HIGHLIGHTS OF BANKERS COMMITTEE FEEDBACK

 Impact of Coronavirus resulting in global oil price nosedive and contraction in our reserves. But he believes this is temporary and enjoins bank to be positive.

 Devaluation - CBN will defend the Naira proactively. All those awaiting devaluation will wait in vain.

 NAME & SHAME ANNOUNCEMENT: Six (6) Banks breached FX rules on using wired funds to finance banned/prohibited items and sanctions/penalties will be passed against the banks.

 Another sets of 14 banks violated FX rules

 The Governor warned seriously that banks should guard their operations seriously and thread cautiously in FX market. That any bank that allows customers to do 3rd party transactions without clear purpose/rationale constitutes contravention with penalties

 Continuous reporting of suspicious transactions by banks constitute a breach since the bank knows it is suspicious and it

continues to report same to NFIU when it should have dealt with the issue.

 CRR shall continue at discretionary application and can be as high as 30%/40% if CBN detects that the bank bids for OMO.

 That OMO has now become POISON as against HONEY that it used to be. Banks are enjoined to remove its eyes from OMO and

play responsibly.

 Desist from taking advantage of CHEAP LIQUIDITY to make illicit profit.

 CRR of Merchant Banks to move from 2% to 27.5%. Any merchant bank that can’t cope should surrender their license and opt for

commercial banking license.

 LDR adjustments shall now be done to remove all short-tenured facilities granted for 90/180 days.

CBN enjoins bank to lend long-term.

 Rates on Savings account to be reduced to near 1%. CBN advice in this regard to be expected soon.

 All banks should send sample of Contract Letter issued to outsourced Staff + SLA with the company being used to run outsourced staff.

 Banks should note and be guided by the CBN circular in respect of laying off staff that is more than 5. This requires CBN notification and approval going forward.

https://cdn-af.feednews.com/news/detail/a151e0d3e02be67d24f1d77a8ea02bce

I wonder how long this can be sustained considering all the forces working against it and the fact that most won't even realise the consequences until its too late.

Pun not intended! There's pain in the pipelines.