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toubab1020
12314 Posts |
 Posted - 22 Apr 2009 : 22:00:04
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The IMF is concerned,there are Nigerian Banks in The Gambia should depositors be worried? I dont understand all this financial stuff but there are those on Bantaba in Cyberspace who do,what do they think,there will probably be no comments as the topic is not about politics, poetry, or that other subject which gets great many postings here,lets see shall we!
Read this from a Nigerian Newspaper:
http://www.independentngonline.com/news/tfpg/article02
Snippet:
"The three areas of concern in the report are current account balance, average real credit growth over the last five years, and loan/deposit ratio.
It showed that current account balance of banks in Nigeria is - 9.0 per cent of Gross Domestic Product (GDP), and that net external position vis-a-vis Bank for International Settlement (BIS) reporting banks is 10.3 per cent of GDP.
Average real credit growth over the past five years on year-on-year percentage is 34.2 per cent, according to the report.
Cut off values are -5 per cent for GDP for current account balance, net external liabilities to BIS reporting banks is above 10 per cent of GDP, and average real growth of credit to the private sector is greater than 30 per cent year-on-year.
I HAVE NO IDEA WHAT ALL THIS MEANS ANYONE TRANSLATE FOR ME?
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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toubab1020
12314 Posts |
Posted - 30 Apr 2009 : 00:18:02
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| No one has deposits in a Nigerian bank then? or are they like me just don't understand all these words that are used ,I can just see everyone at any meeting where this stuff is quoted just nodding their heads in agreement,what are they agreeing to,?they are like me they have no idea at all,no wonder the banks caused the world financial crisis,they did just what they liked,why because nobody could understand what they were talking about! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Prince
507 Posts |
Posted - 30 Apr 2009 : 10:54:33
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2bab,
These words too complicated for my tiny brain to understand and my big lips can't even pronounce some of them
Shamefully, i studied economics.
I know for sure that a SIGNIFICANT percentage of these Nigerian banks are well run PONZI schemes. |
Edited by - Prince on 30 Apr 2009 10:55:46 |
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toubab1020
12314 Posts |
Posted - 30 Apr 2009 : 11:18:35
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Thanks for your input Prince,at least you know what a PONZI scheme is, which is more than I do |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 30 Apr 2009 11:19:22 |
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jammin
Jamaica
149 Posts |
Posted - 17 May 2009 : 05:18:11
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quote:
Originally posted by Prince
I know for sure that a SIGNIFICANT percentage of these Nigerian banks are well run PONZI schemes.
Here is a rule of thumb.
A Nigerian managed business opportunity,
Correct response : ....... gracefully decline. |
Like a colossus He doth bestride the Narrow World |
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Santanfara
3460 Posts |
Posted - 21 May 2009 : 13:39:36
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toubab, the comments you cited are not in full to understand the whole picture. but a friend of mine who worked in the Nigerian banking scetor for a long time and completed his master program with me did this study on Nigerian banks. it a long decoument, i took a few section out of the paper. i hope it help you a bit.
By M Buba: 2008
Distress in the Nigerian Banking Industry (1993 to 1999)
Distress in its simplest meaning connotes “unhealthy situation” or a state of inability or weakness which prevents the achievement of set goals and aspirations (Ologun, 1994). Relating this to the Nigerian context, distressed banks experience performance often times on a continuous basis, which do not conform favourably with established parameters for evaluation of the financial health of banks in general. Distressed banks usually have problems relating to liquidity, poor earnings and non-performing assets. The common features associated with distress banks in Nigeria as identified by Gbojikwe (1996) are:
• Large volume of non-performing assets
• Persistent liquidity deficiency
• Accumulated losses which erodes shareholders’ funds with time
• The bank will in most cases require financial assistance from regulatory authorities.
Many observers in the industry opine that most distressed banks will have a combination of these features if not all. Hence, it is the responsibility of the regulatory authorities to identify and address early symptoms of distress in order to prevent total collapse of an affected bank. Additionally, looking into the Nigerian context, Magaji (1996) classified distressed banks into three categories namely: illiquid but solvent, insolvent but liquid and illiquid and insolvent (cited by Gashinbaki, 2000:57). First, an illiquid but solvent bank cannot meet its customers’ obligation such as withdrawal demand, even though it has realizable assets more than its liabilities. Second, an insolvent but liquid bank on the other hand, can meet its customers’ obligations but has realizable assets that are less than its liabilities. This results in deficit equity in sample terms. Third, an illiquid and insolvent bank cannot meet its customers’ obligation and the bank’s liabilities have exceeded the realizable assets. Institutions under this distress type are failed banks and may have to be liquidated as they cannot even be sold as going concerns.
