₦airaland Forum

pocohantas:
Hhahahaha. The pehnis has a mind of its own...

Hahahaha. That's what they say but e get as e be na. They better talk sense into it before someone gets infected with a disease that has no name.

It's unfortunate. Seyi is really nice but lacked the one thing that should have made him completely good.

Good thing this story ended well. Otherwise someone would have said the lady brought it upon herself. Why did she agree to sleep in a guy's house?

But people dey try o!
Someone whose personal hygiene you know nothing about is the person you're trying to sleep with. Lol.

Mabpaine:
Good morning missy, trust U had a wonderful night too.

Yes, I did. Thanks

thanks for this secret.

You're welcome.

Me, thinking like you, responded to our customers borrowing from us. yea U are right buh also Bank to Bank lending n borrowing and also borrowing from CBN

The way you interchangeably use lending and borrowing The semantics confuses me a little. Because banks can be in both situations, lending (giving out) to customers and other banks or borrowing (receiving from other banks and CBN). I will have to understand each verb in the context being used before I can respond to it.

by wholesale, I mean involving large amount of money buh I am talkin about one that is for a short term period ie less than a year.

Oh! I see what you mean. We have customers who have an overdraft line with us to a limit of N100mn. If I understand you correctly, the amount defines whether it is retail or wholesale . In that case, those who enjoy N100mn OD and above can be categorized as short term wholesale borrowers.

But then again, what's the repayment plan? Because short term loan isn't structured to stick out more than 12 months. Customers who want over a billion usually request for term loan. Repayment of principal and interest can stretch over 3 years and depending on the purpose of the loan, they can be given a period of grace say 6 months to delay repayment of principal.

Read up Amortization. I find it interesting myself when I explain our expectations to customers who think that when their loan request is approved and they've met all conditions precedent to disbursement, they can spend the money in their account away. At least they can't say nobody told them.

I enjoy reading offer letters with keen interest in transaction dynamics. You'll understand loans better that way except you're price sensitive, you'll only be concerned about pricing.

He however mentioned that it may mean the kind of loan banks get from CBN. Yea! this in particular. Just want to know if this is the factor that drives interest rate of Bank lending markets other than Credit-worthiness of the borrowing Bank or company

Okay. When I first started at work, the first credit I did, didn't fly. It didn't cross my Group Head's desk. My line manager knew that it wouldn't be approved but she told me to go ahead with it.

The request was for a newly registered tissue paper company that needed loan to buy equipment . A simple question from my group head on who the promoters were, killed it. That request was declined on arrival. Even before he asked about equity contribution.

There's something my teacher mentioned in the course of explaining, he mentioned two windows banks borrow and place funds with CBN and they are;
- Standing lending facility (SLF) and
- Standing deposit facility (SDF)
CBN manages liquidity through this windows and I think he mentioned something like when CBN sees that banks are saving too much money with them, they (CBN) reduce the deposit rate, which will also reduce the income banks make thereby forcing them to actually lend to borrowers.

In fact, there's a maximum limit a bank can place with CBN as I was informed.

FMDQ takes all the rates and determine the average rate of all (four) tenors; overnight, 1,3&6 months yea I learnt this on the FMDQ site, buh my issue is If FMDQ takes d all these rates of lending n borrowing of top banks b4 calculatin n concluding on what NIBOR should be, it definitely means Bank borrowings/lending are independent of NIBOR. Or what is now the significant of NIBOR since its an average of rates already issued by the top rated banks?

Base rate which according to him is similar to NIBOR depending on how you look at it, is the prime lending rate (PLR) which is the cheapest rate banks give to their best customers after profiling their customers into risk buckets, the sector/industry they play in and so on Thanks so much for this. Its simplified.

So the Bank itself sets the Base rate while FMDQ sets the NIBOR. Does a customer get to choose which to use as Benchmark when borrowing?

You've said quite a lot in this paragraph and I've chuckled softly at your last question. Yes, interest rates are negotiable but there's a benchmark set by members of the MPC of CBN that the bank can't go below except the customer is assessing some intervention fund from BOI, CBN and the rest.

Your research on money market and the earlier explanation gotten from Mcpat is it. You have the fixed income money market (bonds, Tbills, CPs and BAs) and mutual funds yea Mcpat did justice 2 dah. Broke down the money market instruments for me.

But this mutual funds U just talked abt, is tempting o esp with the low risk involved, though I knw there will be corresponding low returns though.

Do you think that will yield more returns than CD? I'm considering Divesting in CD with this mutual fund.

