Commercial banks – I Have 50 Dollars Tue, 22 Nov 2022 05:06:42 +0000 en-US hourly 1 Commercial banks – I Have 50 Dollars 32 32 Shareholders outraged at AMCON’s ‘excessive levies’ on commercial banks | The Guardian Nigeria News Tue, 22 Nov 2022 04:01:00 +0000

Seemingly upset by levies imposed on commercial banks to prop up the Asset Management Corporation of Nigeria (AMCON) and falling investment returns, shareholders have urged the federal government to tighten the noose on debtors and urgently release banks from AMCON’s operational burden.

Shareholders under the umbrella of the Independent Association of Nigeria (ISAN) have expressed concern over the huge cost to banks. They argued that the company has demonstrated an inability to successfully resolve toxic debts after 12 years of operation.

ISAN Coordinator Emeritus Sunny Nwosu, speaking to reporters in Lagos over the weekend, said shareholders were concerned about AMCON’s reported losses despite collecting huge levies from banks and struggling to sell the recovered assets to debtors.

Nwosu lamented the poor performance of the company, adding that the agency had only recovered a measly 1.4 trillion naira since its inception, with data showing that non-performing loans (NPLs) had risen again by more. by 150%.

He noted that at the start of its operations, the agency purchased 12,743 NPLs or Eligible Bank Assets (EBAs) valued at N3.8 trillion from 22 Eligible Financial Institutions (EFIs) for N1.8 trillion. and added that the company earned about 327 naira. 6 billion fee of 0.5% on total bank assets on and off balance sheet imposed on nine banks between 2020 and 2021.

“AMCON levies on commercial banks have increased from N146.9 billion in 2020 to N180.67 billion in 2021. Bank of Nigeria (CBN) through AMCON, the debt collection agency also received N125.9 billion from 12 commercial banks listed on the Nigerian Exchange Limited (NGX) as part of industry resolution funds in the first quarter 2022.

According to him, AMCON bank charges increased by 29.5% over the same period, from N97.18 billion paid in the corresponding period of 2021 to N125.9 billion in the first quarter of 2022.

“After 12 years of operation of the agency, Nigerian shareholders have come to the conclusion that funding AMCON with levies from commercial banks cannot be continued due to its negative impact on investment returns and the inability of commercial banks to intervene adequately in the country’s real sector,” Nwosu said.

He pointed out that most commercial banks and many companies indebted to AMCON are currently struggling to stay afloat in the face of numerous litigations, as it seems unlikely that the company will achieve its goals.

“Our conclusion is that the company is on the verge of losing Nigerian taxpayers’ money spent buying up critical toxic assets from troubled banks and other entities.

“As concerned domestic investors, our patriotism is beyond doubt as we demand once again the full review of AMCON to determine its relevance to the economy or the total repeal of the agency following the decline in company values ​​taken up by society and to the current national economic challenges,” he said.

He described the federal government’s float of AMCON as a distraction that has prolonged challenges to the banking sector, saying their operations must cease with the huge financial bailout given to banks to shore up their capital as is done in most developing countries.

“Our position, as we have said before, is that AMCON has exceeded its duties and urged the CBN to suspend levies on commercial banks. We are opposed to AMCON successfully lobbying the federal government and lawmakers to expand its operations, but we remain of the view that if CBN is to support AMCON, it should not be done through industry levies. banking.

“In real terms, AMCON’s 10-year lifespan is over, extending its lifespan is like playing games with taxpayers’ money and shareholders’ funds. AMCON is killing the banking industry and the entire financial services industry.

“Overall, we want the federal government to tighten the noose on debtors and reject the aroma of free funds from banking sector levies, but think about the negative impact of levies on the real sector and the economy,” he advised.

Finance committee asks SBP for final implementation report on dollar manipulation by commercial banks Thu, 17 Nov 2022 16:01:41 +0000

Islamabad: The National Assembly’s Standing Committee on Finance met yesterday to express concern over the slow pace of investigation by the State Bank of Pakistan (SBP) into the manipulation of the dollar by commercial banks and the realization windfall profits. He called for the final implementation report to be ready by December 15, 2022, but the SBP assured the committee that the investigation would be completed by November 30, 2022.