The 1990s witnessed high level of distress in the Nigerian banking industry. For example in 1994, there were over forty (40) distressed banks. The number increased to an average of fifty (50) between 1995 and 1996. The distress in the industry exacerbated by December 1997 which resulted into the CBN revoking the licences of twenty six (26) terminally distressed banks (13 commercial and 13 merchant) in 1998 (CBN, 1998:19). The NDIC was appointed by the CBN to liquidate the affected banks. This feat by the CBN had helped reduce the number of distressed banks from forty seven (47) in 1997 to twenty two (22) as at December 31, 1998. Additionally, efforts by shareholders’ to recapitalize their ailing banks helped dropped the number of distressed banks from twenty two (22) as at December 1998 to ten (10) as at December 1999 (CBN, 1999:34). Refer to Appendix II for data on the proportion of distressed banks operating in Nigeria between year-end 1994 and June-end 1996 as reported by the CBN in 1997.
4.2 Causes of Bank Failures in Nigeria (1994 to 2006)
A bank which falls under category three (3) of distress as mentioned above, leaves the regulatory authorities with no option but to liquidate it. Liquidation simply means disposing of a troubled bank’s assets with a view to settling its creditors, depositors and at last shareholders. The process usually starts with taking over management and control of liquidated bank by the CBN/NDIC. The upsurge in distress in Nigerian banking industry in the 1990s had seen many banks collapse and subsequently liquidated by the CBN/NDIC. For example, four (4) banks were liquidated in 1994, one (1) in 1995 and twenty seven (27) in 1998, three (3) in 2000 and fourteen (14) in 2006. The number in 1998 increased sharply because of the deepening distress crisis experienced throughout 1997 where as banks liquidated in 2006 were those unable to meet the new minimum share capital of N2,000,000,000. Refer to Appendix III for a breakdown of liquidated banks during the periods 1994 to 2006.
Overall, it has been observed that the performance of banks on the aggregate deteriorated due to infiltration of poor responsibility and resource management into the banking sector which encouraged operational failures and ineffectiveness in the performance of banks (Gashinbaki, 2000:63). In Nigeria, several factors have been responsible for collapse of banks. These factors include the following:
4.2.1 Capital Inadequacy
A large proportion of Nigerian banks in the 1990s were undercapitalized. The reason been that many of the banks were established with little capital-base, particularly, state owned or family owned banks. For example, in 1994 the minimum capital requirement for banks to operate in Nigeria was N50 million (US$2.3 million) and N40 million (US$1.8 million) for commercial and merchant banks respectively (Brownbridge, 1998). The repercussion of these insufficient shareholders’ funds is that some banks utilize depositors’ funds to acquire fixed assets and defray overheads. Consequently, the capital base of these banks becomes inadequate to support their risk assets and absorb losses. This in turn will make such banks prone to failure in the end. The Nigerian government in response to this problem has had to improve the minimum share capital for banks at different periods: N500 million in 1998, N2 billion in 2000 and N25 billion in 2005 for all banks respectively.
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Surah- Ar-Rum 30-22
"And among His signs is the creation of heavens and the earth, and the difference of your languages and colours. verily, in that are indeed signs for men of sound knowledge." Qu'ran
www.suntoumana.blogspot.com |
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toubab1020
12314 Posts |
Posted - 21 May 2009 : 15:27:33
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Thanks Jammin for your reply,
Santa thank you for your input I have read the words of your friend which you quoted,and I think that the best thing maybe is to go with the reply that was given to me by Jammin which was:
"Here is a rule of thumb.
A Nigerian managed business opportunity,
Correct response : ....... gracefully decline." |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 21 May 2009 15:31:36 |
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toubab1020
12314 Posts |
Posted - 07 Aug 2009 : 01:31:14
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Another one opens this from the D.O.:
http://observer.gm/africa/gambia/article/another-bank-commissioned
http://www.skyebankng.com/
I wonder if they have an ATM that accepts Maestro/Visa /mastercard ?
They may well do !
I also found this which I found interesting:
http://www.tradingmarkets.com/.site/news/Stock%20News/2258147/
Snippet from the above link:
"A similar survey of the banking industry on Corporate/ Commercial customer segment has the following bank on its top ten: Zenith, GTBank, Skye Bank, Standard Chartered Bank, Diamond Bank, Access Bank, FCMB, First Bank Citibank and Intercontinental Bank."
