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Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by EzeUche1(m): 3:28pm On Jun 27, 2011 |
Sanusi will ruin economy if allowed to carry out liquidation of eight rescued banks http://www.vanguardngr.com/2011/06/sanusi-will-ruin-economy-if-allowed-to-carry-out-liquidation-of-eight-rescued-banks/ |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by naijaking1: 3:35pm On Jun 27, 2011 |
Thanks for the article, but very soon some boko haram of N/L members will accuse you of all sorts of crime. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Pukkah: 3:48pm On Jun 27, 2011 |
EzeUche!: It's good that this is coming from another source. This has been my opinion. Sanusi was too much fixated on fighting the former MDs and taking over the banks that he ignored important steps that he should have followed. The hasty manner in which he acted also injured the economy in no small way. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Pukkah: 3:59pm On Jun 27, 2011 |
EzeUche!: Of course Sanusi's pastime is making inflammatory statements and causing panic all over the place. He has overheated the system several times and more and more people are beginning to ask questions: is the economy better today than it was before he took over? If a fleeing armed robber runs into a crowded market, does the policeman open fire on him and kill many innocent people in the process or let him go and look for ways to get him with minimum collateral damage to the system? EzeUche!: Some day, whether now or in the future, I hope we would have a good insight to what actually transpired with respect to these so-called reforms. For now, an independent enquiry that will investigate all what went wrong is not out of place to institute. This is also a reason why one man should not have so much powers. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by EzeUche1(m): 4:00pm On Jun 27, 2011 |
I fear this man is not good for business and investment. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by isuomo: 4:12pm On Jun 27, 2011 |
He has ruined the economy already, those of us in the private sector know that already. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Kasiem2: 4:22pm On Jun 27, 2011 |
When a leader thinks that he's ever right and supreme in his thinking thats what we see. What's the difference between this man and mugabe? Always taking and carrying out decisions without calculating the effects that'll have on the society( unpragmatic reformer). |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Pukkah: 4:25pm On Jun 27, 2011 |
EzeUche!: Sadly, he's not. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Soundmind(m): 11:07am On Jun 28, 2011 |
I believe this man Sanusi is a product of "School of Mugabe". If in any mistake he becomes president of this country, he will order every one to eat once a day except his cabinet members. He is so much in a hurry that he do not even look at the effect of his past decisions. God help us. Financially, he is more dangerous than Boko Haram |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by matoyeh(m): 11:10am On Jun 28, 2011 |
Its so painful! Sanusi should understand all these affect some inno pple as wel |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Kx: 11:13am On Jun 28, 2011 |
Boko Haram uses bombs, Sanusi uses what his position empowers him with. While Boko Haram clamours for soveriegn sharia state, Sanusi clamours for Islamic banking Ultimately and in both scenarios, the nation suffers. Incidentally, both interests have strong islamic background |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by member479760: 11:17am On Jun 28, 2011 |
where is Mr. President? the man dey fair to rule walahi. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by chines4(m): 11:22am On Jun 28, 2011 |
Sanusi's utterances and actions have crippled Nigerian economy, that why I want to know the new Finance Minister. May be he/she can be able to put this man in check |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Musiwa42: 11:22am On Jun 28, 2011 |
how can you Liquidate banks. what they should is bump money from the cbn into the banks. you dont want too much of merges. it create monopoly in the economy . on cement production. open the market to everybody. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by chamber2(m): 11:24am On Jun 28, 2011 |