Lol. Your choice of names though. I know Certificate of Deposit (CD) to mean the same thing as Fixed Deposit (FD), Term/Time Deposit. I have invested in both and can experientially tell you that you earn more in mutual funds than in fixed deposit. This is from experience. I can read up later to know why it is so but the return I get from mutual fund is higher than what I get from fixed deposit. In fact, sometimes I leave some insignificant amount of money in my salary account because the interest paid on it is higher than what I'll get from fixed deposit.

I don't know about other banks, but where I am, the investment amount and tenor determines the rate you'll get. That's why I said insignificant amount is better in my account than on call or fixed deposit.

Never taken time to research about Mutual funds, always thought its the same with Hedge funds and the formalities and complexities involved in hedge funds bore me

Lol. Hedge funds and mutual funds aren't the same though. You should research more and stay investment materials for beginners even though you're an astute investor.

It was indeed a session to opened my brain some more. I hope this answers your questions, if not, reach out for further clarification whenever.
I honestly can't thank U enough sis for taking out time out of your busy schedule to go thru ds stress on my behalf. God bless you bigtime.

Yea! I'm definitely goin to have more questions cos of my unquenching thirst for financial and self development knowledge which is driving me to consider taking CFA this June

Oh wow! I envy you . Nice plans you've got. Spend more time on business section of nairaland, get materials from the net, read books by ex bankers and ask questions whenever you have the opportunity to. You'll grow in knowledge.

And I will like you to recommend some development books too esp 4 ladies, will love to get some for my woman.

I've bn searching for one in particular that you posted on one of ur comments some time back; What's a smart woman like you doing at home? by Linda Burton

Thanks once again. And more grace.

Lol. You have a woman!
Very interesting!
I don't know the kind of books she'll love to read. Should I recommend spiritual or educational materials? It's difficult to do that for someone you don't know personally. But let her start with books by Michelle McKinney Hammond. I love her books to bits and pieces.

I hope she does too.

Mabpaine:
good evening ma'am

I will like to ask first about the short term wholesale borrowing and lending @ Nigerian banks. How its calculated, if its benchmarked against the NIBOR or Base rate

I will like U to pls explain how the Money market work generally

I have an amount i will like to invest for a short period cos i'm nt using it for now

I av tried researching abt the Nigerian money market online buh avnt gotten any site to educate me on it

All i get to see is tbills which requires alot more than i av

Hello friend, good morning. Let me divulge a secret here. When people, young people greet me with ma'am, I recoil especially if I wanted to relate with the person as mate. I love my first name, in this place, my moniker , banish the "ma'am" and call me sis sef, I'll be at ease. That's my little secret to retaining friends . Let's be cool friends like that.

I see you as a friend. My instincts though suggests a younger friend but no matter how young, you can't be younger than my oldest nephew who relates with me as though we are classmates cos we discuss school work and novels. So mabpaine, be my discussion partner this morning

First, you asked to know about short term wholesale borrowing and lending. This question confused even the masters because they weren't sure what I meant and tried to narrow the concept down. Their questions, does this borrowing mean our customers approaching us (the bank) for loan or banks borrowing/taking from other banks or banks borrowing from CBN as lender of last resort. Me, thinking like you, responded to our customers borrowing from us. So, my master wrote on my note, SHORT TERM/WHOLESALE BORROWING.

Short term borrowing that is loans banks give to customers on a short term basis, not more than a year. Example Overdraft, Trade finance (for 120 days), import finance facility, direct advance, etc. While wholesale borrowing remains vague because he was careful not to label Term loan as wholesale borrowing. He thought about retail borrowing and corporate borrowing but when he saw that I didn't look like that was new to me because of my background he knew it wasn't what I wanted to hear. He however mentioned that it may mean the kind of loan banks get from CBN. Maybe you'll tell me what you have in mind to better enquire.

Secondly you asked, "How its calculated, if its benchmarked against the NIBOR or Base rate". By this, you mean interest rate right? It is deep. I was accused at this point of preparing for an interview to leave the bank because of the way I dished out your questions. NIBOR - Nigerian Inter-bank Offered Rate is the average rate banks lend or take money. FMDQ takes all the rates and determine the average rate of all (four) tenors; overnight, 1,3&6 months. Base rate which according to him is similar to NIBOR depending on how you look at it, is the prime lending rate (PLR) which is the cheapest rate banks give to their best customers after profiling their customers into risk buckets, the sector/industry they play in and so on.

The interest rate we give to Dangote, Nigerian Breweries that enjoy spontaneous financing by the way is different from what we'll give "Ada and daughters enterprise" because of the reasons stated above.The risk assessment won't be the same. From this base rate, banks begin to calculate PLR + 2, +3, +4 and so on for others. So yeah, that's like a benchmark. The base rate determines other rates. On this, he dug deeper into the bimonthly MPC meetings where MPR is decided. Currently, it is at 14% (benchmark interest rate)here in Nigeria.

