a bank from Ghana come in to but about half of our banks that just need N2bn just to get a license or richard branson coming to buy 49% we cant wait for all these to happen the whole world is moving faster everybody is geting bigger...all the auditing in most of our banks are still being done by pricewater copper and co (international companies)

Now banks are talking about going international...west africa..africa n the rest this is a catalyst for growth in the industry!!
We are not used to changes and thats why we are gettin left behind!!!
Charles Soludo either dreaming or not is sayin what will eventually happen take-overs and mergers its alreading happening in therest of the world


there should be room for community banks though for the little gaps in da market!



read some positives : http://www.kc.frb.org/PUBLICAT/ECONREV/PDF/1q01keet.pdf

There is nothing particularly bad about 2 small banks or a consortium of banks coming together to grant a loan for a mega-project that a single bank cannot finance. All you need to do as a regulator is to facilitate the process to make it smoother.

And for the daily fluctuations in the deposit level of a bank, there is the inter-bank or short term loan market arrangement in which banks that temporarily have excess money in their coffers can lend it overnight to other banks that temporarily have a shortage of money. So even if all the banks are small, they can fearlessly participate in large transactions and borrow extra money any day in which a lot of withdrawals happen to coincide.

Mergers and acquisitions are happening all over the world but they are not forced. Bank managers will only merge when they can percieve that this will give them an advantage over other banks. What the CBN has done is simply not right. It is bad for smaller banks that were doing well.

I am still not happy that a bank like UBA, instead of being driven out of the market or being forced to render a higher level of service, has been given the opportunity to swallow a progressive bank like STB that didn't really need their money.

Seun,
Let me give u an INSIDER gist. In reality UBA did not buy STB. STB rather bought into UBA after the board wrangling or trouble the bank (UBA) had with their former Chairman (Hakeem Bello Osagie).
Ask any top level STB staff. they will tell you (off the record).

Seun:

Mergers and acquisitions are happening all over the world but they are not forced. Bank managers will only merge when they can percieve that this will give them an advantage over other banks. What the CBN has done is simply not right. It is bad for smaller banks that were doing well.

I am still not happy that a bank like UBA, instead of being driven out of the market or being forced to render a higher level of service, has been given the opportunity to swallow a progressive bank like STB that didn't really need their money.

Seun you are wrong on this again! What CBN did was neither wrong nor right because you have to look at the Nigerian context. I have told you before that most of the banks were marginal players which in essence made the cost of doing banking in Nigeria higher and more problematic than necessary. If Soludo succeeds (which I pray for) then you will see ppl coming from Europe America Asia coming to see what he's done. Some will even earn their PhDs from this. Now, would you be interested if I told you that old european nations are seriously studying new economies suchs as Estonians' to see how they could copy their successful tax regime? Nigerians could be smart too. Apart from the fact that our health infrastructure is bad, do you know that our health systems as a whole (referrals) is better than UK's? So instead of making opinions about what you don't know, just CHILL for Soludo and also pray for his success. No one is going to miss many of those banks.

And as per UBA/STB. UBA bought STB? U must be joking. Man, STB bought UBA and just retained UBA's name. Apart from the name and head office, what of UBA do you still have remaining? Logo, mission, vision, color, management, board have all disappeared.

I totally may not agree with Soludo's idea of recapitalisation but i was beginining to get fed up with number of banks that were springing up all over the country. Despite the fact that i don't support forced mergers and acquisitions( subcribing to Seun's reasoning), if this would strenghten the financial sector of the economy, then i am 100% behind the CBN's ideology. But then other questions arise, from my understanding of the recapitalization process, all banks must meet a 25bn capital base and those that do not are scrapped. Then what happens after that is what i do not get . How are banks to compete amongst themselves? Just heard rates of deposits have declined drastically so whats the incentive for depositing funds in the bank?In a bid to maintain their capital base, will loan rates not accelerate and deter meaningful entrepreneurs from approaching financial institutions for funds.

Here is a comprehensive list of all the banks and the ones that seized to exist

http://www.nigeria-law.org/BanksInNigeria.htm

Thanks for the link.

well,Charles soludo's intention is a good and bright one.or should i say a bound step taking in d right direction.but my argument is that,with dis present recapitalization are we going to experience a distress free banking industry .if i may ask is dis d last of commercial bank recapitalization we will experience at least for dis decade.

This recap will help fish governors that will eat more they can handle while in office so its a good idea. I am totally behind his economic reforms for nigeria. Go soludo

seun see i need job pls and i'm desperate for a job i'm an OND holder in statistics and i'm also and a certificate that is equivalent to BSc in electricial technology from Obafemi Awolowo University pls

@igbestu22
You might wanna visit the job section of the forum.