Even as naive as i was a few years ago, i maintained that sanusi was/is not a good choice for the cbn governorship.A man who is more or less a religious leader is no fit for a cbn position.But what do you expect in a country without merit system, where everyone talks about federal character principle and complete observance of the quota system without regard for merit and integrity. Sanusi is as corrupt as the CEOs he prosecuted.If not, tell me how an ordinary manager in a Nigerian premier bank was promoted to the position of the MD within the shortest period of time, even though he had spent a little time in the banking sector and subsequently became the CBN governor.This swift promotion is very typical of the north, before it was Ribadu, and now it's sanusi and the rest. Between 2009-11, all indices of growth in Nigeria have dwindled.Rather, unemployment is as it's highest level, inflation is immeasurable, exchange is no go area, and the crime rate has increased as a result of hardship.Nigeria now has suicide bombers, kidnappers etc.All these are the aftermath of the sanusi insensitive, unprofessional and parochial management of the nation's economy.Now,having been defeated, he is talking about islamic banking and sort of nonsense.A CBN who does more talking and less of action. Somebody should call this man to order. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Nobody: 11:31am On Jun 28, 2011 |
Mallm Snusi is tempramental and over reactive and cannot give our Banks the best. I just hate CBN governors playing to the gallery for notice. For Christ's sake that seat is as sensitive as the President's sit and should be handed over to the (sanest)calmest form of people. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by odedele: 12:54pm On Jun 28, 2011 |
He was full of fire and zeal and high on the euphoria of public praise after sacking the managing directors of eight banks. Two years on, how has the CBN Governor fared on his outlined goals for the Nigerian banking sector? Few discerning analysts were quick to point out that the reform agenda as outlined above was vague. The quality of banks: The question is: What are the criteria to measure the quality of a bank. Is it quality of services, quality of the bank’s board, management and staff, quality of financial reporting or all of these combined. The CBN Governor never defined the criteria of quality of banks so it is quite difficult to measure him on this goal. But we want to assume that when he said quality, he meant all the criteria we outlined above. So we look at quality of services of banks under two years of Sanusi. What policies have Sanusi put in place to enhance the quality of services of Nigerian banks? Forgive us, but we cannot find anything Sanusi has done to increase the quality of services of Nigerian banks. What we find is that Sanusi’s actions have actually compounded the quality of service delivery in the banking sector. What Sanusi’s hasty reforms have done is to reduce the banking options in the Nigerian banking sector putting pressure on a few banks. Several reports, including banks’ returns to CBN for 2009 compared with 2010 have shown that four banks now control nearly 50 per cent of the market in the banking industry from ten banks that controlled this same share of the banking industry before Sanusi. On deposits, for instance, these four banks have N4.5 trillion out of N10.7 trillion deposits in the banking system. The significance of this concentration of the Nigerian banking space is obvious on the impact this has had on the quality of service delivery. Beside poor services, customers are also subjected to pay all forms of charges by these leading banks as customers have little choice. The four leading banks also now control more than 70 per cent of banking industry profit (Q1 2011 Reports). What Sanusi’s reform has done is to create four banks that are now too big to fail and 20 banks that are too fragile to offer meaningful support to the economy. The current structure of Nigerian banks, a result of Sanusi’s reforms has created the biggest single threat to his second stated goal of ensuring financial stability in the Nigerian banking space. How do you enhance financial stability when a few banks have become financial monopolies? How do you ensure a healthy evolution of the Nigeria financial sector, Sanusi’s third stated goal in the financial sector, when just four banks are now in charge of the Nigerian economy? Where is fair competition in the Nigerian banking sector? How do you strengthen the remaining 20 banks when they have been boxed into an uncomfortable corner in the Nigerian banking industry? The quality and strength of majority of Nigerian banks have significantly dropped in two years of Sanusi. This is basically because Sanusi’s methods have damaged the ability of many Nigerian banks to compete in the Nigerian banking space. Sanusi’s hasty reforms has not had a damaging effect on just the so-called rescued banks, it has also damaged even the banks that were not rescued. Non-rescued banks also sick? The impact of Sanusi’s hasty reforms on even the healthy banks can be easily seen when the AMCON announced its intention to buy toxic assets from the rescued banks. It soon turned out that it was not just the rescued banks that rushed to AMCON to sell these toxic assets. Even the so-called non-rescued banks eventually sold significant amounts of toxic assets (without coercion) to AMCON. And interestingly even after the non-rescued banks sold