The committee was chaired by MP Qaisar Ahmad Sheikh. The bank informed the panel present that action would be taken against banks allegedly involved in overcharging importers when opening their letters of credit (LC).

The Deputy Governor, SBP Inayat Hussain, assured the committee that the process is in the closing phase, and that various banks have been charged, and written responses have also been received from them. In addition, the SBP has strengthened its control and no longer receives any complaints for manipulation.

Earlier in September, the SBP issued a show cause notice to eight banks over allegations of currency speculation. He sought to investigate banks that had opened letters of credit (LC) at rates higher than the spot rate. Banks have autonomy over how and when to issue their LCs, but since the SBP regulates them, they can determine the exchange rate at which these LCs operate.

“Although banks are not required to take losses, they are regulated by the SBP and must follow banking regulations. If you manipulate the market, action must be taken – even Prime Minister Sharif has called for firm action” , Miftah Ismail said at the time of the show cause notices.For context, by that time the rupee had lost 60% of its value.

The Committee reiterated that it expects stiff penalties and fines to be issued to charge Banks.

From June to July 2022, some of the commercial banks that were identified and made exorbitant unfair profits by exploiting the fluctuation of the rupee against the dollar and the huge gap between the free market and the interbank rates. The central bank official, however, said that since August no such cases had been reported.

According to Chapter 2 of the FE Handbook issued by SBP, banks are not allowed to charge more than a defined margin set by SBP. In point 11 of chapter 2, the SBP indicates the authorized exchange rates. If you explore the manual further or ask industry experts to comment on it, they will tell you that Section 4(2) of the Act states that, unless otherwise specified by the SBP, licensed brokers, Authorized exchanges and exchange companies are free to determine the exchange rate. conversion rate from Pakistani currency to any foreign currency or vice versa.

The SBP has granted a general authorization to authorized traders, which allows them to determine their own exchange rates, both for immediate transactions and for forward transactions for the public. However, this is subject to the condition that the margin between the buying and selling rates does not exceed 50 paisa per US dollar or its equivalent in other currencies.

The committee chairman said that the banks have made huge profits due to the spread, but everyone is in the dark about the action taken by the SBP against the banks.

The SBP Deputy Governor said the banks had received supporting notices saying, “We have asked the banks to give a written response and then we will hold a final meeting with them.” He also said that customers had filed written complaints during June and July, but there had been no complaints from them in the past month, mainly due to ongoing actions.

The current account deficit (CAD) is US$2.3 billion, half of last year. The monthly CAD accumulation rate was reduced from $1.5 billion previously to $0.7 billion per month, the banking regulator said.

MP Muhammad Barjees Tahir asked the Deputy Governor of the SBP why there were around 15 rupees split between free market and dollar interbank rates. He asked what action had been taken against those eight banks that had shaken up the economy.

The chairman of the committee said, “today I need dollars, but the banks don’t have any. The Governor of the State Bank is expected to come and answer these questions from the committee as he is the representative of over 22 million Pakistanis.

Capital and financial flows have also decreased, which poses problems of non-availability of dollars. He said the regulator would take enforcement action against the banks this month after completing the investigation, an SBP official said. The SBP Deputy Governor also said that “we have a market-based exchange rate.”

Tahir added that if this time these banks were not punished, they would repeat the same unfair practices to manipulate the market.

MP Khalid Magsi also said the economy was not going in the right direction. During his nearly four year tenure, Imran Khan was directionless and now, after his ousting, this government is also directionless. He further said that despite the fact that Ismail was removed from his position as finance minister and Ishaq Dar was appointed, the situation remains the same.

Supervision of financial business groups of commercial banks that operate businesses and transact digital assets Tue, 15 Nov 2022 05:15:00 +0000

Digital Asset plays an important role in contributing to the development of innovative financial services that benefit consumers and the economy as a whole. However, digital assets are exposed to risks in many forms, especially in cases where consumers have insufficient understanding of digital assets, and are also at risk of being used as a tool for money laundering or terrorist financing. .

In order to balance the support of innovations related to digital assets of the financial business groups of commercial banks for the benefits and risk management that may arise, it is important that the Bank of Thailand improves and defines the relevant rules for operations. business and related transactions. to Digital Asset to be more flexible and to allow discrete investments and business relevant to Digital Asset under the rules and ratio of investment in Digital Asset Business as needed.

