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N500b Capital Base: Capital Needed By Commercial Banks With International Spread - Business (2) - Nairaland

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CBN Pegs Minimum Capital Base For Banks At ₦‎500 Billion / Kano, Ondo, Anambra Depositors Flood Banks With Old Notes / Customers Scam Banks With Fake Visas, Tickets For Forex (2) (3) (4)

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Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by hslbroker2(m): 3:40pm On Mar 29
CodeTemplar:
Lamentable.
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by CartelKenneth: 3:40pm On Mar 29
Mergers and acquisitions galore loading
The big fish wil eat the small fish 😂😂😂
Bye bye keystone, sterling , fidelity and fcmb!!!

2 Likes

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by commoditiesnig: 3:41pm On Mar 29
References1:


#CableIndex

Previous Thread
https://www.nairaland.com/8045096/cbn-pegs-minimum-capital-base#129158987
You didn't add Eco Bank intl. The bank has the highest capital base of all banks over 350bn (I was surprised to hear)

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Oyindamolah: 3:42pm On Mar 29
Dialpad:
Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs
Lay off would be sumanic
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by ednut1(m): 3:42pm On Mar 29
Banks will merge. branches in same locations become redundant and people get laid off.
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Ogonimilitant(m): 3:45pm On Mar 29
Where is Wema bank?
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by NaijaCoverBlog(m): 3:52pm On Mar 29
Hmmmmmm
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by bdon123(m): 3:52pm On Mar 29
References1:


#CableIndex

Previous Thread
https://www.nairaland.com/8045096/cbn-pegs-minimum-capital-base#129158987
From this we can deduce that zenith bank is d biggest n strongest bank in naija

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Babangidapikin: 3:52pm On Mar 29
Did CBN consult with them before throwing this out there ...abeg o we don't want merge of the big banks they are not the problem but the micro bank that are too many, of course some of them are needed especially those in remote location but still they are just too many .. and the timing is wrong sef ...you need to show your economy is strong to attract investment.. merger isn't FDI or LDI... rather you are just offloading more proffessionals into the Job market.

2 Likes

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Pootle: 3:54pm On Mar 29
Finesse247:
U dey whine Opay? Don't play!
Opay can buy 3 banks. But that's not their strategy to have physical branches

dey praise them until our money go hang
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by starstaz(m): 3:58pm On Mar 29
Cardio don give dem assignment. Na good thing. Make dem work harder now.

1 Like 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Dobodobo04: 3:58pm On Mar 29
43Ronin:
Honestly this CBN governor is just very daft! Where will commercial banks get the funds from? Even if they issue IPO how many nigerians can purchase and for what exactly? Why would any nigerian wan to tie their funds as shares?Does this fool even realise that the eventual mergers will lead to lay-offs? Thereby increasing the unemployment situation in a country where farming is basically a deadly job? Gosh! Why can't he instead issue federal govt bonds at massive interest rate like 15% so that he can mop up excess liquidity in the economy thereby dropping inflation? Then govt invest the funds into capital projects?


Daft?? Wrong choice of word!!

CBN probably using it to mop off Naira off the system.

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Blazetrailer: 3:58pm On Mar 29
...what type of half educated analysis is this?

Oyerinde16:
What it means is that.
1. Banks must have 500b untouched in reserve, they can only take it or cash it if they want to close or shut down the bank.
2. Banks will begin to look for ways and means to gather this money, either by savings, merging, borrowing and or using stringent or dubious methods to get the money.
3. Banks would need more marketing staffs to pay less but bring in more money into the bank.
4. Most banks would borrow to stand alone then spend years paying back the loan
5. Some banks would just merge to meet the target then consolidate and move on without owing.
6 you can add your own

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by naija4life247: 3:59pm On Mar 29
This Cardoso is also a Brazilian oooo. But he no dey pass him boundary like that vagabond Rhodes-Vivour.

Cardoso is our boy, and he is making us proud
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Smokeybrain(m): 3:59pm On Mar 29
Zenith Bank is the strongest from the chart
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Boldideas: 3:59pm On Mar 29
Finesse247:
U dey whine Opay? Don't play!
Opay can buy 3 banks. But that's not their strategy to have physical branches

Opay will buy up three banks eventually, sack 70% of the staffs, and still continue doing business.

1 Like 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by naija4life247: 4:00pm On Mar 29
Angelfrost:
Several banks go merge, las las! tongue

Happened under the watch of Prof. Charles Chukwuma Soludo, then CBN Governor.

Next time, call him Professor Charles Chukwuma Soludo the Solution.

While the world was crying of recession in the late 2000s, hunger and starvation all over the world. Many rendered homeless in USA and Europe. But, we Nigerians were doing Owambe Parties from Monday to Sunday. Musicians were playing all days and night because Soludo the Solution managed the Fiscal and Monetary policy implementation so well. He sat with many banks Board of Directors and helped them negotiate balanced mergers and acquisitions. I know because I was in the industry then.

The world bank, IMF, European Economic Bank and others had to put their chairs and tables under mango tree and listen to the Professor Emeritus to teach them Micro and Macro Economics.

This is why I am very angry whenever someone says the useless Musa Umar Yar'Adua wey Ogun kill was a good man. That is the idiot that removed a Professor of Macro Economics as CBN Governor after his first 5-year tenure and replaced him with the pedophille Sanusi LamidoSanusi who has a Masters degree in Islamic Studies from a university in Sudan and Yar'Adua made such an idiot the CBN Governor.

