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Nairaland Forum / Nairaland / General / Business / The Impending Banking Crisis (23858 Views)
NDIC Raises Alarm On Impending Loom In The Banking Sector!!! / Impending Health Risk For Occupants In Lagos, Port Harcourt, Abuja And Owerri. / Emeka Offor’s Ill Health, Marital Feuds, His Crisis Deepens (2) (3) (4)
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The Impending Banking Crisis by kayfra: 3:30pm On Feb 23, 2016 |
Folks pray and pray hard coz our economy is about to get worse. Our banks are seriously exposed to the oil and gas sector and are currently sitting on a heavy debt and bad loans that are dollar denominated. Most of our banking liabilities are in dollars. We already know of first banks issue with SeaWolf oil and Atlantic energy. TSA has taken easy government money off the table. On the flip side, our banks have most assets denominated in naira and the only saving grace is the fake official exchange rate that pegs naira at an artificial value. If CBN devalues naira, to track with the market, i see bank balance sheets going into the toilet. Net liabilities will go high and not a lot of room to write off. AMCON is already in the red with so many debt write offs and it will take a very long time for inflation to catch up. We are headed for a tail spin crisis. Major Murphy's law. Already, most banks are in distress and it's been a hush hush affair. But the impending devaluation will crash everything. Am I missing anything? This is not a PDP vs APC post. Just facts on ground. 64 Likes 9 Shares |
Re: The Impending Banking Crisis by solid3(m): 3:35pm On Feb 23, 2016 |
So, what's the way out? 9 Likes |
Re: The Impending Banking Crisis by Nobody: 3:39pm On Feb 23, 2016 |
kayfra: I am going to buy a big Safe tomorrow for my worthless Naira, I no wan hear story...at all at all bad pass! 11 Likes |
Re: The Impending Banking Crisis by chubhiee: 3:39pm On Feb 23, 2016 |
If Nigerians truly understand what's about to hit them, they either escape from that country or take to the streets as revolutionaries. The clock ticks. 69 Likes 1 Share |
Re: The Impending Banking Crisis by cckris: 3:40pm On Feb 23, 2016 |
APC people who talk before thinking. You people hired Obama's campaign manager, now do in Nigeria what Obama did for America in 2008. 94 Likes 12 Shares |
Re: The Impending Banking Crisis by asha80(m): 3:40pm On Feb 23, 2016 |
They should rake in as much money from the 'fake dollar' exchange to help settle their debt. 6 Likes |
Re: The Impending Banking Crisis by kayfra: 3:41pm On Feb 23, 2016 |
solid3: No easy way out. Let's speak the truth. We effed up majorly, and this is beyond political ideology or ethnic identity. Short term solution is to sell some of our oil assets to improve our reserves but the value is in the tank right now and which investor will like to deal with the situation in the Niger Delta with armed youths? Another way for the government is by debt funding. Float a bond and let Nigerians in diaspora invest. How will they convince most people with what we know? I think this is already in motion. Hand of God solution which we can't control is for war to break out in the middle east and oilgoes back up. The rest are very long term but we have a crisis to deal with. 34 Likes |
Re: The Impending Banking Crisis by Flexherbal(m): 3:43pm On Feb 23, 2016 |
Our banks , now. It will soon get to schools. 1 Like |
Re: The Impending Banking Crisis by cckris: 3:45pm On Feb 23, 2016 |
solid3:Let the incompetent Govt resign before it turns to UPRISING. They said they would do better, but they have no ideas of to even start. Hunger can lead to irrationalities. 44 Likes 3 Shares
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Re: The Impending Banking Crisis by chubhiee: 3:47pm On Feb 23, 2016 |
kayfra:There's nothing hand of God in war breaking out in middle east so your banana republic can profit from blood money. instead, Hades would be unleashed on Nigeria so middle east can profit with peace and prosperity. 20 Likes 2 Shares |
Re: The Impending Banking Crisis by kayfra: 3:49pm On Feb 23, 2016 |
cckris: This thread is for people that can think. Not people throwing useless party labels. 48 Likes 3 Shares |
Re: The Impending Banking Crisis by asha80(m): 3:51pm On Feb 23, 2016 |
kayfra:hope it is not going to lead to massive sack in the banking sector 2 Likes |
Re: The Impending Banking Crisis by kayfra: 3:52pm On Feb 23, 2016 |
asha80: It will lead to massive sack. It's just a matter of timing. 17 Likes |
Re: The Impending Banking Crisis by cckris: 3:56pm On Feb 23, 2016 |
kayfra:Let them do as Obama did for America in 2008. 16 Likes |
Re: The Impending Banking Crisis by LRNZH(m): 3:57pm On Feb 23, 2016 |