toxic assets to AMCON, their 2010 financials show that most of them still made significant provisions for non-performing loans. Why are the non-rescued banks still making significant loan loss provisions? Sanusi’s hasty actions on the so-called rescued banks, the publication of the names of entrepreneurs in national papers just because they took loans from banks, impacted negatively on the capacity of several of these entrepreneurs to either refinance or get fresh loans from banks resulting in many of the existing loans of these banks to go bad. Many bankers will tell you that the disruptions Sanusi’s actions caused in the financial system are still reverberating today. The 2010 financials of many of the non rescued banks showed that many of them are still making significant provisions for non-performing loans while even some of them that claimed not to have significant non performing loans are now engaged in public disputes with their customers over non- performing loans in excess of N200 billion, which obviously were not previously provided for. Businesses have been destroyed and many Nigerians have been thrown out of their jobs because their employers can no longer get new loans from banks. Nigerians should not be deceived. Nowhere in a capitalist economy are loans not the normal norm of running a business. What Sanusi’s actions have done is to create the perception that borrowing money to run a business is bad. It is not. In all places all over the world, businesses run basically on bank lending. Lending is the fuel for a capitalist economy. Creating unemployment: Sanusi recently admitted that the rate of unemployment in Nigeria has hit 49 per cent of employable Nigerians. After making that statement, Nigerians should not forget that Sanusi in two years has contributed significantly to this level of unemployment in the country. His activities in the banking sector have contributed to about 40,000 jobs being lost in the banking sector in two years. The disruption that he caused the banking sector and the subsequent starving of funds to the real sector from the banks has resulted in some manufacturing companies either closing down completely, or reducing their production capacity significantly. This act has also led to significant job losses in the real sector of the economy. A good example of what Sanusi’s reform has done to the real sector is what is happening in the aviation sector of the economy. Most airlines are currently struggling to remain in business primarily because their existing loans have been cut off and they are also not getting fresh loans. Today, a good number have stopped flying and the few that are flying are doing so at great risks to their passengers. Yes, the CBN has stepped in by providing financial support to the aviation sector, in the same way it has done in many sectors of the economy. The illogic of CBN special funds: But the illogic of the CBN various special funds intervention in the economy however is like the logic of the executioner who deliberately cuts off your legs and then hands you artificial legs, but then goes around telling the world of the good he has done to you by giving you artificial legs forgetting that you would not have needed those artificial legs in the first place, if he had not cut off your legs. It is also known that artificial legs can never be as effective and flexible as your original legs. It is the same with the CBN intervention funds. They are not as flexible or effective as bank loans though they are cheaper. As any businessman will tell you, for any business to succeed, you need consistent access to finance. The CBN funds are one-off intervention funds which do not give the businesses benefitting consistent access to working capital. That is the challenge with these funds. Most insiders will tell you that the CBN, in a few years will have the biggest portfolio of toxic assets in the banking system. This is primarily because the intervention funds they provided to the real sector has either been used to pay-off existing loans or have been used to buy inputs that had stalled because the businesses were not getting fresh loans from the banks. After the funds have been used for these initial purposes of refinancing existing loans or getting new inputs for production, the lack of fresh loans from banks has resulted in most companies not being able to continue production. AMCON: In as much as the setting up of AMCON (first proposed by Prof. Chukwuma Soludo) is a good idea, Nigerians should watch the activities of AMCON carefully. What is clearly emerging is that AMCON is going to be used to do the dirty works of the CBN. The CBN has positioned AMCON to take over these loans that it has given that would most likely go bad. This is to cover the back of the CBN and prevent public outcry. AMCON currently has over N3 trillion of toxic assets in its custody bought at prices that were negotiated with CBN appointed managers of rescued