Therefore, the Bank of Thailand has issued Bank of Thailand Notification No. SorNorSor. 6/2565 on Regulation on Supervision of Financial Business Groups of Commercial Banks that Operate Activities and Perform Transactions in Digital Assets (“Notification”) which comes into force on October 22, 2022 and applies to commercial banks, parent companies, subsidiaries and affiliates of commercial banks in financial business groups in accordance with the business law of financial institutions with key principles such as : (1) enable businesses in financial business groups, except commercial banks, to quietly operate a digital asset business under flexible regulations, and support technology or financial services development to increase the efficiency of the financial system for the benefit of people, businesses and the economy; (2) overseeing and managing the risks associated with digital asset transactions; (3) to protect consumers and for consumers to receive fair services; and (4) raise the business standard of digital assets.

This notification stipulates that commercial banks may conduct transactions in digital assets but may not operate a digital asset business, and financial enterprise group companies may operate businesses and conduct transactions in digital assets as prescribed in this notice without violating the key principles of this notice and other relevant laws. from Thailand and internationally, such as prohibiting the use of digital assets as means of payment or encouraging the general public to hold digital assets. However, these transactions are subject to the objective of developing innovations to increase the efficiency and quality of the provision of financial activities.

In addition, this Notification also specifies the principles of risk management governance in the following areas:

  1. Limit the amount of credit, invest, create contingent liabilities or perform transactions similar to digital asset related business loans (Digital Asset Related Business Limit)
  2. Monitoring of good governance
  3. Capital Maintenance
  4. Cash maintenance
  5. Classification and Provisioning
  6. Supervision of large debtors
  7. Risk of intra-group contagion
  8. Official supervision (prudential control process)
  9. Disclosure
  10. Know Your Customer: KYC
  11. Consumer protection
Gov Buni instructs commercial banks to open more branches Mon, 14 Nov 2022 07:15:00 +0000

As the deadline for the take-off of new currencies by the Central Bank of Nigeria (CBN) approaches, the Governor of Yobe State, Hon Mai Mala Buni has called on commercial banks operating in the state to open more branches with a view to improving the plight of people living in rural areas, especially those without bank accounts.

Buni, while speaking shortly after the launch of 50 POS machines donated by UBA for revenue collection and remittance to state coffers, said the call became necessary given the nature people, especially those in remote areas.

The governor said many rural people in northern Nigeria are used to dealing with cash rather than banking, which forces many of them to move around with a large amount of cash that needs to be deposited. before the expiration of the CBN date.

He said, “In Yobe, only four out of 17 local government areas have banks and many of our people are either farmers or herders who believe in holding cash rather than banking.

“It is high time to expand your branches to all local government headquarters, but in the meantime you need to find a way to make our people understand the policy as well as how to deposit their money easily without unnecessary challenges.”

Buni congratulated the bank for the donation saying, “I would like to reiterate that with the support of development partners such as the EU and other financial institutions, we are committed to working collectively as a team to plan, formulate and implement policies and programs that will have a positive impact. on the lives of our people.

FIRS appoints MTN, Airtel, commercial banks VAT collectors – Businessamlive Mon, 07 Nov 2022 15:33:45 +0000

By Chisom Nwatu

Telecom giants, MTN and Airtel, and commercial/depository banks in Nigeria have been appointed by the Federal Inland Revenue Service (FIRS) to withhold Value Added Tax (VAT) charged on all taxable supplies which are made to them, and hand them over. at the agency.

The FIRS made this known in a statement issued by Johannes Oluwatobi Wojuola, special assistant for media and communication to the executive president of the agency.

Similarly, a public notice issued on November 7, 2022 and signed by Muhammad Nami, executive chairman of the service, said the new order will come into effect on January 1, 2023.

The notice explained the role of businesses as well as the obligations of their suppliers with regard to the collection of VAT.

“This Notice is addressed to all persons carrying out a commercial, professional or commercial activity of any kind whatsoever, tax professionals and the general public who, as of January 1, 2023; pursuant to the provisions of Section 14(3) of the Value Added Tax Act Cap. V1 LFN 2004 (as amended), the following companies are appointed to withhold or collect VAT charged on all taxable deliveries made to them: MTN; Airtel; and all money depository banks, as defined by CBN guidelines,” Nami said in the notice.

