smooooooth:

SLS seems to concentrate on one aspect of his job, bank regulation while ignoring a more important aspect which involves building the economy. he shld be able to strike a balance, in a growing economy as ours, growing a healthy economy shld be paramout to strict regulations. unbundling the banks at this time isnt the best policy, instead he shld discourage them from taking on propretary trading. most brands globally are growing to be UB's , SLS shd encourage UB, i see no reason why a bank cant take on commercial and invesment banking with the proper regulation in place. This policy is taking us bank to the pre-banking years.

tkb417:

read the proposal very well and be sure of what it is b4 u make comments

and what do u mean by pre-banking years

smooooooth:

and wats in the proposal, pls explain it to me.

and by pre-banking years, u dnt need to be humorous

to know i meant we going back to the dark age.

tkb417:

we cant go back the dark ages cos the proposal is seeking for specialization in all facets of banking
in the dark ages, did we have institutional investment bankers in the country?

even now, we have bankers that are specialized in their dealings. Rencap will not collect deposits from people, Chapel Hill, BGL wouldnt do all those. If you know your core area is commercial banking, give it the best shot and be the best at it.

smooooooth:

i am a proponent of profesionalism and specialization, and i really unstd wat u saying, but in this case, aint we just going backwards when we shld be moving ahead with the rest of the world. i cant be too sure, but werent some big banks specialised banks b4 they became UBs, like the JP Morgans, and barclays, (aint specialised banks in nigeria hoping 2 go into UB someday 2 ) and if i am correct this banks have gone thru the phase of bundling, unbundling and re-bundling, one will wonder why that have happened, prolly they have finally settled for whats best and more profitable. ( i stand to be corrected dou) and if i am correct , shldnt we learn from those that have walked the same path we bout to take.

nway, wherever this leads, let the whole reform be fasktrack so we can get on with our lives again. by the way i'm in specialized (strictly investment) banking. so dou i argue in fv of these banks, this is good news to me.

tkb417:

Good one!!!
Good to meet a fellow IB

smooooooth:

good to meet u too, i have been following u and Jarus for some time now and must confess u guys are very impressive. reason i asked for your mail sometime ago. nway u guys are doing a good job educating peeps bout IB.

smooooooth:

good to meet u too, i have been following u and Jarus for some time now and must confess u guys are very impressive. reason i asked for your mail sometime ago. nway u guys are doing a good job educating peeps bout IB.

Jarus:

I just had a brief, though very exposing, stint in investment banking. I'm now in oyel and gas.
I don't think I can go back to IB, the stress is too much, as I'm now used to this O&G thing. I'm even pushing for a more stress-free one like solid govt agency(CBN, DMO etc). ise die, owo pupo l'emi tasi o

Jarus:

I just had a brief, though very exposing, stint in investment banking. I'm now in oyel and gas.
I don't think I can go back to IB, the stress is too much, as I'm now used to this O&G thing. I'm even pushing for a more stress-free one like solid govt agency(CBN, DMO etc).    ise die, owo pupo l'emi tasi o

Nokka:

The CBN cannot find investors for established banks including Unity Bank with 19 captive state governments. Verifiable financiers are yet to be found for the NNPC, the much touted and government-backed agricultural fund, and course NITEL. Somehow genuine operators will line up for licences because that is what is being done in America. We are still waiting for the investors lined up to take over distressed Nigerian banks as touted by many press releases.
When we had fragmented licenses what was the effect on the economy? How many loans did they grant? How many workers did they employ? What was their effect on major Nigerian businesses? This is simply returning to the status quo ante of the 80's and 90's with failed banks galore with insufficient capital bases to get into major deals in oil & gas, telecoms and major construction financing. If all those banks did was finance importers and forex round-tripping in the 90's, where is the proof they will be different now under another name?
Despite our protests we deserve the government we get.

akinyemo:

Why can't he build on what the past Governor did?

WASHINGTON -- A group of U.S. and foreign bank regulators has agreed to move towards creating stricter capital requirements for banks around the world, marking a reversal from a push just a few years ago to give financial institutions more flexibility in how they calculate reserves.

The Financial Stability Forum Thursday embraced for the first time the idea of a capital floor for banks, referring to it as a "supplementary non-risk based measure to contain bank leverage."

"There was a consensus that there was not enough capital in the banking system coming into this," U.S. Comptroller of the Currency John Dugan said in an interview.

The release of the Financial Stability Forum report is designed to coincide with the conclusion of the Group of 20 summit, where financial regulation was a hot topic. The G-20 has in the past called for the Financial Stability Forum to have more power as a global coordinator of banking policy, giving increasing weight to its recommendations,

biina:

We should be careful of using the US as a model example, as their policies and actions have often favored the big banks having political clout, at the expense of smaller ones and tax payers. The recent bailout of some selected institutions has cost the public about $400billion, while about 200 others have gone belly up (see http://www.fdic.gov/bank/individual/failed/banklist.html).

manny4life:

You quickly forget that those "big banks having political clout" are the same ones that account for the nations economical productivity, largest employment in the industry and I mean service industry our economy largely depends on this banks to certain extent. About the bailout, you are quickly to assert the amount disbursed, you forget that this same institution played important roles in our economy. For instance Bank of America received money from those funds, but would you compare the amount of loans that BoA gives to some local community bank down the street? This is commercial banking, now lets see investment banks, Goldman Sachs received money as well, would you compare them to the local investment bank in your area ans is NO. Please listen to President Obama very well to know why he ordered them to disburse large sums particularly to selected banks so they can stimulate the economy. Don't forget that many institutions are repaying back their debts back to U.S. govt Goldman Sachs being no.1. As for the ones that went belly up like Lehman Brothers, they weren't worth saving.

biina:

In summary, uneven standards.

manny4life:

How do you mean uneven standards? All banks are not the same size both on the market and on their books, so explain further please.