banks. This could not be described as fair pricing as being touted by those positioning to benefit from these huge assets now in possession of a government controlled body. What determined which assets the rescued banks will sell to AMCON? Could some of these assets that were sold have been restructured and recovered and written back into the books of the banks? What value of assets that could have been recovered has been sold at significant discount to AMCON? AMCON is also said to in future buy all bank toxic assets above five per cent of the banking industry. What does this mean? Besides encouraging reckless lending in the banking sector, it is also careful camouflage to ensure that the CBN creates an impression that the banking system is healthy. I challenge the CBN Governor to tell us where else in the world, where you have a body standing by to buy off toxic loans above a certain percentage from banks? AMCON is an emergency bank rescue vehicle. Everywhere it is set up in the world, what it does is intervene just within a period of time to resolve banking challenges and not to be the toxic loan laundry arm of the CBN or the existing commercial banks. The state of the banks the CBN took over: For close to two years, the CBN has installed its own management in eight banks under the pretext that these banks were about collapsing and need good ma |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by ufumes(m): 1:56pm On Jun 28, 2011 |
He may have good intentions for the country, but liquidating 8 banks would do more harm than good |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by ufumes(m): 2:10pm On Jun 28, 2011 |
@odedele,that's a very long and enlightening one. It seems like you are in the banking sector? |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by playboy19(m): 2:41pm On Jun 28, 2011 |
@odedele, where is the rest of that article. It is quite needed. Very insightful and enlightening article. Please post it ASAP |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by momastics(m): 2:48pm On Jun 28, 2011 |
Lets remember the trillions of Nigerians monies that will have gone down the pockets of these managers of Sanusi had not stepped in, now they want us to believe that he is not good for Nigeria, hey guys wake up if you want thieves to manage your money do not complain when your cash gets missing, for me let Sanusi do his job. If the Banks are bad let them go, the others will learn from it and people will not loose their monies. Lets stop this excuses, those managers should be in jail. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Nobody: 3:02pm On Jun 28, 2011 |
Sanusi is simply a sharia minded fellow who cares not for the economy. Sanusi go, go, gooooooooo! |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by chamber2(m): 3:03pm On Jun 28, 2011 |
Lets remember the trillions of Nigerians monies that will have gone down the pockets of these managers of Sanusi had not stepped in, now they want us to believe that he is not good for Nigeria, hey guys wake up if you want thieves to manage your money do not complain when your cash gets missing, for me let Sanusi do his job. keep quiet if you don't have anything meaningful to say. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by Genius100: 3:15pm On Jun 28, 2011 |
There are obviously a lot of i-diots on this website. Sanusi is doing his job. The banks can either recapitalize on their own or merge with another bank. Sanusi's actions are simply to protect depositors' money. You clowns must have forgotten when the banks were cooking their books and Nigerians ended up losing money with their worthless stocks. The Nigerian and Brazilian banks have a similar history. Right now, the Brazilian banking system in one of the best in the world and Sanusi's reforms are a child's play compared to the regulations in Brazil. When all the US and UK banks almost went under during the repression 2-3 years ago, the Brazilians banks fared the best. If you want a good thing, you have to be willing to sacrifice to do things the right way. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by arnold75(m): 3:35pm On Jun 28, 2011 |
There are obviously a lot of i-diots on this website. Sanusi is doing his job. The banks can either recapitalize on their own or merge with another bank. Sanusi's actions are simply to protect depositors' money. You clowns must have forgotten when the banks were cooking their books and Nigerians ended up losing money with their worthless stocks. The Nigerian and Brazilian banks have a similar history. Right now, the Brazilian banking system in one of the best in the world and Sanusi's reforms are a child's play compared to the regulations in Brazil. When all the US and UK banks almost went under during the repression 2-3 years ago, the Brazilians banks fared the best. If you want a good thing, you have to be willing to sacrifice to do things the right way.