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Nairaland Forum / Nairaland / General / Politics / N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week (40463 Views)
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Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by ribbit: 1:23pm On Sep 13, 2015 |
Kachisbarbie:now this is someone sane talking . 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by chrisemy01: 1:24pm On Sep 13, 2015 |
The sack in Zenith was really true? onatisi: |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Nobody: 1:26pm On Sep 13, 2015 |
Such huge amount of money? I thought that they said that they treasury was empty. So where did the trillions come from? |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Nobody: 1:28pm On Sep 13, 2015 |
Can I hav ur contact Miss? mezebel: |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by mezebel(f): 1:33pm On Sep 13, 2015 |
nedu213:hahahahahaa! |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by ribbit: 1:36pm On Sep 13, 2015 |
bushdoc9919:actually its under sanusi that most banks merged ... Do google search .. |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by airfinance(m): 1:43pm On Sep 13, 2015 |
onatisi: In batches how? Please explain I wanna learn more |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by eromspete(m): 1:46pm On Sep 13, 2015 |
I have a few questions mister/miss - Don't you think that 20,000 accounts spread across many commercial banks is too much for effective financial performance of public funds given the prevalence of corruption in the country? - Is Buhari taking the money abroad? - Can't you understand that the money will be approved and distributed through a main channel? (CBN in this case) Even a seasoned economic team that is honest will see that this has a good potential for proper structure and accountability. FYI.. Buhari is not acting alone. He's responsible for signing and approving decisions but people do advise him although its not public in the form of Ministers yet. Please respond with valid response/argument. And no insults please (many peeps have high tendency to insult on here) eaglechild: 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Sagamite(m): 1:50pm On Sep 13, 2015 |
He pointed out that if government decides to implement the policy strictly, there will be serious liquidity crisis as the top six banks in the public sector deposits control about 70 per cent of total money market liquidity. I guessed as much that was why Zenith was sacking 2000 staff. More banking jobs to go. |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by slydog(m): 1:53pm On Sep 13, 2015 |
Adesiji77: The effect will be much on the likes of zenith bank, first bank etc that HV very active public sector units. Already you see zenith laying off staff, also recall one of the actions of d CBN gov upon resumption was to reduce crr on public sector funds, most esp to help the likes of his bank zenith to give them breathing space on using govt fund to lend. Its means most of these banks that declare over a trillion in deposit will significantly feel the shock of d withdrawal. Mind you, not just the fg alone, some states are also following this footstep by closing several accounts and concentrating on one bank. Kaduna have done same, rivers is doing same. The end result is to force banks to lend to the real sector, yes jobs will be lost here and there, but any bank that wants to remain in business must find ways to lend to businesses and not rely on free govt money with which they use in buying govt treasury bills and earn interest just recycling govt money without impact on the real economy. 4 Likes |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by eaglechild: 1:54pm On Sep 13, 2015 |
eromspete:The point is, you do not do something that drastic at a go, if not it will cause disequilibrium. It must be done systematically in stages. Who are these advisers? Are they seasoned economists? Are they constitutionally empowered to take certain decisions and partake in negotiations or give out relevant information to the international media that will help to bolster investor confidence. |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by asha80(m): 1:54pm On Sep 13, 2015 |
Sagamite:I would love to hear your views on tho vis a vis what is obtainable in uk(that is how uk banks operate and how they sustain themselves) |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Lushore1: 1:58pm On Sep 13, 2015 |
onatisi: Bros i think this will be done in stages as state governments would not be following this order and base on this quote......."However, he noted that the policy is presently predominantly Federal Government account as most states are not eager to toe that line, thereby giving some of the banks a breathing space". |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by onatisi(m): 2:00pm On Sep 13, 2015 |
airfinance:the process can be completed over a period of time and by gradually withdrawing these accounts .for example the government can remove 20 of these accounts from the banking system,allow the banks to adjust and adapt to the changes. Then after a period of time withdraw another bacth . The effects on the system will be minimal |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Lushore1: 2:00pm On Sep 13, 2015 |
refreshrate: Bros i think this will be done in stages as state governments would not be following this order and base on this quote......."However, he noted that the policy is presently predominantly Federal Government account as most states are not eager to toe that line, thereby giving some of the banks a breathing space". |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by juicebox: 2:01pm On Sep 13, 2015 |
An average igbo man in Onitsha does not care if the govt adopts the TSA or not, as long as nothing prevents h from going to his shop in the morning, he's perfectly ok. 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by lagbaja(m): 2:03pm On Sep 13, 2015 |
refreshrate: You have not presented any serious counter argument. Your curses means nothing. To start with, liquidity crisis in Nigerian banks are self inflicted because in reality, they never really borrow as much as they collect from government to the private sector, they actually lend the funds back to the government through bonds and treasury bills. What they have to do to simply sell off their bonds to free up funds. It's only their bogus profitability that will be impacted. According to the Debt Management Office of the FG, as at December 2014, the Federal government's domestic debt stood at 7.9 trillion Naira. Comprising Of 60 government bond and 35% treasury bills. Majority of this bills were bought by Nigerian banks at the detriment of the private sector. If the federal government decides to take 2.6 trillion from the banks through implementation of the TSA, they will only be taking back a fraction over 7.9trillion naira of the bonds and treasury bills they (the banks) invested in. Nigerians stands to benefit more from the Single treasury account. 1. Government bonds are sold at over 10% ( borrowing at 10% interest rate) , a ridiculous amount. The banks use government's money to buy the bonds. Now, the reverse will be the case. Banks will now borrow from government. 2. Banks will have no alternative high yield, low risk investment such as bonds and treasury bills to invest in, they will have no choice than to borrow to the private sector. Real banking will commence. 3. Interest rates will go down since government will now borrow less and at low interest rates. Banks will be forced to source funds internationally at low interest rates and borrow to the private sector equally at low interest rates. 4. The impact of the JP Morgan delisting of our bonds will not be felt so much as government will now access free interest funds from the TSA. 5. There will be transparency in all MDAs accounts. Corruption will be better curbed. 6. Interests paid on domestic debts by the FG will reduce and free up more funds for infrastructure development. 7 Likes |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by nigeriancuban: 2:03pm On Sep 13, 2015 |