Well you can pass quite a bit of time reading all this information
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 07 Aug 2009 01:35:36 |
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lamby
United Kingdom
16 Posts |
Posted - 07 Aug 2009 : 22:19:43
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| like you i don,t understand all this banking jargon,but it seems Nigerian banking is operating quite a lot in Gambia.i referred in a previous post about a few Euro atm,s started up in Gambia,someone told me they have Nigerian interests,wether it,s true or not i don,t know.but good sound advice is,steer clear of these people and you won,t get burnt. |
bss. |
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njucks
Gambia
1131 Posts |
Posted - 09 Aug 2009 : 18:57:44
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i think we should see what is in the best interest of the average gambian and not our own '' fears''.
firstly i think after more than 150 years, rather than just have one european bank in the country its good to have a choice!
competition is good. what matters is not what the IMF thinks about banks in Nigeria but what Banks in The Gambia report! where was the IMF when the banks in Europe/US were in ''distress''. if it couldnt see that coming i just dont know how it can speak now.
but then we always have to have a different standard for Africa i guess.
as far as i know, Trustbank, SCB and GTB etc all reported profits!
also banking is not just about DEPOSITS. its also about lending. anyone who can lend gambians money is a good thing.
every gambian has a choice, if you dont want to keep you money in a bank, one can always put it under the matress as Kondorong's guys do.
finally, i think, we should also appreciate investors who bring their money to our country and employ our youths etc. imagine how many families from drivers to accountant are puttting food on the table.
many of these banks infact have sizeable gambian shareholders. ordinary people who have invested their money in these institution.
a united africa will only kick off with intra-africa trade/investment. atleast africa's money is now being invested in africa. |
Edited by - njucks on 09 Aug 2009 19:02:04 |
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toubab1020
12314 Posts |
Posted - 09 Aug 2009 : 20:41:16
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If the IMF was concerned in April this year,then perhaps others should be concerned,I read what you say and would not disagree with your thoughts all. I would as you to consider is, is the money deposited in "these" banks safe?, will I be able to get it when I want it? and not have to contend with various excuses that are trotted out by banks everywhere,in the UK now the base rate is very low but the banks are not lending money out, if they do the rates are very high,OK put your cash under the mattress and wait for the robber to come and cut your throat.!!Maybe I will become a Monk and leave my life in the hands of God ! |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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mansasulu
997 Posts |
Posted - 10 Aug 2009 : 19:17:20
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| Speaking about Banks, whats up with all these banks, some of them with links to Nigerian banks sprouting in the Gambia? My knowledge in economics and particularly the banking sector may be minimal, but I would rather put my money under a pillow than in one of these banks. It appears we have not learnt the lessons of the defunct Continent Bank. |
"...Verily, in the remembrance of Allâh do hearts find rest..." Sura Al-Rad (Chapter 13, Verse 28)
...Gambian by birth, Muslim by the grace of Allah... |
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toubab1020
12314 Posts |
Posted - 10 Aug 2009 : 20:29:25
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quote:
Originally posted by mansasulu
Speaking about Banks, whats up with all these banks, some of them with links to Nigerian banks sprouting in the Gambia? My knowledge in economics and particularly the banking sector may be minimal, but I would rather put my money under a pillow than in one of these banks. It appears we have not learnt the lessons of the defunct Continent Bank.
Was that the One in Brikama that went out of business?, if it was, perhaps you could tell the story as I never knew why it bust. |
"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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mansasulu
997 Posts |
Posted - 10 Aug 2009 : 21:32:40
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It used to be in Banjul opposite the Central Bank and then it moved its headquarters to Kanifing I believe. They may have had a branch in Brikama. Anyway, Continent Bank without any warning to its customers, or fanfare, unceremoniously folded like a deck of cards amid rumours that its propriotors (lebanese, I think) just skipped town with all the holdings.
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"...Verily, in the remembrance of Allâh do hearts find rest..." Sura Al-Rad (Chapter 13, Verse 28)
...Gambian by birth, Muslim by the grace of Allah... |
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toubab1020
12314 Posts |
Posted - 10 Aug 2009 : 21:46:39
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I think its the same one about 6 or 7 years ago?
quote:
Originally posted by mansasulu
It used to be in Banjul opposite the Central Bank and then it moved its headquarters to Kanifing I believe. They may have had a branch in Brikama. Anyway, Continent Bank without any warning to its customers, or fanfare, unceremoniously folded like a deck of cards amid rumours that its propriotors (lebanese, I think) just skipped town with all the holdings.
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"Simple is good" & I strongly dislike politics. You cannot defend the indefensible.
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Edited by - toubab1020 on 10 Aug 2009 21:47:19 |
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mansasulu
997 Posts |
Posted - 11 Aug 2009 : 14:26:27
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| Yep. Same bank. |
"...Verily, in the remembrance of Allâh do hearts find rest..." Sura Al-Rad (Chapter 13, Verse 28)
...Gambian by birth, Muslim by the grace of Allah... |
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