cckris: Before you make US and Nigeria comparisons, go and school yourself on the nature of the two economies. Get some knowledge brother and don't make this a partisan thread. But OP, while I agree with you that if the banks are truly owed in USD and a devaluation will worsen the debts, I think a thread like this can lead to panic withdrawals by depositors. Anyway, Baba has said no devaluation so anybody stockpiling dollars in readiness to make a killing from devaluation is wasting his/her time. Oil price slump can lead to debt defaults but that is it. Forget about the impact of devaluation. It is not happening. 18 Likes 1 Share |
Re: The Impending Banking Crisis by cckris: 3:58pm On Feb 23, 2016 |
asha80:In 1929 Bankers were committing suicide, & you're talking of sack. 2 Likes 1 Share |
Re: The Impending Banking Crisis by LRNZH(m): 3:59pm On Feb 23, 2016 |
kayfra: Exactly what Venezuela did. Floated a dollar denominated bond but watchers think it is too late for Venezuela whose situation is worse than Nigeria's at the moment. Everyone is waiting for a Venezuela default. 2 Likes |
Re: The Impending Banking Crisis by kayfra: 4:00pm On Feb 23, 2016 |
LRNZH: I don't want to encourage panic withdrawals, just want people to be analytical. There are pros and cons of devaluation. This is a major con for our country at the moment. Buhari and Emefiele knows this which is why they are sitting tight. If they stress test those banks, the market will panic. 6 Likes 1 Share |
Re: The Impending Banking Crisis by HiddenShadow: 4:03pm On Feb 23, 2016 |
chubhiee: The North and West will prefer to pretend all is well than take to the streets against a government they almost plunged the Nation into a civil war in order to see in power The disaster will come but rest only on the North and West. 36 Likes 1 Share |
Re: The Impending Banking Crisis by asha80(m): 4:05pm On Feb 23, 2016 |
cckris:I guess that was in USA during the great depression.in Nigeria at the moment any sack Na die kayfra: One way or the other we have to pay the price of running a monoproduct economy and mismanagement. We can always hope we would not pay the price foe bad behaviour 1 Like |
Re: The Impending Banking Crisis by kayfra: 4:05pm On Feb 23, 2016 |
LRNZH: Venezuela will default soon. Their gold denominated reserves which is their lifeline has lost so much value. Chavez, being a pompous ass got them back on gold standard and now cash reserves is almost depleted and they are selling gold at a major loss! 2 Likes |
Re: The Impending Banking Crisis by kayfra: 4:05pm On Feb 23, 2016 |
HiddenShadow: Can you get your ethnic ass out of this thread? 36 Likes 2 Shares |
Re: The Impending Banking Crisis by HiddenShadow: 4:10pm On Feb 23, 2016 |
kayfra: The way you wished for war in the middle east for oil price to go up Now get your war tasty pri.... Out of this thread War monger. kayfra: 28 Likes 1 Share |
Re: The Impending Banking Crisis by Zelex9(m): 4:11pm On Feb 23, 2016 |
HiddenShadow: SMH...You can not be serious, i'm sure you're trolling? 1 Like |
Re: The Impending Banking Crisis by kayfra: 4:15pm On Feb 23, 2016 |
HiddenShadow: If you read the news you would know that the world powers are already preparing for the disintegration of Saudi Arabia and the war scenario is not farfetched with ISIS and Syria. If all you know is Igbo vs. Hausa vs. Yoruba diatribe then gtfo. 20 Likes |
Re: The Impending Banking Crisis by HiddenShadow: 4:18pm On Feb 23, 2016 |
kayfra: Keep dreaming of a war that won't breakout You guys wanted Change and now you guys are complaining after seeing your mistake. Live with your choice. No war will breakout. 46 Likes 1 Share |
Re: The Impending Banking Crisis by asha80(m): 4:23pm On Feb 23, 2016 |
kayfra:to be honest I wish nothing makes oil rebound quickly so that we be 'forced' to change our priorities and attitudes. 13 Likes |
Re: The Impending Banking Crisis by chubhiee: 4:24pm On Feb 23, 2016 |
HiddenShadow:Don't mind that racist that wished death on middle east so Nigeria can profit. he deserves to be shipped to enjoy living conditions in Palestine. to even attribute it as an act of God is preposterous. 24 Likes 2 Shares |
Re: The Impending Banking Crisis by kayfra: 4:29pm On Feb 23, 2016 |
asha80: We need it to rebound a bit, at least to a point where everything doesn't disintegrate. Buhari has some protectionists policies that may grow our dead nascent industries and the Minister of trade has already negotiated antI dumping and unfair trade with world trade organization . But with no cash, all thosw good intentions to protect us will be a pipe dream. 3 Likes 1 Share |
Re: The Impending Banking Crisis by chubhiee: 4:31pm On Feb 23, 2016 |
kayfra:Justice is when your ass is shipped to Hamas. 10 Likes |
Re: The Impending Banking Crisis by HiddenShadow: 4:31pm On Feb 23, 2016 |
chubhiee: Palestine will still be like paradise to him. Syria is better especially in the city of allepo Buhari is running away from the country he almost plunged into a civil war last year 17 Likes 1 Share |
Re: The Impending Banking Crisis by asha80(m): 4:32pm On Feb 23, 2016 |
kayfra:I am not too worried about buhari..i am more worried about the state governors who cannot think beyond allocation from abuja 11 Likes |
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