Speaking on the remittance, the head of the FIRS noted that such companies should remit the tax they would withhold no later than the 21st day of the month immediately following the month in which the tax was withheld, in the format prescribed by the Service. .

“Tax withheld or collected under this notice will be paid in the format prescribed by the Service but separately from the VAT due on taxable business supplies,” it said.

Regarding VAT recovery, Nami explained the options available to suppliers of these companies whose output tax is withheld.

“A supplier whose output tax is withheld, as provided in this notice, may deduct input tax paid on goods purchased or imported to make the taxable supply from output tax collected on other taxable supplies,” a declared the boss of the FIRS.

“And where the input tax paid to make the supply is not fully recovered from the output tax on other taxable supplies, the balance is refundable to the supplier; provided that a supplier who is entitled to a refund can use the refundable amount to offset the future VAT liability or request a cash payment,” he explained.

In addition, the notice states that the Service has adequate measures in place to ensure prompt payment of refundable input tax under this arrangement, while indicating that input tax claims, which include refunds, are subject to the limitations imposed by Section 17(2)(a) of the VAT Act.

VAT is a consumption tax on goods and services that is levied at each stage of the supply chain where value is added, from initial production to point of sale.

JUST IN: Fintechs May Crash Commercial Banks – CBN Sounds the Alarm Wed, 02 Nov 2022 22:12:38 +0000
Central Bank of Nigeria

The Central Bank of Nigeria (CBN) has sounded the alarm that financial technology initiatives or companies commonly known as FinTechs will soon start outperforming traditional banks and could lead to the bankruptcy of the latter.

CBN Governor Godwin Emefiele sounded the alarm on Wednesday in Abuja during the 28th Annual Internal Executive Seminar on “Digitalization of Currency and Monetary Policy in Nigeria”.

Represented by the Deputy Governor for Financial Systems Stability, Ms. Aishah N. Ahmad, Emefiele in her remarks noted that there is “the concern that FinTech will compete with traditional banks, with an associated profitability risk” .

FinTechs are organizations that use technology to support or enable banking and financial services.

Some of the famous FinTechs in Nigeria include Paga, Interswitch, Flutterwave, Kuda Bank among many others.

Emefiele warned that FinTechs are likely to eclipse traditional banks as they erode their current trend of profitability.

He also noted that “with increased technological absorption and financial digitization, the risk of data and privacy theft, cybercrime and fraud increases.”

The Governor of the CBN therefore advocates “not only to expand the infrastructure of the payment system, but also to update the instruments of supervision”.

Speaking on financial inclusion, Emefiele said there have been huge gains in boosting financial inclusion in Nigeria, but he fears the 64% inclusion rate will slow down “the wheel of digital transformation, as all citizens must be trained to maximize the gains of a digital economy.

According to him, “while cash transactions have declined significantly over the past decade, it is still the dominant means of payment, within a large informal sector. Certainly, Nigeria boasts of one of the fastest growing FinTech ecosystems in Africa.

He went on to state that, “with the industry projected to grow 12% annually (McKinsey & Company, 2022), the tech space is still maturing, with market size, funding and investors limited venture capital, access to basic technologies and skills”. , as common characteristics.

Emefiele noted that despite the significant progress “recorded in the use and diffusion of digital payment infrastructure, especially in economic cities, the current rate of financial inclusion suggests that more work is needed”.

“The high cost of telecommunications infrastructure, including internet and electricity, in remote, urban and low-economic areas continues to deter investment in these areas, where low incomes and financial illiteracy already hamper the social and economic progress”.

He then called for deepening the financial system through broader coverage.

Despite these challenges, the CBN Governor said opportunities still exist “for the expansion of new business models, with added benefits, greater efficiency and customer satisfaction. Banks can drive value propositions for the growth of local innovators by providing venture capital, while focusing on other things.”

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The safest commercial banks in the world 2022 Wed, 02 Nov 2022 19:05:39 +0000

The success of this year’s 50 safest commercial banks is based on diversified businesses and newly imagined products.

