₦airaland Forum

Buddha3:
To run a bank, like any other business, there's a basic capital you must have. That capital is measured according to the dollar rate at any given time.

Over the years, seeing how naira has fallen drastically, most of the banks have lost their basic capital. A lot have merged with others because they couldn't keep the shop open anymore. The existing banks as of this moment, will have to gear up to increase their capital base from the previous amount, if they want to stay in business.

That means, more banks are going to fold up and be merged into others. Same way Diamond banks staffs across the Nation lost jobs when the bank merged with Access, is the same way more people are going to lose their jobs in the banks that will fold up.

Thanks.

Jboynokiaphone:
The recent devaluation of the Nigerian naira against the US dollar has raised concerns about the need to increase the capital base of Nigerian commercial banks. Analysts argue that the 2004 banking industry recapitalization, which raised banks' capital from N2 billion to N25 billion, has weakened due to the devaluation. The current exchange rate has significantly reduced the capital base of banks when converted to dollars. The Capital Adequacy Ratio (CAR) of the banking system stood at 12.8% as of April 2023, indicating a relatively stable banking system. However, experts suggest that recapitalization may be necessary to strengthen the banking industry and financial institutions due to the significant depreciation of the naira. They predict potential recapitalization amounts, such as N100 billion, which could lead to mergers and acquisitions and possibly job losses in Tier 2 and 3 banks. Some banks have already been engaged in capital-raising exercises through bonds and rights issues. However, there are differing opinions on whether regulatory-induced recapitalization should be implemented, with some advocating for market-driven recapitalization through mergers, acquisitions, or stock market participation. The incoming Central Bank of Nigeria (CBN) governor is expected to play a significant role in determining the approach to recapitalization. Overall, the sector's stability and ability to support economic growth will be crucial factors in the decision-making process.

Thanks

CondenseMilk:
In 2004, before you owe a license to operate a bank, you must have 25billion naira ($250m as at then ) Worth of asset


Now, that 25b naira with the current dollar rate is worth less than $33m as at now.


Meaning that your money in the bank is at risk, so there's need for those Banks to raise their assets to about 100b naira so as to protect their customers.





The only solution is Merging of Banks

Thanks.

Who get Time to dey read this long episode.

Abeg anybody to brief am for me

H

If Obi get 2million votes make I bend

R

Ohanaeze they cwass. Make them invite terrorist for discussion.kanu should be sent to his maker

D

Igbo people will not be happy to this news

R.i.p

Even surprised that christian from the south east and South south voted yari.

I pity s/s, Hope they can see. Small election dey don vote northerners again.

Delta senators voting the Yari.

Labour party try Sha.

Hope the S/S can see the S/E senators voting the Yari from the north. Make them dey form padi padi with betrayals.

Hardly will the north vote against the southwest in an election between S/w and S/E

They said baba is too old. We told them baba brain
is not old

Class of "99

Benin kingdom go chop insult today

Anything to make obidient cry is our allow.

Their sadness is our concerned

Anything to make obidient sad is our concerns

God bless the 16th president of federal republic of Nigeria

D

One man down

Another sad day for some people .

Na mumu they carry politicians for Head

This bridge was designed by olusegun Obasanjo when fashola was carrying bag for Tinubu

Instead make you praise fashola and buhari you still find way to give honor to obj.

Who's is Nnamdi KANU? To hell with him.

Ipob can only reduce the population of their kinsmen

Another sad news for obidient this early mor mor

Another sad news for obidient this early mor mor

They should continue searching for there stolen manhood. The world has left them behind

This is Lagos.

Mehn the land for Lagos.

The heart of Nigeria

UK enjoy your country why it last.

You country go soon be like Ghana to us by the Time Asiwaju is sworn in

[quote author=1nice post=123254724]Nonsense talks from Lamidi Apapa and his fellow Yorubas in Labour Party.

Peter Obi, and Obidients will surely recover Peter Obi stolen mandate, no amount of propagandas against Peter Obi can stop the recovery of Peter Obi stolen mandate.

It is either Peter Obi lead or Nigeria will never have a President of Nigeria anymore for a long time until Peter Obi is accepted to rule Nigeria.

And for lamidi Apapa and his groups fighting Peter Obi, the days of lamidi Apapa and his cohorts in Labour Party and Nigeria are numbered.

Nigerians are now seeing how Yorubas in Labour Party like Lamidi Apapa and other Yorubas have gang up to stop the emergence of Peter Obi as the next President of Nigeria after President Buhari but the efforts of this Yorubas shall be in vain.

No wonder some are saying LP is ipob and Igbo party this comment stated it clearly

Money that could save a nation

English wey no be una language dey give
the whole nation problem

Abi na inter Milan

Release KANU or we burn down south east region