@ Genius100, i really feel that people like you dont listen to news and get their import. You didnt give the shareholders opportunity to recapitalize their banks or merger rather you offered them straight jacketed solutions, "allow yourself to be sold or be liquidated". Haba! it is only in nigeria that we can see this kind of injustice. If your father or you are a major shareholder in such banks would you go home and say "let it be so"? answer this question genuinely. God will answer sanusi terribly atleast for the tens of thousands that he threw out of job. Common inflation that he promised that he will fight till it's reduced to a single digit kept increasing each day (a reason why he should resign honorably). It is if this sanusi's "worm in the apple" tactics have not affected you directly or indirectly (negatively) that is only when you come out here to sing. I am waiting for you, one day when the truth is unveiled, i hope you will be bold enough to stand by him. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by maclatunji: 3:52pm On Jun 28, 2011 |
Genius100: No doubt, Sanusi has made powerful enemies and they are fighting back. Where was the economy when Sanusi became CBN Governor? Were people not dying of hypertension because they took term loans to buy worthless stocks. So you see the economy was already destroyed and Sanusi can do little wrong than what the likes of Cecelia Ibru, Ndidi-Okereke and Pastor Akingbola allowed to happen. By the way was this man not voted man of the year in a poll that he was not even a part of in the first place (Silverbird Man of the Year)? He is the current Economist Central Banker of the Year and some of you who cannot even prepare amortization table are here busy typing rubbish. Central Bank Governor of the Year 2011 In the 18 months that he has been in office, Lamido Sanusi has salvaged a crumbling financial sector, taken on Nigeria's powerful and corrupt bank managers and initiated reforms that have put Africa's most promising market back on the map for investors. http://www.thebanker.com/Awards/Central-Bank-Governor-of-the-Year It is no wonder that we are where we are as a country today: there are only a few good men and even fewer intelligent ones. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by nateevs(m): 4:12pm On Jun 28, 2011 |
maclatunji: Genius100: These guys don't read news and never get educated!. Read Odelele's article above and pint-point the holes in there. That will then inform your judgement before you post. Silverbird Man of the year? I laugh in bad loans!. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by maclatunji: 4:16pm On Jun 28, 2011 |
nateevs: Why should I read analysis of events that I have first-hand experience of. Next thing, you will be telling me to read Odeleles articles before I pick a wife. Odelele can type whatever Odelele likes. If you like follow Odelele, that is your choice. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by bodcash: 4:47pm On Jun 28, 2011 |
am not talking about if banks can either recapitalize on their own or merge with another banks.what am saying is employment screw Sanusi's actions. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by CHANCEMAN: 5:01pm On Jun 28, 2011 |
maclatunji: All that Sanusi has done outside of what Soludo reccomended was to fire bank management.Outsude that the nigerian economy has not improved rather it is stagnating despite the factsthat oil prices have been relatively high reserves declined.He hasmade some policy changes much of which is yet to be implemented.It looksto me like he does not have a good grasp of the macro-economic aspect of hisportfolio. |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by akpanbaba: 5:05pm On Jun 28, 2011 |
Sanusi came and told the whole world that Banks executives were corrupt and we praised him and also gave him an award.He will soon kill the banks and the economy while we are watching.I hope this is not financial aspect of Boko Haram? |
Re: Sanusi Will Ruin Economy If Allowed To Carry Out Liquidation Of Banks by maclatunji: 5:25pm On Jun 28, 2011 |
akpanbaba: Okay, now it has changed from "Sanusi HAS killed the economy" to "Sanusi WILL kill the economy." You guys are just too much . For the record, a Central Bank Governor cannot single-handedly kill or resuscitate an economy, he also needs the support of the Minister of Finance and the President. Olusegun Aganga has not shown us that he has any liver to fight the ills of the economy while Mr. President is not exactly at par with Barack Obama in terms of understanding the dynamics of Economics. In the environment that we find ourselves and the circumstance we are in, Sanusi Lamido Sanusi is doing a decent job and I leave it at that. If we continue to castigate good people and frustrate them out of the country, we will end-up being worse than Somalia and Liberia. So when we criticize, let us understand the import of what we are saying. |
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