Trash talk

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

There has always been a non-directional causality between economic growth and banking activities in Nigeria, so this is definitely not a bad idea. It should propel the economy to the extent of our country's realities; implying that we must never be overly expectant given that the majority of individuals and small businesses in Nigeria now rely on fintechs registered as microfinance banks.

Omitting digital banks from this development also gives the impression that the focus is more on the inflow of FX $$$ (a very uncertain expectation) rather than on 'economic growth' itself. If economic growth is the concern, there is no justifiable reason under heavens why Cardi B should ignore digital banks/microfinance banks.

smasher1:


Where Wema bank want see that kind money?

The Odua Govs could decide to raise the shares of their respective state.

I know the Govs would step in.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

If you disagree with this, then tell me the advantages of this policy.

This is what happens when you don't read, but rush to comment.

Read the entire article again and see if the question you are asking makes sense or not.

Dindinrin, you're too quick to comment on things you know nothing about. If Soludo hadn't raised the banks' capital from ₦2B to ₦25B in 2005, do you think many commercial banks wouldn't have liquidated, resulting in people losing their money? Are you aware of the country's increasing population and the rising rate of people depositing money in banks every day? Must you comment on every post, especially those outside your expertise?

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

aieromon:

- Lucky 25 after injection of capital or Merger & Acquisition deals


https://www.cbn.gov.ng/out/speeches/2006/govadd%2016-1-06.pdf

Wow. From 75 to 25 banks.
Of these 25 banks, some have either merged (IBTC and Stanbic) or even gone out of operations like Afribank, Intercontinental, Oceanic and Co.

From the report on this link, the bank with the highest capital base is Zenith bank with 270bn.

https://www.vanguardngr.com/2024/03/cbn-new-capital-base-top-5-banks-in-n1-5trn-shortfall/

smasher1:


Where Wema bank want see that kind money?

Don't be lazy guy!

Wema has 118b already projecting 156b this year

seunmsg:
All our commercial banks will have to source for more capital including investment from foreign partners. This will bring more forex into the country and strengthen the banking system. The positive impact will flow to the capital market and other associated organizations. This is super bullish for the country.

One interesting thing that comes to mind is that the Federal government have tactical decided not to.persecute any of the bank chiefs in the fraudulent way they have benefited from the forex in the recent past, i see this as a tactical way of ensuring that the money they made is not personal but ploughed into their respective banks to recapitalize their banks if they indeed love the bank. This is the sacrifice they will all have to make.
Instead of building personal empires they will have to build corporate/ public empire

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

No, not really.

Recapitalization is long overdue, the size of the economy when they last recapitalized was a fraction of the present size. Exchange rate was also very lower than now.

Again our banks hasn't been closing down as it used to be before the last recapitalization, considering the change in the country's economy it's important to change the capital base to accommodate the new dynamic.

It also help the bank attract international business and also build public trust because people know that their deposit are safe. This particular one is the reason why most people hasn't been using the likes of Opay, Palmpay, Kuda etc. They believe their not well capitalized

Tareq1105:


The Odua Govs could decide to raise the shares of their respective state.

I know the Govs would step in.

Wema will surpass target without the governors! They're targeting 158b this year end. Are you saying they can't raise 43b in one year?

You guys are underestimating the innovative bank.

Abeg will Ecobank be able to cope?

People underrated Wema bank a lot..

It’s one of the best & most safest bank in Nigeria..

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

1. Why do you think there are too many banks? It’s profitable. Bank annual statements show on average N200billion profits. That’s how much this banks make
2. How do you think they make money? Thru core banking? No. They are into investments, real estate, Forex trading, thin capitalization and all manner of things they should have left for other sectors.
3. Consolidating these banks will curb needless proliferation of banks and force the existing ones to focus more on the traditional role of banking
4. It will instill more confidence in foreign investors.

emkz:


Only banks with international accreditation would need 500 billion naira. Others with national accreditation need 200 billion while regional banks need 50 billion naira.

With 500 billion naira funds as capital base, the bank is seen as very strong, and systemically important to the country and continent. With such strength, they can mobilize more deposits from more customers, capture the unbanked population, and that means they may attract more investors to take loans for business, mortgage, auto, fees and so on; or buy more shares and they'd be able to mobilize high ticket loans which servicing can give them more profits and shareholders are happy.

Corporate governance and internal controls would be more stringent. The era of bank MDs living like kings would also be over because people who have put their funds into those banks as investors would put them under pressure.

Gbamsulotely, end of thread

Paraman:
The likes of wema and unity bank might become regional banks again.

You will be shocked that both wema and unity bank will stand strong and meet all the requirements.

Where my darling Sterling bank wan see ₦200b now?

That said, against the ₦25bn capitalization of 2006 peripersu the exchange rate and total inflation, cost of money and the cost of doing business, it is not a real change. I believe most if not all Nigerian global banks can afford that ₦500bn. I was expecting it to be ₦1trn.

I can't say the same for our local and regional banks.

In 2006: ₦25b @₦130 per USD was about $192m.
2024: ₦500b @₦1400 per USD is about $357m.

If we discount YoY 18 yrs $ to $ inflation @ about 20% gross I don't think this figure from the CBN is bad.

Good for the economy.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Brilliant ‼️

clowns

Sirtee19:
No Nigeria bank was among the 10 richest bank in Africa according to Bloomberg 2023 survey. The 10th one, People's Bank of Morocco has capital base of $28 billion, in which no Nigeria bank come close. Even if 5 biggest bank in Nigeria come together, they can't even come close.

that cos of our currency, I'm guessing SA banks dominates this list, check out the value of Rands to dollars.