The pedophille Sanusi Lamido Sanusi illegally took over 10 Southern Banks by colluding with some Southern crooks like the once that Ogun just killed in a plane crash in USA while going to have sex party with his family. And Goatluck Jonathan watched until Sanusi ruined 10 Southern banks.

2 Likes

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Trojan8(m): 4:00pm On Mar 29
Dialpad:
Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs

What relationship does increasing capital base have with reducing costs?

The way some of you jump on issues that you have zero understanding of ehn.

7 Likes 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Blazetrailer: 4:00pm On Mar 29
Two illiterates.....blind correcting blind....you cant use bank capitalisation to mop up excess liquidity...it is not a monetary policy tool for managing inflation.

Dobodobo04:



Daft?? Wrong choice of word!!

CBN probably using it to mop off Naira off the system.

2 Likes 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by ponziponzi(m): 4:01pm On Mar 29
inoki247:
Lol with all the interest wey UBA dey declare dem no get up to N500 Billion as dem litter around Africa Country still.....



Opay wey no get international spread like that even come get money pass most of the banks...

We are talking about capital base and not assets. For example UBA asset is over $20 billion. Convert that to Naira and see. Just last year, UBA profit after tax is about N375 billion.

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Trojan8(m): 4:02pm On Mar 29
Angelfrost:
Several banks go merge, las las! tongue

Happened under the watch of Prof. Charles Chukwuma Soludo, then CBN Governor.

Aside the top five banks, the rest fall under national and regional cadre with a small capital requirement. The 500bn is for international banks which most do not fall under, I believe we won't see a loads of M&A. Just crazy rush to increase capital size, most likely route is FDI.

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Izuchukwu70: 4:02pm On Mar 29
kingzjay:
There was a country!!!


Shut up! Illiterate

3 Likes 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Xxxylxxxx: 4:02pm On Mar 29
Banks should marged to stay in the business. After all, we don't need many banks. 4 is enough. Number of failed transactions would reduce as the person your sending money to, would most likely using the same bank with you.

2 Likes 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Nasri100(m): 4:02pm On Mar 29
Ogonimilitant:
Where is Wema bank?

I was surprised too. That bank doesn’t even have international authorization and it’s one of the oldest banks in Nigeria.

It’s my debit card account so I don’t care if they fold. My main account is Access Bank so I guess my funds are safe.
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Angelfrost(m): 4:03pm On Mar 29
naija4life247:


Next time, call him Professor Charles Chukwuma Soludo the Solution.

Gbamest!!! Totally Stamped and Sealed!

One of the best CBN Heads this nation ever had.

Obj really surrounded himself with technocrats and brilliant minds while in charge of this nation... He was wise enough not to allow nepotism influence his choices.

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Trojan8(m): 4:04pm On Mar 29
Finesse247:
U dey whine Opay? Don't play!
Opay can buy 3 banks. But that's not their strategy to have physical branches

Valuation is different from shareholders fund. Plus most Fintech coys have stupid valuation that defies logic. Explain to me why Access bank with a valuation of 821bn is lower than Opay. What structures that does Opay have to justify such valuation?

1 Like

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by DeLaRue: 4:05pm On Mar 29
richidinho:
GTB fall my hand

Gtb will raise that amount without difficulty.

Gtb has the strongest bank brand but it is very conservative. It takes far fewer risks, has very few branches, but has the lowest cost base amongst Nigerian banks. Pound for pound (naira for naira), Gtb is the most efficient bank in Nigeria.

Investors, particularly foreign ones, rate Gtb highly. They'll subscribe to any positive steps it takes to shire up its share capital.

4 Likes 1 Share

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Trojan8(m): 4:05pm On Mar 29
Boldideas:


Opay will buy up three banks eventually, sack 70% of the staffs, and still continue doing business.

Beer parlor talk. Access Bank's PROFIT AFTER TAX for 2023 was 619BN naira. Opay kor, no pay ni.

2 Likes

Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Angelfrost(m): 4:06pm On Mar 29
Trojan8:


Aside the top five banks, the rest fall under national and regional cadre with a small capital requirement. The 500bn is for international banks which most do not fall under, I believe we won't see a lost of M&A. Just crazy rush to increase capital size, most likely route is FDI.

True... Well said.
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Lifestone(m): 4:07pm On Mar 29
Oyerinde16:
What it means is that.
1. Banks must have 500b untouched in reserve, they can only take it or cash it if they want to close or shut down the bank.
2. Banks will begin to look for ways and means to gather this money, either by savings, merging, borrowing and or using stringent or dubious methods to get the money.
3. Banks would need more marketing staffs to pay less but bring in more money into the bank.
4. Most banks would borrow to stand alone then spend years paying back the loan
5. Some banks would just merge to meet the target then consolidate and move on without owing.
6 you can add your own
You are wrong sir
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by Slippy: 4:07pm On Mar 29
LegendHero:
The game is on. Let’s see how it goes.

That’s like $397m in today’s rate for that 500billi.

what app is this?
Re: N500b Capital Base: Capital Needed By Commercial Banks With International Spread by PNomsule: 4:09pm On Mar 29
Oyerinde16:
What it means is that.
1. Banks must have 500b untouched in reserve, they can only take it or cash it if they want to close or shut down the bank.
2. Banks will begin to look for ways and means to gather this money, either by savings, merging, borrowing and or using stringent or dubious methods to get the money.
3. Banks would need more marketing staffs to pay less but bring in more money into the bank.
4. Most banks would borrow to stand alone then spend years paying back the loan
5. Some banks would just merge to meet the target then consolidate and move on without owing.
6 you can add your own

No. 4... banks cannot use shareholders funds (or borrow). They however can raise funds through ipos, merger, acquisitions, increased savings.

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