oyb:

see name dropping

Oga, he came to British visa office, and we jammed in lift and introduced myself to him as his friend's(career son) brother and one or two other chats.

biina,
can sanusi ever go wrong? Has he done anything wrong?

Was their anything good about soludo?

agabaI23:

biina,
can sanusi ever go wrong? Has he done anything wrong?

Was their anything good about soludo?

This is not about Sanusi Vs Soludo! talk about the issues rather.

let us not personalise issues

Akanbi_edu:

This is not about Sanusi Vs Soludo! talk about the issues rather.

Thanks for your advice though I was asking biina a question not you buddy.

agabaI23:

Thanks for your advice though I was asking biina a question not you buddy.

Your question is in bad faith.

Akanbi_edu:

Your question is in bad faith.

Thanks again but what about minding your business?

agabaI23:

biina,
can sanusi ever go wrong? Has he done anything wrong?

Was their anything good about soludo?

Like someone said, this is not Sanusi v Soludo, but still

1. So far, Sanusi has not done anything wrong IMO, but he has failed to do somethings. Primarily, I am waiting for a clamp down on the forex black market. I dont have much hope that Sanusi would do this (after all na im people dey there) but I hope his successor will.

2. Soludo had some good ideas, but was appointed ahead of his time. We needed a 'Sanusi' before a 'Soludo'. I would have liked Soludo being a DG under a Sanusi type, before assuming the office of Governor. Lax supervision and malpractices often made Soludo's policies miss their targets. Still one has to credit him for maintaining a high level of forex reserve during the oil price boom.

biina:

Like someone said, this is not Sanusi v Soludo, but still

1. So far, Sanusi has not done anything wrong IMO, but he has failed to do somethings. Primarily, I am waiting for a clamp down on the forex black market. I dont have much hope that Sanusi would do this (after all na im people dey there) but I hope his successor will.

2. Soludo had some good ideas, but was appointed ahead of his time. We needed a 'Sanusi' before a 'Soludo'. I would have liked Soludo being a DG under a Sanusi type, before assuming the office of Governor. Lax supervision and malpractices often made Soludo's policies miss their targets. Still one has to credit him for maintaining a high level of forex reserve during the oil price boom.

I know it is not sanusi vs soludo but the passion with which you defended sanusi and capitulated soludo made me wanna know if it is a case of blind allegiance. I have heard what i wanted to hear.

agabaI23:

I know it is not sanusi vs soludo but the passion with which you defended sanusi and capitulated soludo made me wanna know if it is[b] a case of blind allegiance[/b]. I have heard what i wanted to hear.

Blind allegiance? I no sabi d guy from Adam, and if he goes the way of typical Nigerian office holders, I will be the first to ask for his head.

An example is Tunde Lemo, who I felt (back then) should have been appointed CBN governor ahead of Soludo, but after the nonsense that went on under his nose as DG supervision, I want the guy removed and probed. One can criticize Soludo for not being effective enough in supervision, but we must also admit that Soludo's background didnt prepare him for that aspect of the CBN. and more so, nobody knows it all. Lemo on the other hand has no excuse IMO, and even if Soludo had hampered him in performing his duties (which I seriously doubt), he should have been honorable enough to resign.

All I am interested in is what I think is good for Nigeria. I have no allegiance to anyone, irrespective of ethnicity or religion.

one nice effect is that commercial banks will lend tothe real sector,
this will lead to even development of our economy
o
quaks will stop working in banks as investment banker, more professionalism

more job will go at the short run but create more job that has more security in long run

some bank office will close but will be bought up by new once

biina:

Blind allegiance? I no sabi d guy from Adam, and if he goes the way of typical Nigerian office holders, I will be the first to ask for his head.

An example is Tunde Lemo, who I felt (back then) should have been appointed CBN governor ahead of Soludo, but after the nonsense that went on under his nose as DG supervision, I want the guy removed and probed. One can criticize Soludo for not being effective enough in supervision, but we must also admit that Soludo's background didnt prepare him for that aspect of the CBN. and more so, nobody knows it all. Lemo on the other hand has no excuse IMO, and even if Soludo had hampered him in performing his duties (which I seriously doubt), he should have been honorable enough to resign.

All I am interested in is what I think is good for Nigeria. I have no allegiance to anyone, irrespective of ethnicity or religion.