Wema bank I know is even stronger ther many commercial banks in Nigeria. They pay their staff far far better than the likes of UBA, Polaris, Fidelity, etc.

Paraman:
The likes of wema and unity bank might become regional banks again.

WHAT A LAUGHING STOCK!

N500b is dam too tiny as capitalization for corporate commercial banking institutions... What has banks been doing with their bugus profits? What a degenerating system? How can a single individual be more richer than a corporate commercial bank? How on Earth could that happened in a sane economy?

For me, it should be a minimum of N10trillion, N500b should be for Microfinance banks.

- Banks Capitalization in America is in Trillions of dollar...
- Banks Capitalization in Europe is in Billions of Euros...
- Banks Capitalization in South Africa is even in Billions of Dollar...
WHILE BANKS CAPITALIZATION IN THE SUPPOSED BIGGEST ECONOMY OF AFRICA IS JUST A LITTLE ABOVE $300M

WHAT THIS MEANS IS THAT:
1. Banks had long abandoned real banking business into corruption, money laundering, stealing by tricks from customers etc.
2. How can we have a country of billionaires yet corporate commercial banks capitalization is just N500b $300m? - This means we dont have economy yet in Nigeria...
3. It means all banks in Nigeria are broke by default and prone to liquidation...
4. It means the top 3banks in America are more richer than all commercial banks, microfinance banks, mortgage and insurance companies in Nigeria...
5. This is why we dont have best brains investors coming to Nigeria and they will never come - bcoz an investor can not imagine how his company is more richer than any corporate commercial bank in Nigeria - if such company gets into financial trouble, which of the banks will they run to for help?
6. How can a first class investor come into Nigeria having known that his investment alone is more richer than all the insurance company? How will they protect their businesses? Insurance is to help business, but here a company will be the one helping insurance to grow - how would such insurance pay indemnity! This is ridiculous.
7. A tiny N500b capitalization means banks have not, over the years reinvested their profits and CBN must be blame for this, not imposing that 40-60% of banks profits MUST go into banking reinvestment.
8. How can any Group of Company in Nigeria be richer than a corporate commercial bank as we have seen in this narration?
9. It also means Oil sector companies are more richer than banks in Nigeria? It also means private businesses are the ones sustaining commercial banks, this is why when private businesses crumble, banks seems to be in crisis.
10. Honestly we dont have a banking system in Nigeria, what we have are custodians of money institutions!
YET WE HAVE HARVARD & OXFORD CERTIFICATE HOLDERS AS CMDs, CEOs OF BANKS IN NIGERIA!
What a laughing stock!

LET'S NOTE THAT; A bank should be so rich that it can Fund a National and State Budget and charge profit from funding same!

Nigeria don't understand Practical Economics and Economy, they get themselves complicated with theories!

Practical Economics is define as A common sense from a diversified perspective into a unified perspective for equal and collective benefits of all stakeholders. Its start from Strategic Planning. Untill we have a well planning structure and system, sorry, Nigeria should continue with their usual prayers.

I concur. Secondly many people will lost their job due to the merger. It isn'ta good policy at all.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Tareq1105:


In addition, those hoarding dollars would have the basis or opportunity to bring them out to invest in shares meaning more FX for CBN.

I'm convinced more than ever before that Nigeria economy would recover, and Nigeria and Nigerians shall return to the path of economic prosperity during the tenure of Tinubu APC to the glory of God amen.

Yes, Nigeria will prosper again. Even gradually under Tinubu administration.

It is not because of Tinubu, please understand this, but because of a prayers of a very few righteous ones.

Most banks would either lay off staffs than downgrade.

Asiseeit:


Wow. From 75 to 25 banks.
Of these 25 banks, some have either merged (IBTC and Stanbic) or even gone out of operations like Afribank, Intercontinental, Oceanic and Co.

From the report on this link, the bank with the highest capital base is Zenith bank with 270bn.

https://www.vanguardngr.com/2024/03/cbn-new-capital-base-top-5-banks-in-n1-5trn-shortfall/

The forced collapse of Intercontinental bank is one of the biggest conspiracy and mystery ever seen in Africa banking space.

It's further acquisition by Access Bank is the funniest scam of an acquisition. It came from no where.

Intercontinental Bank was almost bigger than GT and Zenith put together. All of sudden, Sanusi just did abracadabra coz of personal issues.

Even banks that had worse debt issues were given space of time to recover and rebuild.

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

I see no reason for this nonsense, this governor of CBN is out to create unemployment

Paraman:
The likes of wema and unity bank might become regional banks again.

There are already designated and operating as regional banks

seunmsg:


Who told you Wema bank can’t raise the new N500b capital base?

Raise fire, who dash 🐵 monkey

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Is a total waste of time to explain to you the positive advantage. You are not ready to learn, unlearn and relearn.

What's your level of education? You are such a disgrace to yourself. Let me help you. Your problem is you don't read. People like you only interested in naira bet and the likes. Read what happened before and after Soludo raised banks capitalisation to N25b. Why am I even talking to you!

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

Penguin2:
When I said in the other thread that buffoons have taken power in Nigeria, it seemed like I was just hating on Tinubu government but it’s the truth.

Or tell me what this particular policy is meant to achieve.

Explain it to me like I’m in nursery school.


In the end, what they will achieve is that banks come together and merge together so they can get the 500billion naira base capital. That’s how we will end up having about just 5 commercial banks remaining.

So, ultimately they will end up shrinking Nigerians’ choices and leaving us at the mercy of just few banks who will treat us as they like because our options are limited.

If you disagree with this, then tell me the advantages of this policy.

I’ll wait

The bolded has exposed the parlous state of your understanding vis a vis banking and economy. And do you know the characteristic of your ignorance? Arrogant and idiotic!