Tag Archives: CBN

Central Bank to Convert Estate Into COVID-19 Treatment Centre as Residents Plan Showdown

The Central Bank of Nigeria CBN is planning to convert it’s clinic inside Garki 2 estate into a Covid-19 treatment centre. Jungle Journalist Media Ltd has learnt.

According to a resident who spoke with our Abuja Correspondent, the clinic doctor and CBN management staff had met officials of the estate association to brief them of the proposed plan but the residents wee against the idea.

Leaders of the association wondered why the clinic inside an estate where more than 200 residents live should be converted into a treatment centre. They said the risks are overwhelming.

“If executed, the estate will have only one entrance instead of the regular two as expected by law. The association intend to approach the court should CBN insist on converting the estate into covid treatment centre”, the resident said while speaking with Jungle Journalist Media Ltd on the telephone.

Below are copies of petition the community has already written to the Governor of the Central Bank, the Coordinator of National Centre for Disease Control, and the Managing Director, Development Control, Abuja.

Please click the link below to watch the residents preparing to protest https://youtu.be/SxEgR1zHYdg

CBN, Bankers’ Committee urge banks to halt workers’ sack

Apparently worried by the looming sack of bank workers and its negative implications for the banking system and the economy, the Central Bank of Nigeria (CBN) and its Bankers’ Committee have pleaded with banks nationwide to suspend forthwith any planned retrenchment of their employees.

The anticipated massive disengagement of the workers is not unconnected to the ravaging impact of the COVID-19 pandemic on the lenders’ operations and the economy generally.

The apex bank’s Director, Corporate Communication, Isaac Okorafor, stated that the decision by the CBN was reached with the Bankers’ Committee at a special meeting of the convened on May 2, 2020.

Specifically, he stated that the meeting was convened to further review the implications of the COVID-19 pandemic on the Nigerian banking industry.

According to him, the Committee particularly deliberated on the issue of the operating costs of banks in view of the disruptions emanating from the global economic difficulties and decided that “in order to help minimize and mitigate the negative impact of the COVID-19 pandemic on families and livelihoods, no bank in Nigeria shall retrench or lay-off any staff of any cadre (including full-time and part-time).

“To give effect to the above measure, the express approval of the Central Bank of Nigeria shall be required in the event that it becomes absolutely necessary to lay-off any such staff.

“The Central Bank of Nigeria solicits the support of all in our collective effort to weather through the economic challenges occasioned by the COVID-19 pandemic” he stated.

One of the banks, Access Bank Plc, was reported to have sent disengagement letters to some of its employees at the weekend even as others’ salaries were reportedly slashed as part of the management’s efforts to cut the lender’s operations cost.

CBN’s regulations put banks’earnings under pressure – GTBank

Following the Central Bank of Nigeria, CBN continuous liquidity tightening regulations in the banking sector the earnings of banks have been projected to come under pressure in 2020.

A report by Guaranty Trust Bank, GTBank Plc titled “Macroeconomic and banking sector themes for 2020” released yesterday stated that in a bid by the CBN to achieve its policy mandates of exchange rate and price stability, growth stimulation and healthy reserves, the apex bank implemented a few monetary policies including the introduction of minimum Lending to Deposit Ratio, LDR for banks, special intervention loans etc targeted at spurring growth in the real sector.

According to the report: “the CBN also restricted investments of domestic investors and local non-bank corporates in Open Market Operation, OMO instruments. The introduction of the minimum LDR of 60 percent (later reviewed to 65 percent) recorded some positives in some areas including a reported increase in gross credit by over N1.1 trillion between May and October 2019, decrease in interest (borrowing) rate by over 400 bases points, bps between June and October 2019.

“As yields on OMO find equilibrium points high enough to sustain the appetite of foreign portfolio investors and low enough to reduce the liquidity management cost of the CBN, we expect the CBN to maintain this policy stance in the near term. That said, there is a chance that OMO rates might increase to incentivize portfolio investment if exchange rate remains under pressure. We also do not expect any changes to monetary policy rate (MPR) at 13.5 percent given the sluggish transmission of changes in MPR to significant impact in the real economy.”

The report further stated that the earnings of banks have come under pressure in the wake of licensed payment service banks (PSBs) and super-agents.

The report states: “In addition, the increase in fintechs and digital banks have also seen banks’ earnings take a blow. For context, fintechs provide a variety of mobile payment, transfers, ride-sharing and food delivery services to their customers which has deepened the competition for retail customers and forced banks to evolve beyond their traditional service delivery systems.

“Banks have now evolved into a simpler, dynamic, convenient and customer-centric strategy. Fintechs thrive on designing their platforms to include e-wallet options for payment which eventually becomes the only form of payment. While it is improbable for e-wallets to completely replace bank accounts anytime soon, its growing popularity should not be overlooked as it could gradually make deposits more expensive and erode a portion of the bank’s payment-related earnings/business.”

“With regard to a proposed recapitalisation for banks, the report noted that the CBN had commenced sensitization of banks ahead of the implementation of Basel III in the course of 2020” the report noted.

Vanguard

Breaking: Alleged ‘new’ ₦5000 & ₦2000 naira notes is out (video)

Even though the Central Bank of Nigeria is yet to release new naira notes, a video of man reportedly depositing the sum of N17million with new N5000 and N2000 naira notes in a bank has hit the internet.

In a corresponding video which has since surfaced on the internet, a woman who probably recoded the rare scenario revealed how the man came to the unnamed bank with the bundle of new 5000 and 2000 naira notes to deposit it, stating that he said the money is N18 million in total.

However, she said upon counting the money, it was discovered to be N17 million.

It is yet to be known how he came into possession of the said notes, the lady in the video who appears to be a staff of the bank, said the man identified himself as a madman.

Click the link below to watch video –

https://t.co/mW0n83geZ4?amp=1