The resilience of the institutions represented in this year’s ranking of the safest commercial banks will again be tested as the global economic outlook deteriorates. These commercial banks derive considerable stability from their diversified business models which include wealth and investment management, capital markets, trust and custodial services, but do not enjoy state support.

Many institutions emerged from the peak of the pandemic with refocused business models to provide improved products and services to their retail and corporate customers, and bank performance recovered as lending increased and profitability improved. . This progress faces a potentially rapid reversal given aggressive central bank rate hikes to fight inflation that will dampen global growth for the remainder of 2022 and into next year. As interest rates have risen, these commercial banks have benefited from increased net interest margins as variable rate loans are repriced and new loans are taken out at higher rates. While margins are expected to remain elevated through 2023, given the frequency and depth of restrictive monetary policy by global central banks, this advantage is likely to be offset by declining loan portfolios and rising credit costs as global economies contract.

This year’s ranking of the safest commercial banks includes some notable changes. Royal Bank of Canada rose to the top after an upgrade brought the giant bank’s score on par with smaller institutions. In its rationale for the January upgrade, Moody’s cited the bank’s robust and stable profitability, its diversified business model with dominant market shares in Canada, as well as a growing presence in the United States thanks to its City National Bank franchise. Canadian banks are consistently well represented in our annual rankings and RBC has held the top spot in three of the past four years, while three Canadian banks have made the top 10.

Two German entities fell in our ranking, with Moody’s downgrading DZ Bank (down four places to No. 11) and Deutsche Apotheker-und Aerztebank (down 10 places to No. 18) due to lower cushions. absorption of losses. As a result, the banks that complete our top 20 have moved up one or two positions.

Sweden returns three entities with Svenska Handelsbanken at No 4 while SEB fell 10 places to No 25 after the government eased regulatory requirements. On the other hand, Swedbank moved up six positions, to 26th place, with Fitch acknowledging the bank’s progress in strengthening anti-money laundering risk controls with an upgrade.

Australia’s four largest banks retained their positions based on rating stability, but Suncorp-Metway dropped out of our rankings as Fitch downgraded the bank’s rating following its planned sale to ANZ Group. The National Bank of Kuwait also dropped following Fitch’s downgrade following the downgrade of Kuwait’s sovereign rating in January. These actions helped Bank of China (Hong Kong) and NongHyup of South Korea enter this year’s rankings at 39th and 49th, respectively.

Methodology: Behind the rankings

According to the World’s Safest Banks ranking methodology, commercial banks that are majority state-owned or sponsored by their governments or regional bodies are excluded. Institutions here can operate in the same markets as state-sponsored competitors, but do not enjoy government support. In addition, institutions 100% owned by their parent company are not eligible under our criteria.

Commercial banks are letting their elderly customers down, foundation warns Wed, 02 Nov 2022 10:15:00 +0000

Commercial banks are failing older customers with their shift to technology-driven services, a community NGO has warned, as growing numbers of older people are becoming essentially unbanked.

The St Jean Antide Foundation on Wednesday listed a number of issues older people face when trying to access modern banking services – from reliance on ATM withdrawals to extremely long queues at bank branches physical.

“Many seniors choose not to deposit money in the bank,” the foundation said. “And when we finally convinced them to do so, they face even more problems because the banks demand proof of where the money they have saved for a long time comes from.

Local commercial banks have gradually reduced their physical presence on high streets in recent years, closure of several branches or opt not reopening branches which were closed during the COVID-19 pandemic.

Instead, banks require customers to withdraw and deposit money through their ATM network and encourage them to use online banking for other services. But that leaves seniors in the dark, says the St Jean Antide Foundation.

Many older people don’t know how to use computers or smartphones and don’t trust online services like mobile banking.

“Even when we try to teach them, it annoys them,” the NGO said.

Excessively long queues at physical bank branches mean that many older people find themselves waiting for long periods on the sidewalks outside branches.

And even when they try to call their bank for help, they’re baffled by recorded automated messages that force them to press endless buttons to get served. Many end up confused and unsure which button to press, and end up with the phone call hangs up.

Many seniors don’t want to apply for a debit card to use at ATMs, while others are just too frail or sick to go to ATMs and end up giving their bank card and PIN to someone else with instructions for withdrawing money for them, the Foundation added.