Once again, i am forced to state that your arguments always seems to project you as someone sitting on one side of the fence irrespective of superior arguments, evidence and facts. Someone just called you out on your consistent understating of the work of previous CBN administration, you denied it but simultaneously launched an attack on the previous CBN Governor that his background does not prepare him for that aspect (i guess you are referring to supervision) of the CBN. What in your humble opinion, does the current CBN Governor not have in his background to prepare him for any aspect (you can think of) of the CBN?

i predict the following banks to the verious categories:
1. international:
      zenith
       GTB
       first bank
       UBA
2. regional:
       Ecobank
      UBA
3. commercial:
      intercont
      oceanic
      fedelity
      fin bank
       phb
4. invesment banker
     IBTC charteed
     BGL
     First city

i fogot

Islamic bank:
unity bank

wyt:

one nice effect is that commercial banks will lend tothe real sector,
this will lead to even development of our economy
o
quaks will stop working in banks as investment banker, more professionalism

more job will go at the short run but create more job that has more security in long run

some bank office will close but will be bought up by new once

Really? What is the reason why they are not lending now that will make them lend tomorrow when their capital base is reduced to 10B (or whatever it is reduced to). What socio-economic fundamentals have changed to make them lend MORE to real sector?  

By the way, if you take time to look beyond the smokes and mirrors, you would have noticed that the banks as currently constituted are exposed to the real sector manufacturing (at least the ones they thought could pay back the loans). Apart from the banks colossal, unhealthy and greedy exposure to oil and gas sector, manufacturing is the next biggest exposure.

@ coolG thanks for submission, but categorising the banks will make them consentrate on a particular market,
eg morgage will consentrate on finacing homes , international will concentate on finacing export and import.

i have being to banks in Abuja looking for bankers(mainly branch managers) that understands NXP form for export trasaction but non know it. i have to educate them and where they can get it form.

categorising the bank will make them to be trained in the verious categories, which will forster professionalism

Sanusi is simply confused. The bottom line is that he is not ripe for this kind of a job and most importantly ill prepared.

I doubt if Sanusi clearly understands his job beyond a regulatory agency. The CBN Gov. is supposed to be an economic manager from the monetary policies angle.

He should resign and go, he lacks the capacity and the intellectual depth require of a CBN Gov.

compare him with the likes of Bernake, Trichet or King he is mile apart

Mallam Sanusi,

I do not think breaking up banks is in line with international best practices. There are so many universal banks (Citi, B of A, JPMorgan Chase, Barclays, RBS, UBS to name a few). And if Sanusi is confused about Obama's plan to prevent universal banks from engaging in proprietary trading, then that is something totally different. How much of investment banking work do we really do in 9ja? There are very few M&A deals or PE deals, and we don't have any form of proprietary trading so I think the rule is completely irrelevant.
What we need is adequate supervision from the regulators (SEC and CBN). Banks should not be allowed to lend customers money to buy their own stock and regulators should limit a banks loan exposure to any industry. Universal banking is good for the banking and the economy as whole but what we need is adequate regulation to ensure banks do not take excessive risks.

OMG,not Sanusi again

coolG:

[color=#006600][/color]

Once again, i am forced to state that your arguments always seems to project you as someone sitting on one side of the fence irrespective of superior arguments, evidence and facts. Someone just called you out on your consistent understating of the work of previous CBN administration, you denied it but simultaneously launched an attack on the previous CBN Governor that his background does not prepare him for that aspect (i guess you are referring to supervision) of the CBN. What in your humble opinion, does the current CBN Governor not have in his background to prepare him for any aspect (you can think of) of the CBN?  

International exposure, which would affect his monetary policies. 

I cannot really understand why some people are so much out for Sanusi's blood, saying he ruined the Baking sector. The man he's simply cleaning up the mess that has being made by some people before him who are definitely not patriots of this country. Cry all you can, but there is no way Soludo can occupy such a lofty position without being aware of all the rot and sharp practices that were going in the system by the CEOs and management of the banks.

Soludo he's very much liable for the terrible state the banks are in now. In a country with law and order he will be in prison by now. I've heard many say on Nairaland that Sanusi should just have left things the way they were, that he only made things worse.

Can't people understand that if those measures were not taken, when it gets to a point everything will just collapse. Is  it possible for any reforms to take place while the old CEOs were still tightly on their seats. Won't they resist every move Sanusi makes. They were ruling the Banks like it was their private kingdoms, doing whatever they like with people's sweat.

