Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / NewStats: 3,168,868 members, 7,872,884 topics. Date: Thursday, 27 June 2024 at 02:06 AM |
Nairaland Forum / Nairaland / General / Business / Interest Rates Will Still Go Up — Emefiele (12732 Views)
Emefiele: Forex Scarcity Bringing Out The Best In Nigerians / China To Start Importing From Nigeria - Emefiele, CBN Governor / Emefiele Predicts Economic Boom For Nigeria In 2018 (2) (3) (4)
Re: Interest Rates Will Still Go Up — Emefiele by Chukzyfcb(m): 12:30pm On Apr 17, 2016 |
LastMumu:True yarns. That's why cbn as the regulator has set a standard for them to operate. By giving banks a limit of 5% for Non performing loans (NPL). And some banks give out "friendly loans" without collecting collateral. The case can be seen with firstbank, where it has been reported by sahara reprorters that 2 prominent men owe them the sum of 120billion naira "without collateral". And both men operate in the Oil sector, with the fall in Oil price, its been having a toll on firstbank. From the comments alone on NL, you would see how people are groaning of the "crazy charges" from FBN. Feb 25,2016 FBNH GTB Zenith UBA ACCESS Exposure. 47% 33% 22% 21% 25% To oil & gas NPL ratio. 4.8% 3.1% 1.6% 2.1% 4.6% (Liimit of 5.0) BOFIA - banks and otheer financial institution act says its criminal for banks to issue loans without collateral. All the same, that's the problem of the bank. If they were to follow the standards of operating loans set by CBN and also give out loans to individuals in other sector other than Oil. Having a high NPL wouldn't be much of an issue. |
Re: Interest Rates Will Still Go Up — Emefiele by Chukzyfcb(m): 12:31pm On Apr 17, 2016 |
LastMumu:True yarns. That's why cbn as the regulator has set a standard for them to operate. By giving banks a limit of 5%. And some banks give out "friendly loans" without collecting collateral. The case can be seen with firstbank, where it has been reported by sahara reprorters that 2 prominent men owe them the sum of 120billion naira "without collateral". And both men operate in the Oil sector, with the fall in Oil price, its been having a toll on firstbank. From the comments alone on NL, you would see how people are groaning of the "crazy charges" from FBN. Feb 25,2016 FBNH GTB Zenith UBA ACCESS Exposure. 47% 33% 22% 21% 25% To oil & gas NPL ratio. 4.8% 3.1% 1.6% 2.1% 4.6% (Liimit of 5.0) BOFIA - banks and otheer financial institution act says its criminal for banks to issue loans without collateral. All the same, that's the problem of the bank. If they were to follow the standards of operating loans set by CBN and also give out loans to individuals in other sector other than Oil. Having a high NPL wouldn't be much of an issue. |
Re: Interest Rates Will Still Go Up — Emefiele by lashout1: 12:54pm On Apr 17, 2016 |
Chukzyfcb:Yes you are good on its influence on money market. But I thought the best government policy is evaluated with that which makes more citizens better off and less worse off. How many person are in with the money market, if not the same microscopic few. They shld have considered the effect of interest rate on capital market mainly and fairly on commodity. |
Re: Interest Rates Will Still Go Up — Emefiele by Chukzyfcb(m): 1:11pm On Apr 17, 2016 |
lashout1:You are right bro. Its tough to favour both sides with high/low interest rate knowing fullywell that inflation is rising. It must be tough for the economic team. The interest rate was reduced, MPR reduced so banks would stimulate the economy by giving out loans. But it didn't work, rather our GDP sinked lower to about 2.8% in the lastquarter of 2015....while the growth of the nation was falling, our Inflation rate rose higher from 11-12%. So u see, cbn has tried that measure. Foreign Investors are taking out funds more than they are bringing in. Because the low rates wasn't favourable. Many people even on NL described how inflation was a result of the forex scarcity and not too much liquidity, wht did the govt do? They just signed a deal with china so as to reduce the pressure on dollar which is the major curency in our reserves , thus indirectly impacting on the inflation rate & reducing the forex rates. Also, they try to suck out the excess liquidity in the system same time attract local and foreign investors (FPI) back with the propsed high interest rate. Overall, it seems to be a win-win situation #but these are all speculations, reality would soon tell us if the speculations are right or wrong. |
Re: Interest Rates Will Still Go Up — Emefiele by Icecomrade: 1:21pm On Apr 17, 2016 |
LastMumu: I was about educating you until I saw your user name "Last Mumu" I knew it would be a waste of time. U wont assimilate anything |
Re: Interest Rates Will Still Go Up — Emefiele by Nobody: 1:32pm On Apr 17, 2016 |
Icecomrade:Lol, go and educate yourself, you obviously need it more. |
Re: Interest Rates Will Still Go Up — Emefiele by lashout1: 4:07pm On Apr 17, 2016 |
Chukzyfcb:Yes! Ema akwukwo. reality will tell. |
Re: Interest Rates Will Still Go Up — Emefiele by aloeman15(m): 5:25pm On Apr 17, 2016 |
I think most of us have missed the actual problem, which is- You can't run a nation's economy with only fiscal/mpr policy! The cbn is currently the only visible agency that's attempting- and failing- to address our widespread economic problems. There's NO WAY it can succeed. But even in monetary policies, it's making serious errors- like the IMMEDIATE ban of those 41 items from accessing forex, when a deadline would've worked better for everyone. And guess what? Since they had to create means of getting forex, has the importation of those items dropped significantly? Has our economy benefited by any comparative measure? I guess the ons can tell us. Let's look at a different angle- One import shipment of petroleum products is more than all those 41 items' imports in a year! So what was the point? Eye service. The guy who talked of refineries also got it wrong. Our problem isn't importing petrol. Many nations do that. Our problem is running the ENTIRE NATION on imported fuel! That is both insane and unsustainable. Our entire focus should be on power generation. It's the ONLY solution to BOTH our fuel import and diversification problems. It will slash the import bill by up to 60% short term and- through diversification- cut a further 15-25% through CHEAP local production. So. That question I asked in my thread- Where on earth is fashola?! |
Nylon (santana) Business. How Profitable Is It And What Loss Is Incurable? / Get Your Profitable Small Scale Business Easily Started And Successfully Managed / How To Log Out Of Your Old Opay Account
(Go Up)
Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health religion celebs tv-movies music-radio literature webmasters programming techmarket Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 36 |