Your research on money market and the earlier explanation gotten from Mcpat is it. You have the fixed income money market (bonds, Tbills, CPs and BAs) and mutual funds. He dwelt more on mutual funds though as a small girl that I am, he felt that's where my interest lie. A mutual fund is an investment scheme that pools money from you and I and many like us with low risk appetite for the purpose of investing in capital instruments and money market instruments, he said.

It was indeed a session to opened my brain some more. I hope this answers your questions, if not, reach out for further clarification whenever. Thanks.

Good morning. Apologies for the delayed response please and I hope you enjoy the rest of your weekend.

mcpat:
Hi Mabpaine,

I will try to answer your questions to the best of my knowledge. The money market is skewed toward treasury bills at the moment. Less investments in commercial papers and BAs. The Treasury bills market is sub divided into the primary and secondary market and the commercial banks have successfully monopolised the primary markets hence you cannot buy directly from the government hence you can only get bills in the secondary market from commercial banks at their stated rates.

These rate as at today stands between 7.5- 10% depending on the tenor but before you commit into bills you might want to consider time value of money and hence the current inflation rates. The only solace in bills now IMO is the fact that it is a risk free assets and you are sure you will get your principal and interest as at when due. It is also very marketable and very realizable hence you can pre liquidate.

For lending, Banks generally have a Prime lending rate that is determined by NIBOR but that is for their best customers, they then place customers into risk buckets and add extra percentages depending on the risk level. So rates are not fixed except it is a cbn intervention fund.

I hope this helps.

@amicable09, nice thread !!

Thank you Mcpat. For a moment I thought you were the one who I met at work and got the lecture I'm about to share. Thanks for your input. I very much appreciate.

Good morning.

Mabpaine:
good evening ma'am

I will like to ask first about the short term wholesale borrowing and lending @ Nigerian banks. How its calculated, if its benchmarked against the NIBOR or Base rate

I will like U to pls explain how the Money market work generally

I have an amount i will like to invest for a short period cos i'm nt using it for now

I av tried researching abt the Nigerian money market online buh avnt gotten any site to educate me on it

All i get to see is tbills which requires alot more than i av

Lol. As if I knew that you were going to ask me something I can't authoritatively answer, I earlier proposed that I'll call on my bosses. That proposal still stands

Please give me till close of business tomorrow to consult with senior friends at work as it is late already today. I'll like to answer correctly so that I don't misinform you. My understanding of the money market is somewhat shallow and that's because of the little experience I have dumping idle cash there.

By tomorrow, I'll bring you solid answers. I don't mind learning directly from guys in Treasury, Credit Office and the rest. Thanks for these questions, you've opened my mind to other areas. I have a research topic at hand, courtesy of you.

Enjoy the cool evening breeze.

Mabpaine:
Hii Missy!! Pls I av a question that relates to the Money market. Dunno if this is d thread i shld be asking dah, buh I need ur Intellectual prowess on it. Biko

Hi monsieur, sorry for the delay in replying sooner.

You are free to ask but I think it will be best if you asked your questions in a chat room or any of the threads I created. I don't know how the OP or MODs will take it here.

Whatever it is about the money market, I have bosses who I can call on if the question is bigger than a learner like me.

Cheers!

Lol. Nigerians and their mouths!

See people starting with mummy, ma, still they find a way to tell her not to apply this kind of makeup again

Rita Edochie is a very beautiful woman. With practice or assistance, she'll do better next time.

Cry Cry Mama on screen
Soft spoken. Always appealing to our soft side, always.

PenisCaP:
Yes with the pain and passion in ur write up.
We dnt need to question if u were a TeddyA fan.
I still repead that TeddyA undoing was his arrogance. Not sex.
We know what BBN is all about .. Its not a religious house, reason they rated the show 18.
So dont blame anybody or condemned any housemate for having sex.

Give miracle credit due to him and stop hating on the young man, he smashed every record in the house and deserved the money more than Any housemate.
Keep sentiment apart and tell urself the truth for once.

So you can actually write without abusing me.
How touching!
I cry!

Just do a small background check on this moniker and you'll see you've been quoting the wrong moniker all along.

That's my parting truth to you

PenisCaP:
Hehehe well u can cry more.. Now that I have realized where ur pain is coming from becoz ur TeddyA was evicted for being arrogant and proud thinking he is a god( not for sex) becoz even tobi had sex in d house.
So look for another cheap excuse.

Ur hypocrisy stinks.. Are u not part of people who supported bisola despite her dirty acts last year.. (Fuc.king TTT and bally)
But u kept mute becoz her name is BISOLA.. Los if u get my drift.

BTW wat do u want his mother to do?
Deny his son?
Is miracle a kid? Did he ask miracle to go and have sex.