Now to go to the point. I'm not a banker but the idea behind making a divide between Commercial banking and Investment Banking (the 2 arears  which mainly constitute Universal banking) is so simple it's commonsensical

Universal baking may be the trend in the world now, but Nigeria is a peculiar country. It is because of Universal Banking that the cEOs were able to loot the bank as if there politicians and the people's deposit was public treasury. It was because of universal banking that a Cecelia Ibru was able to approve gigantic loans to a infant company investing in real estate (investment banking), only that the company was secretly owned by her and through the company she had acquired over a hundred properties in Dubai. That is just single case and it is not an isolated incident.

The primary duty of banks are to develop the economy and not to trade. Development of the economy, the real development takes place through traditional Banking. You give loans business men: people who need like a 100k, 250k, 500k, 1m, 2m, for small and medium enterprises. It is the bulk of businesses like this that takes an economy of the woods into glorious sunshine.

But what happens in Nigeria: they deny all this people facility to loans under the guise of all sorts of reasons and they turn around to give millions of dollars to themselves and their friends. Most of the companies awarded these fantastic unsecured loans are into one high risk investment business or the other, but most times it's just a cover. Most of those loans are taken with no intention of paying back

The CEOs are not intersted in traditional Banking anymore, like a projects manager being assinged to small and medium bisiness, which they will grow and the bank will make money from the interest they get from the loans obtained by the citizens. No, it is too slow for them. And really, they have come to despise the miserable looking citizens who are daily begging the banks for loan facilyies. They only want to roll with the big players who are mostly crooks. They push to one side the genuie business men who will generate real waeth that will raise estandard of living and not.
some stupid statical figures.

So by restraining the mega bank(s ( they are the ones that will have the required capital) to traditional banking, the CBN makes sure they do what they are supposed to do, real banking activities; that they help develop the economy, that they be bankers and not traders.

This way they will stop using the people's deposit to fund their lust and ambition for empire-building under the guise of universal banking; stop giving loans to fictitious companies. They will stop using the bank's resources to manipulate the stock  market and concentrate on real banking activities.

In another countries this may not be necessary but Sanusi has thought it through and decided to give it what it takes.

i think in this country we never think of the future. We just follow what westerners do and do it wrongly. I have the feeling that sanusi just listens to the debate that goes on about the current financial crisis and he tends to lean towards traditional bankers and hardliners in the west, but western government that adopted the policy of combining commercial and investing banking together in the early 90's are not foolish enough to abolish such policies now until the investment arm of their big banks cover up the losses made by their commercial arms.

i dont understand it when people say that banks can now borrow money to the real sector. i wonder the real sector we have in nigeria that can generate enough operating profit to pay interest on a 30 percent loan.

Does this mean no more ATM? We are going back to the stone ages, arent we?

akintun:

i think in this country we never think of the future. We just follow what westerners do and do it wrongly. I have the feeling that sanusi just listens to the debate that goes on about the current financial crisis and he tends to lean towards traditional bankers and hardliners in the west, but western government that adopted the policy of combining commercial and investing banking together in the early 90's are not foolish enough to abolish such policies now until the investment arm of their big banks cover up the losses made by their commercial arms.

i dont understand it when people say that banks can now borrow money to the real sector. i wonder the real sector we have in nigeria that can generate enough operating profit to pay interest on a 30 percent loan.

As far as I know, legal Universal Banking in the US started post 1999, after the passing of the Gramm-Leach-Bliley Act. The US acted retroactively to legalize the illegal moves of banks like Citigroup who had earlier acquired Travelers. The move was pushed by the big banks, and there was nothing conclusive on if the move would be beneficial to the entire economy. In retrospect, the US government is having second thoughts.

I agree with Sanusi on this. With all of his supposed faults, the man has some streak of genius and decisiveness in him. The western nations, especially the US and UK have tried repeated to introduce a semblance of what Sanusi is proposing through the front door, the back door, the roof etc without success. The powerful lobby groups that these banks employ have made sure these reforms do not see the light of day as they have made it clear that they are prepared to go to any length, whatever the cost to maintain the status quo (same way our corrupt politicians are prepared to unleash armageddon if their positions are threatened). In short they would make it political suicidal for any western political leader to insist on these changes, hence why Obama had to water down his approach.

Not all banks can be Universal Banks, nor indeed should be allowed to be UB without meeting the most stringent criteria. I believe where banks have universal banking licenses there should still be a separation of operations between commercial (traditional) banking and other aspects. The reasoning here is that they would be unable to use regular depositors funds to run their other speculative and high risk business which is the trademark of Investment Banking worldwide. Investment Banking operations should be funded from investment accounts and other sources who are in no doubt what their funds are to be used for and therefore aware of the risks involved. This is unlike the current situation where you put your hard earned money in a savings account for some future plans or a rainy day and a 'smart' Investment Banker uses these funds to play the market at your risk and then waits for a bailout (still at your expense) if the worst happens! Unacceptable!