“Banks must recognize that the technological systems they have created lead to the financial exploitation of vulnerable older people,” he said. “We see the problem getting worse. Something needs to be done about this soon.

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1.7 trillion shillings loan from commercial banks not a silver bullet – government Mon, 31 Oct 2022 22:02:46 +0000

The FThe Ministry of Finance has said that a loan proposal request for 455.03 million euros (about 1.7 trillion shillings) which was recently presented to Parliament is not “a quick fix”.

The ministry said in a tweet on Monday that this money to be borrowed from Standard Chartered Bank and other commercial banks is part of the scheduled budget funding for this financial year 2022/23 already approved by Cabinet and Parliament.

Out of the budget of 48.1 trillion shillings for this financial year 2022/2023, the government released 10.25 trillion shillings in the first quarter and 7.3 trillion shillings in the second quarter.

In the first quarter, only 10.25 trillion shillings were released out of the 14.57 trillion shillings expected on the grounds that the government was controlling inflation.

Request permission to borrow

Finance Minister Matia Kasaija has written to parliament asking for urgent permission to allow the ministry to borrow up to 1.7 trillion shillings from these banks to fund part of the development and infrastructure budget for this exercise.

New Vision has seen a copy of an opinion from the Clerk of Parliament, summoning the members of the National Economy Committee for an urgent meeting tomorrow, November 1, 2022.

“Notice is hereby given that the National Economy Committee will have a meeting with the Ministry of Finance to consider an urgent mission to review the government’s request to borrow up to 455 million euros from the Standard Chartered Bank and other financial institutions and to report to the House on Wednesday, November 2, 2022,” reads a notice to members, signed by committee clerk Glorious Kamayangi, on behalf of the Clerk of Parliament.

Last month, the opposition in parliament demanded that the Ministry of Finance explain why it had delayed the payment of its exceptional advance of 11 trillion shillings borrowed from the Bank of Uganda (BOU).

In a statement presented to Parliament, Shadow Finance Minister Muwanga Kivumbi said that although the Public Finance Management Act requires the government to pay its debts to the BOU within the borrowing year, the ministry hasn’t done it yet.

“This conflicts with the mandate of the BOU as provided for in the Bank of Uganda Act,” Kivumbi noted.

Commercial bank deposits rise 1.8% to QR 973 billion in August Fri, 21 Oct 2022 06:18:00 +0000 Stock photo used for representational purposes only. Photo by Abdul Basit/ The Peninsula

The banking sector in Qatar showed resilience and recorded growth in August. Commercial banks in Qatar saw an increase in deposits and credit facilities year-on-year in August 2022 according to data from the Planning and Statistics Authority.

Public sector deposits stood at QR 328.98 billion in commercial banks in August 2022, compared to their counterpart in the previous year (August 2021), amounting to QR 281.18 billion, showing an annual growth of 17% and an increase of 3.7% on a monthly basis. On the other hand, private sector deposits last year for the same period amounted to QR 434.6 billion, registering an increase of 9.6% on an annual basis.

Deposits of non-residents in commercial banks in August this year amounted to QR 209.56 billion. Total commercial bank deposits in August 2022 stood at QR 973.15 billion, compared to QR 955.66 billion, registering an increase of 1.8% YoY and 0.9% YoY.

According to official data, credit facilities of commercial banks in Qatar in the public sector in August 2022 reached QR 362.59 billion, reaching a monthly growth of 1.7%. While private sector credit facilities in the same month stood at QR 791.09 billion, registering an increase of 6.6% and 0.3% on an annual and monthly basis respectively.

In the case of non-resident credit facilities, commercial banks recorded a decline of 8.2% and 1.4% in August 2022 on an annual and monthly basis. The total commercial bank credit in the country stood at QR 1.218 billion as of August 2022.

Money supply1 (M1) stood at QR 157.91 billion in August 2022, showing an annual increase of 2.6% and a monthly decrease of 1.8%.

While money supply2 (M2) recorded around QR 678.18 billion in August 2022, compared to QR 603.41 billion in the same period of 2021, an annual and monthly increase of 12.4% and 0.4 %. The money supply3 (M3) stood at QR 779.36 billion, registering a growth of 12.8% and 1.7% on an annual and monthly basis.