MIRACLE MADE HIS FAMILY AND FANS PROUD HE WAS D MOST DECENT AND FOCUSED GUY IN D HOUSE.
KUDOS TO HIM.

Lol.

Did I just read the use of personal pronoun right here?
My Teddy A! Hahahahjahaha.
No be only my Teddy A. Na my son. Lol.
What a forum!

Abeg, goodnight.

PenisCaP:
Ur hatred is too much for a woman to have, see u jumping on every comment to write of any positivity.. Tufiakwa!! And ubare among people condemning ceecee.
Pls u are not better of.
Just that we can't see u on tv

Lol. Time. With time my brother, you'll see me on TV. Internationally.

My hatred (your choice of word, not mine) is as a result of the many loud voices applauding wrong actions and judging unfairly.

I've not said anything yet about CeeCee. My issue is with people calling Bam Bam and Teddy A or whatever his name is, toilet couple because neither of them emerged winner of the show.

I can't keep shut after reading such things and come on a thread to read about Miracle's mother rejoicing over her son's victory. What will Nina's mother do now?

Dance?
With no money and no car, will she dance?
Let somebody tell me tomorrow that the reason why she's 35 and unmarried is because she had sex on TV "shamelessly" and you'll see my response. Remember to call it hatred then.

AHCB:
there are other places he can stay apart from the ones you mentioned. everything is planning. beside, if you truly believe 25mil is a small amount, steal it from your bank lets see if they'll overlook it.

Lol. I don't have to steal it. I can collect it and dash you.

AHCB:
if put in adequate use, 25mil will last him forever. people have made it with lil less. it all depend on him (miracle).

frankly, i believe both bbn and nollywood are useless. never will you find me watching anything remotely relating to them. i've learned to stay away from things that doesn't add value to me.

Lol. N25mn? The N25mn I know in the hands of a young man who has become a celebrity.

How much is a duplex in Lekki? VGC? Banana Island?
How much is a duplex for rent in any high brow area of Lagos for 2 years?
Answer this and tell me how much will be left.


His mother after her dancing will get a fraction.
His brother after hailing him and believing in him for months will get sth.
His girlfriend or girlfriends, will be on his payroll.
His wardrobe must change.

You think N25m is a big amount, it will shock you.
Tell me, cos I don't know, is he a musician? Is he a businessman? What was he doing before he joined the show sef?

gcof:
what they do on bbnaija is not worse than what they show on nollywood movies yet people like you probably watch it comfortably

They are not the same.

First, when I see Kate Henshaw on TV kissing Jim Iyke, I don't say outside that Kate kissed Jim. The character she played, kissed the character Jim played. I expect everyone to know this thing! It's too simple to understand. That is why she didn't play the role as Kate Henshaw. Neither did Jim play it as Jim Iyke.

It was a movie and you'll always see the DISCLAIMER somewhere at the end. If you've never noticed it, take out time to do so and read with rapt attention when it is displayed.

BBN wasn't a movie. It was a reality show. They were to be themselves. Portray themselves to the delight of the viewers. Arguments over whether the show was scripted or not has been on but no side has won so we'll go with the general notion that Miracle was Miracle and Nina was Nina. That their parents while they were in the house are not different from what we have outside. So comparing this to what we watch in movies is wrong comparison and should stop.

Those young people for three months exposed their love for money without remembering that money has wings. In reality, his account has been credited with N25mn. Forget the sound of that, N25mn will not last him his lifetime. That's what we should concern ourselves with as young people and forget this riches that will fly away.

omoiyalayi:
I hope she jumped up too when her son was nackin Nina too

I bet my mother would have done same if I was in his shoes

Some of you that re condemning d woman Sebi na her son dey knack, wetin una want make the mother of the person wey her son de knack do?

There's nothing the mother can do abt it, she cannot close the show or forcefully remove her son 4rm d show d son is an adult & can ma decision for himself so make una free her

Abi now dat d son have won d money she shld denied him as her son?

All is well that end well

This conclusion is somehow. This will probably be my first comment on a BBN thread but I think the silence of people who don't agree with a thing is making those with voices enforce wrong doings.

So, if after all the sex he didn't win the money like Bam Bam and Teddy A, you would have called them out in shame like you guys are doing to the others. Those ones are toilet couple while these ones are role models. SMH.

I asked someone yesterday where these guys will go to after the show - their parents home or hotels? Because I know, if they are from where I'm from, whether win or lose, after the show, you better find your bearing.

The end doesn't justify the means. Not in this case.

Shukusheka:
If this one gets pregnant, where will the baby stay?

Is her womb on her waist

Why should anyone even be concerned about her pregnancy? When a woman conceives, the body makes room for the new life growing inside her.

Her waist is where it is.
Her womb is where it is too.