Commercial banking is not risk free,  but it does not by a long shot compare to the level of risk investment banks are prepared to take. If I go into a casino to gamble, I know what to expect, not putting my money in a bank and it ends up in a casino!

The guy means well and besides it will encourage specialization.

wyt:

@ coolG thanks for submission, but categorising the banks will make them consentrate on a particular market,
eg morgage will consentrate on finacing homes , international will concentate on finacing export and import.

i have being to banks in Abuja looking for bankers(mainly branch managers) that understands NXP form for export trasaction but non know it. i have to educate them and where they can get it form.

categorising the bank will make them to be trained in the verious categories, which will forster professionalism

u must have gone to the wrong place asking for the wrong documents.

if you think this structure will enable bank to lend to the real sector? ure joking.
No capitalist will give out money if the money will not yield returns. If the social overheads are not in place, our manufacturing companies are still not making money and not producing at optimum level, no bank will give them money even if the CBN makes pronouncements on that.

Sanusi (college boy banker) is the next guy to be sack, he enjoy creating crisis and cant manage it when it snowball, he has not completed the reform he started .jumping into another one,

We have not recovered from the first shock, the poor guys suffer most, mass sack,

this is sheer madness. pray, how do you regulate the huge number of players that will parade themselves as banks when this comes on board? this system didnt work in Nigeria before so how come it suddenly can now? a lot of people will start opening family banks that will end up enriching them to the detriment of depositors. lets be careful pls

its pretty obvious why he is pushing for this. it wont stand the test ot time. what we need is to strenghten the existing banks and return them to 2006-2008 levels when they provided for much momentum to the economy which sanusi stalled as soon as he came on board and is now looking to pushing us much further back

for those arguing in his favour now, just wait and see. i wouldnt want to hear your moans then

http://234next.com/csp/cms/sites/Next/Money/Business/5542188-146/story.csp

Finance experts have affirmed that the embargo on universal banking is not likely to have adverse effects on Nigeria’s banking climate, if the requirements for such transitions are met appropriately.

Gamaliel Onosode, Chairman, Zain, and a leading boardroom player in Nigeria’s corporate environment, said the policy is a welcome one, as he did not think it was a good idea introducing universal banking into Nigeria.

“I can only say that I am delighted. After trying it for the years that they have, the Central Bank has now come to the same conclusion that I had at that time, just as when consolidation was introduced. I felt that room should have been created for banks that still desired to remain relatively small as quality is not equated with the size of the bank.”

Akinbamidele Akintola, finance analyst at Renaissance Capital, an investment firm said, “Right now, you have a situation where banks have insurance companies, stock broking companies, and all other sorts under them in the name of ‘universal banking.’ What they are hoping to do is make sure that banks focus on their core designation, like if a bank is a commercial bank, all it does is core banking activities.

“I do not think this should adversely affect the banking industry, but the concern is, does the Central Bank of Nigeria have the manpower, efficiency, and capacity to really execute this? That is the concern,” he said, adding that the CBN did not state if the new policy was to affect existing banks or interested parties.

Back to the basics

Mr. Onosode argued that the abolition of universal banking would effectively mean all smaller banks can now exist to run in a capacity that would be convenient for what they were specialised in.

Why aren't the bankers opposing this new proposal?
Listening to many internet warriors that think the CBN is about one man vs the other is nauseating!!

Dis Guy:

http://234next.com/csp/cms/sites/Next/Money/Business/5542188-146/story.csp

[color=#000099][/color]

Why aren't the bankers opposing this new proposal?
Listening to many internet warriors that think the CBN is about one man vs the other is nauseating!!

hahahaha
some of the guys posting here are bankers

what do u expect a rencap guy to say? lol
nyways, the new initiative shd make sense

efrebody for NL know say you be banker

I'm talking CEOs, University Profs and co, since the beginning of the Sanusi era they've been very quiet

Dis Guy:

efrebody for NL know say you be banker

I'm talking CEOs, University Profs and co, since the beginning of the Sanusi era they've been very quiet

ure not serious oo

i get ur point.
But some group of professionals have been sponsoring adverts on the pages of newspapers attacking sanusi and his programs