This woman is a real genius, those old fools there really needed some lecturing

Dr. Ngozi Okonjo-Iweala will be sworn in as Minister of Finance Friday, taking over the portfolio previously held by Dr. Olusegun Aganga who will now be named minister of the renamed Commerce and Investment.

Okonjo-Iweala, who was finance minister between 2003 and 2006, will be leaving her post as Managing Director of World Bank to pilot the affairs of the ministry regarded as the heart of the government.

Aganga's new portfolio could see him oversee the newly created Sovereign Wealth Fund, his pet project at the Ministry of Finance.

He is also an investment banker, having worked as an MD at Goldman Sachs in the UK.[color=#006600][/color].

This woman is the messiah of economy. pls check the achievements of OBJ's administration in economy. ThankGod for Her appointment

A clever lady , i salute her . She will surely get her next promotion in the WB if she delivers Nigeria to the shylocks as she did in the past.

Leonoel202:

This woman is a real genius, those old fools there really needed some lecturing

The calibre of our senators these days is amazing.

Leonoel202:

This woman is a real genius, those old fools there really needed some lecturing

The calibre of our senators these days is amazing.

ndu_chucks:


Would someone be kind enough to explain what Ngozi means by the statement above? How can people who obtain loans from the bank share in the bank's profits? Why should a person obtain a no-interest loan, use the money for his own benefit and then turn arround and share in the bank's profit?

I heard her make the statement on TV. My question is, was madam on Ogogoro when she made that statement?

My guy don't even act like you know any better thab the woman, the whole concept of Islamic banking is based on the sharing of both profits abd loss, what she said was exactly what it is. Don't start that cynical bullshittung like the woman just said some munbo-jumbo and nobody in the senate noticed. In Islamic banking there is no such thing as charging interest on money loaned, instead the lender( the bank) goes into a sort of partnership with the person that wants to get the loan. Depending on the agreement reached on how profits made from the partnership, the bank provides the capital for the business venture while the owner goes ahead with the running of the business. This way both profits and risk are shared unlike conventional banking that puts the whole risk on the borrower should the business fail.
So what is it you don't understand that Ngozi said?

there is no doubt she is the best for the job,

to my opinion it is another form of banking, where instead of charging interest, the people who take loans from this system share in the profits of the bank,” she said.

ndu_chucks:


Would someone be kind enough to explain what Ngozi means by the statement above? How can people who obtain loans from the bank share in the bank's profits? Why should a person obtain a no-interest loan, use the money for his own benefit and then turn arround and share in the bank's profit?

I heard her make the statement on TV. My question is, was madam on Ogogoro when she made that statement?

ndu_chucks,
 
The non-interest banking system is actually an amalgamation of two financial institution models: A Credit Union and a Venture Capital Firm.

A credit union differs from a conventional bank in that the customers are also the owners. A credit union accepts deposits only from its members and grants loans only to its members. Unlike the no-interest bank, however, a credit union charges interest on loans it makes to its members who, through a board of directors elected from their ranks, determine the interest rate the credit union charges its borrower members. By charging interest on loans, the credit union generates income to cover expenses and run its operation. If the income exceeds operating expense, it becomes dividends which are then distributed to members (depositors) as interest on deposits. So, in Okonjo-Iweala’s vernacular, “. . .the people who take loans from this system share in the profits of the bank. . .”

On the other hand, since the non-interest banks operate by that moniker, they resemble the Venture Capital model. A venture capitalist (VC) assesses a business model for viability and its potential to generate value for investors before investing in the business. When a VC funds a business venture, it becomes a minority or majority share holder in that business, and gets at least one seat on the board of directors.

If the business prospers, either by selling its outstanding shares on a financial exchange in return for cash, or by declaring dividends to its share holders of which the VC is one, the VC gets a return on its investment. If the business falters or fails to gain traction in its market, the VC may lose all its investment. A similar thing happens in the so-called non-interest banking. The tenets of are quite similar to the VC model. Although the non-interest bank does not charge the customer interest on the loan as a traditional bank will, it does expect to take a percentage of your earnings!

This is what the esteemed minister meant by “…it is another form of banking where, instead of charging interest, the people who take loans from this system share in the profits of the bank…”