Banking Briefs
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THE Nigeria Deposit Insurance Corporation, NDIC, has mapped out plans to increase the deposit insurance coverage for customers of Primary Mortgage Banks, PMBs, operating in the country. Umaru Ibrahim, managing director, NDIC, on Monday, September 29, in Abuja, stated this in a keynote address at a sensitisation workshop for operators of the PMBs.
The workshop with theme: “Developing and Implementing Sustainable Effective Risk Management in PMBs in Nigeria’’, was organised by the NDIC to promote safe and sound banking practices. The NDIC, as an insurer, reimburses depositors of all PMBs up to a maximum limit of N200,000 per depositor in the event of failure of a mortgage institution. The N200,000 per depositor, which took effect in 2010, represents an increase of 100 per cent over the earlier N100,000, when the insurance package was first extended to the sector in 2006.
But Umar said since the PMBs seemed to carry more risks and pay more insurance premium than microfinance banks, there was a need to increase the corporation’s coverage from the current N200,000 per depositor. He, however, failed to provide the amount for the new deposit insurance cover being planned by the corporation.
“Going forward, we are going to review the insurance coverage for the PMBs which is currently N200,000, and we are thinking why not segregate that sector from what obtains in microfinance banks, given the huge risks that you carry and the quantum of premium that you pay. We are also considering reviewing the flat rate and introducing the risk-based premium, which is the case in the banking industry with deposit money banks. That way, you will be able to promote safer and best practices,” he said.
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First Bank to Fund Kaztec’s Fabrication Project
THE First Bank Plc has expressed its willingness to provide funding for the $1.3billion fabrication contract being implemented by the Kaztec Engineering, a subsidiary of the Chrome Group. The contract, which was awarded by Addax Petroleum and scheduled to commence in October, is tied to the Addax’ Ofrima/Udele development project.
The First Bank’s interest was fuelled after the visit of Olabisi Onasanya, its managing director, to Kaztec’s Fabrication Yard in the Snake Island in Lagos, to inspect the level of work on current projects. Onasanya expressed satisfaction with fabrication work for Addax’ Antan Development project valued at $136 million, which is also being partly funded by the bank.
Also, Bashirat Odunewu, group executive director, Institutional Banking, First Bank, said the visit was impressive because Kaztec is a 100 percent Nigerian company. “They made presentation to us, and we had a walk round the facility. I must say that all the things we saw were very encouraging that a Nigerian company can do such good technical work. They showed us what they were doing presently and even those that have been concluded; these are works that were normally given to foreign companies to do. Also, their client, Addax Petroleum, was satisfied with what they are doing,” she said.
Odunewu said the bank wanted to support Kaztec, based on what the team saw on ground. “It’s a project, which is being done in phases. It’s a multi-billion dollar project, and there is a ratio that they have to bring in and some that we will fund. Sometimes, we invite some of our colleagues if we need to do syndication. Sometimes, we do it on our own. You know that for the banks, there is a certain limit set by the regulators and you cannot go beyond that for any particular customer; and we have a good appetite.”
According to her, the reason some Nigerian companies cannot access bank facilities is because of their lack of commitment to the project for which they seek the facilities. “Nigerian companies need to know that first; they have to be competent, and be able to prove to the bank that they have already invested some of their own equity into the project. In the banking industry, we have what we call bankable projects, so if someone wakes up today to say, I want to do a yard like what Kaztec has in the Snake Island,’ and tells the bank to finance it. The idea is that when you start, you have to show that you can manage funds on your own, and when the banks see what you are doing and where you are going, then they will work along with you. But a lot of people don’t want to do anything on their own first; they want the banks to finance everything. But you must show your own commitment before the banks can come in to assist you,” she said.
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Keystone Bank Inaugurates ATM for Physically Challenged Persons
THE physically challenged persons who have problems using automated teller machine, ATM, can now heave a sigh of relief. Keystone Bank Limited as part of its efforts to support Nigeria’s drive for financial inclusion, on Tuesday, September 30, inaugurated an ATM gallery that was built to accommodate physically challenged persons in the society. Yvonne Isichei, executive director, Operations and Technology of the bank, said the bank decided to locate the ATM gallery at its Maryland branch, because it is a very busy metropolitan area.
According to Isichei, the bank decided to introduce the ATM gallery as part of its corporate social responsibility, which she said, is all about touching the lives of people and to demonstrate its commitment to financial inclusion as a developmental goal as well as align with the goal of sustainable banking, which is all about being conscious of the needs of those around its environment.
“Some bank customers experience some difficulties using the ATMs especially the physically challenged. We want to make financial services accessible. Financial inclusion is about encouraging everybody, taking it near the people as possible. It is about our channels and their workability. It is supposed to make life easier,” she said.
Isichei noted that the level of financial inclusion has continued to grow, even as she expressed optimism that the 2020 target of achieving significant improvement in the level of financial inclusion would be met with structures such as the bank’s ATM gallery for the physically challenged. “We are happy to know that there has been an appreciable progress, but we still have a long way from achieving a 70 percent financial inclusion which is the objective of vision 2020. Keystone bank looked at these and so we are really happy that we recognise this need and in recognising it, we have provided a solution and that is why we are gathered today.”
Obioha Ononogbu, chairman, Spinal Cord Injuries Association of Nigeria, who was at the event, urged other banks to emulate Keystone Bank. “The world is for everybody, you don’t have to exclude some people. The disabled should also have the opportunity to benefit from banking facilities. The most important aspect is that it is made accessible for people on wheel-chair. I think that is the highlight of this system. This is a very good one for us that are on wheel chairs, so that we can have access and do it ourselves and not depending on anyone,” he said.
— Oct. 13, 2014 @ 01:00 GMT
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