Amicable09. Long time Madam. How is you are?

faith2ogesco:
Amicable09. Long time Madam. How is you are?

My dear friend,

It's been ages! Where have you been hiding?
Good to read again from you.

Happy new year!
How are you?
Where are you?
What's up?
How is everything in general?

I'm happy you called out my moniker
Let me be the first to say "Welcome back".
Nno.

amicable09:

OK... but I'm afraid I have lost password to the email linked to my NL account. Except it is very personal and for one ear alone, I can improvise.

Thanks.

lols......abeg I get currency swap deals. Any market for me?

Babacele:
lols......abeg I get currency swap deals. Any market for me?

Lol. Market dey offline

Good afternoon uncle Cele, how will it be?

amicable09:

Lol. Market dey offline

Good afternoon uncle Cele, how will it be?

we meet at offline junction.

amicable09:

My dear friend,

It's been ages! Where have you been hiding?
Good to read again from you.

Happy new year!
How are you?
Where are you?
What's up?
How is everything in general?

I'm happy you called out my moniker
Let me be the first to say "Welcome back".
Nno.

happy new year dear. Am fine o small in Lagos, the sky is up but am good. We thank God for every every

amicable09:

For different reasons my friend. Before I continue, let me inform you that interest rates are negotiable. No two facilities are priced the same. What we have is what we can't do below and above like nobody should charge you above 30% for any facility.

That said, interest rates pegged at 25% is usually for corporate customers not retail customer however, it's not as though it is as low as 10-15% and that's because the funds we receive most of the time are high priced. Take for instance, a customer gives us a 100 million naira deposit for 90 days at 18%. You want 100 million naira for 90 days too, what do you advice we charge?

You'll pay management fee. Maintenance fee. small small 1% or 0.50% fee like that so that we too earn small thing on it. You get?

That's just how it is. If the funds were free like intervention funds and so on, the interest rate won't be high at all.

Nice point.

You also have to put into consideration the LRR and CRR authorised by CBN. And then the NDIC premium. All these increase the rate at which depositors fund are given to borrowers.

I'm enjoying your thread. Well done

amicable09:

OK... but I'm afraid I have lost password to the email linked to my NL account. Except it is very personal and for one ear alone, I can improvise.

Thanks.

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

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.

amicable09:

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.

thanks so much missy. U've bn an inspiration 2 some of us wiv ur intellect n Emotional intelligence. God bless U mightily

amicable09:

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.

Anticipating.
Will be glad to learn 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

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 !!

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 !!

This explains so much especially where U said tbills have bn monopolised by commercial banks, cos I was wondering too dah there is a difference btw wah i learnt online n d real life happenings. And ur explanations ar easy to understand. Thank U very much sir. God bless U mightily. Buh sir, can U just xplain how Bankers' Acceptances work. Tho U said its nt in vogue anymore buh just for knowledge sake. Thank U once again

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

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.

That is why islamic banks are the best. They don't just lend you money to gain interest, they partner with you and also share the risk of the business with you. They do this through instruments like musharaka financing (partnership) , ijarah financing ( leasing) ,salam (advance sale), istina ( make to order) , mudarabah (venture capital )etc. Google about this to know more .
Although they also have there risk assesement technique to use for the financing.

amicable09:

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 please and I hope you enjoy the rest of your weekend.

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

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 thanks for this secret.

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

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.

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

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?


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.

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

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

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.

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.

nams77:
I laughed hard when I saw your post. Many persons don't understand that banking is a risky business. A lady approached me a while ago. She wanted financing for an LPO. I told her the company that issued the LPO is not among companies and establishments we deal with. Not that the company is bad. I took her to a microfinance Bank to see a friend there. She was asked if she has any properties that is worth 24M? She said ah ah, she will do the supply and return the money na bla bla bla... I told her it doesn't work that way. Anything can happen to the company and they may not be able to pay for your supplied goods, so what happens to the bank (depositors) money
The saving grace for entrepreneurs in America is that they have venture capitalists (firms) that sponsors ideas. That was the saving grace for most of this dot.com organizations in America

The truth is that there some banks in America who also act as venture capitalist taking huge risk for the small businesses to blossom but Nigerians banks have no such risk appetite , Nigerian banks can give a loan of 10B naira to a politician with zero collateral than to sponsor an idea that would cost just N1M.. you wonder why America is the greatest country in the world ,there are risk takers..we are not.. Nigerian banks want easy and free money..

anigold:


The truth is that there some banks in America who also act as venture capitalist taking huge risk for the small businesses to blossom but Nigerians banks have no such risk appetite , Nigerian banks can give a loan of 10B naira to a politician with zero collateral than to sponsor an idea that would cost just N1M.. you wonder why America is the greatest country in the world ,there are risk takers..we are not.. Nigerian banks want easy and free money..

I quite agree with you. The issue is quite complicated

Mabpaine:

This explains so much especially where U said tbills have bn monopolised by commercial banks, cos I was wondering too dah there is a difference btw wah i learnt online n d real life happenings. And ur explanations ar easy to understand. Thank U very much sir. God bless U mightily. Buh sir, can U just xplain how Bankers' Acceptances work. Tho U said its nt in vogue anymore buh just for knowledge sake. Thank U once again

@Mabpaine @amicable09

I am glad my little ramble helped a little, i am too excited to read through all you have said . So i will read later and revert.

Cheers!!

@Mabpaine

This is the best time to invest in Tbills, rates are the most favorable in months.

What is interest rate?