E-Financial
AMCON Declares Bridged-Banks Safe
The Assets Management Corporation of Nigeria (Amcon) has passed a vote of confidence on the three- bridged banks, describing them as safe and sound.
Mustapha Chike-Obi, managing director, Amcon said Mainstream Bank Limited, Enterprise Bank Limited, and Keystone Bank Limited are now financially strong after they have received over N1 trillion bailout fund.
The Amcon boss said the banks are poised for greater performance, since they have overcome their initial challenges.
“The three bridged-banks are among the most capitalised in the world now because all their problems have been solved. They are safe and sound like any other bank in the country. Hundreds of banks have been liquidated in the United States. But here, it is a different situation. The primary objective is that the depositors have not lost a kobo. That has been accomplished. The employees and depositors are safe.”
He said corruption, mismanagement and lack of capacity are the problems that culminated in the take-over of the five troubled banks. He said the past managements of the banks did not know what they were doing, arguing that the issue seriously affected the banks’ performance. He said the issues have resulted in the merger and acquisition which the banks have just come out of.
He said the Nigerian banks would be among the best globally in five years time due to measures taken by the regulators to strengthen the industry. Chike-Obi said the banks are going to be stronger in assets and capital base, soon.
In a related development, Ibedu Onyebuchi Kevin, deputy director, Banking Supervision, Central Bank of Nigeria (CBN), said the troubled banks went through seamless mergers and acquisition. He said the CBN will encourage all the banks to sell their non-performing loans to stimulate their growth. He said the banks that took over the weaker banks have the financial muscles to turn them around.
He said AMCON has helped in mopping up the non-performing loans of banks, adding that the issue has rejuvenated the liquidity position of the banks.
E-Financial
Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme
“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.
MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.
Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.
The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.
The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.
E-Financial
CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering
Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.
The inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.
In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN, disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.
“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.
The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.
However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.
Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.
Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.
E-Financial
CBN Urges Banks to Expedite Action on Recapitalisation
Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.
Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.
The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.
Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.
“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”
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