₦airaland Forum

Capital base of Nigerian commercial banks with international spread

New capital base: N500bn

Present capital => Capital need

1. Access: N251.81bn => N248.19bn

2. Fidelity: N129.71bn => N370.30bn

3. FCMB: N125.29bn => N374.71bn

4. First Bank: N251.34bn => N248.66bn

5. GTBank: N138.19bn => N361.81bn

6. Union Bank: N148.09 => N351.91bn

7. UBA: N115.82bn => N384.19bn

8. Zenith Bank: N270.75bn => N229.25bn

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Previous Thread
https://www.nairaland.com/8045096/cbn-pegs-minimum-capital-base#129158987

Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs

OK

There was a country!!!

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Previous Thread
https://www.nairaland.com/8045096/cbn-pegs-minimum-capital-base#129158987

Union bank has sold its London branch to Fidelity bank and it is currently owned by FG.

May God bless Nigeria for ever! Check my signature for free stuffs!

A

The game is on. Let’s see how it goes.

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

GTB fall my hand

Several banks go merge, las las!

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

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

Many workers will be retrenched and the suffering will increase. The banks will increase charges rate and the common man will still suffer it. Who dey advise BAT sef?









When stupid people are at the helm of affairs in the country, the people suffer

Honestly this CBN governor is just very clueless! 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 acquisitions 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?

With all the noise gt fall hands.

but come to think of it, does this recapitalization not have a negative effect on the workers? like if this banks merger now, wouldn't some staff be layed off

U dey whine Opay? Don't play!
Opay can buy 3 banks. But that's not their strategy to have physical branches

Obasanjo leads with policies, others follow

Mergers and acquisitions...

This will lead to lay off of many workers

We don't need many banks...just 5 is ok

May this yield very positive results that will benefit me, my family and all wishers of good things.

Pp

Okay

Dialpad:
Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs

Tech boom opportunity coming...

Dialpad:
Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs

The last recapitalization created more jobs This will bring in more investment and consequently more jobs

Dialpad:
Will this not lead to layoffs and closure of branches etc

I see them using less human to significantly reduce costs

Well, mergers will be inevitable... The smaller banks will have no choice but to succumb to being absorbed into bigger ones.

Of course, in that event, some of the lower staff members of those small banks will have to be axed.

Only a clueless government would be talking about recapitalization when the take home of an ordinary Nigerian can't put food on the table were would the banks source there capital from foreign investors would only invest were there is maximum security for their investments and cost of production is said to be low Nigerians dne buy market for APC ✋

Hope this policy will not summersaults later? May depositors and shareholders funds be safe

We get

nigerian banks own this country

Very informative !

Lamentable.

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...