mrvitalis:question is not what your country can do for you,if I may ask how much have you generstedy since yr 2000? |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by onatisi(m): 2:06pm On Sep 13, 2015 |
Lushore1:no what that statement means is that state governments wont take their own accounts away from these banks but theirs is negligible .even most of these states are owing banks and the money the banks lend these state governments are FG monies with them that buhari is demanding to be pulled out. Are u getting the picture now 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by iomoge2(f): 2:12pm On Sep 13, 2015 |
refreshrate:Yea, heard of them and seen their name on bills. Thank you. |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by iomoge2(f): 2:14pm On Sep 13, 2015 |
Thank you. I used to think all CBN does is to regulate other banks. Never knew they could operate as one. Dusting my CV to go apply for job there. dazzlingd: |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by iomoge2(f): 2:15pm On Sep 13, 2015 |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by Sagamite(m): 2:17pm On Sep 13, 2015 |
asha80: Bruv, you no fit compare UK banks to Naija ones o. How they operate really depends on the banks. There are 4 traditional business models banks engage in: - Pure retail bank (i.e. banking for the general public and businesses as most Nigerian banks do) - Universal bank (i.e. same as retail but with a strong range of products and international presence, that is what UBA & GTBank are attempting) - Investment bank (i.e. where a bank deals in high finance and might have or might not have a retail side, IBTC is a bit like this) - Bancassurance bank (where a bank is heavily involved in both retail banking and insurance) They do not charge depositors interest for keeping their money, rather, they give them interest. They make most of their money from fees and commission from their products and services. Something they can do because London is a financial hub, the people are highly paid and are open to taking debt or using financial products. Businesses, which are normally bigger than their counter parts in Nigeria, are willing to and have to take banking products. They are willing because they operate in a pretty stable and predictable market, so it is lower risk. Unlike the businesses in Nigeria operate in an unstable and unpredictable market, why would they want to take loans from banks, especially when the interest is punishing? The UK banks take money from the public (salaries, pensions and savings) and businesses (revenues and savings) and then loan it out to businesses and people with a robust risk assessment process. Unlike Nigeria, over here, information is available to make judicious and almost accurate decisions and you can understand the risks being taken. Their sources of deposits is diverse and international. They don't need to depend heavily on any government or business. They don't lend money to big men who then miss repayments and they can't do anything apart from publishing their names in newspapers. They have the following advantages over Nigerian banks: - Large and reliable sources of deposits - International reputation - Available information - Skilled and hardworking staff - Robust regulation - Investment opportunities - Financial and technological innovation If you are in an environment where you can find a lot of money to take, and then find skilled people to efficiently loan it to others for interest, and you have financial products that are relevant to the needs of borrowers and then you give these borrowers reliable channels to borrow the money from you, you will have a successful and strong bank. 4 Likes 1 Share |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by jibbish(m): 2:19pm On Sep 13, 2015 |
refreshrate:Am not a graduate, so I leave you to the analysis. As far as am concerned, in my core area of profession, u are an apprentice. So don't ever come to a conclusion that all graduates don't think. Every man has his strength n weakness. If you challenge me more, I won't answer you cos u jux wanna seek attention. Let's meet on a TV program if u can face me in this discuss 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by TRUTHTOPOWER: 2:25pm On Sep 13, 2015 |
mrvitalis: Good observation. meanwhile Okonjo Iweala has been bewailed as the best miracle worker after Holy Moses. 2 Likes |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by mrvitalis(m): 2:26pm On Sep 13, 2015 |
nigeriancuban:Please if u don't understand what I wrote... . Please pick the nearest economics text book |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by refreshrate: 2:30pm On Sep 13, 2015 |
jibbish: Your first sentence has resolved everything you wrote here. Goodluck in your affairs and ministry...and tv program too |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by biopat(m): 2:35pm On Sep 13, 2015 |
Ayomax: ; I join every well-meaning Deltan to say Amen to that your prayer. I pity the dude cos unlike Ibori, na kirikiri he go end up! 1 Like |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by gannod(m): 2:39pm On Sep 13, 2015 |
jibbish: CBN governor doesn't care abt what happens to the masses because by training,he is a capitalist! We should always think of the nagative effects of a policy before we start applauding those in charge. Now lets think about the job cuts this would cause,the families that would bear the brunt of this... |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by azimibraun: 2:47pm On Sep 13, 2015 |
[quote author=free2ryhme post=37963074] This is d best thing that ever happened in this country Accountability. Dubious account every where. A civil servant on level 10 has a child in secondary sch paying 1.5 million school fees per term. How come. God bless Buhari. You see the curruption president is talking about from Bamk accts. Only pls, we should stop insulting Mr president, he need our support to bring change nigeria for our children to enjoyed. Tribalism, sectionalism,religion fanatics and disrespect to our leaders it will not take us to anywhere. I have it in mind in few years to come, nigeria will be a developed country if coming presidents will work like Buhari. We should have nigeria first in our mind before our interest. My mind spoken. |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by adekaz777: 3:02pm On Sep 13, 2015 |
dammytosh: |
Re: N2.6trn Govt Deposits In 20,000 Bank Accounts To Be Closed This Week by maryhaam(f): 3:13pm On Sep 13, 2015 |
dazzlingd:yea now I know,thanks. |
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