CBN Clamp-Down on Bad Debtors

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Ibrahim

DEBTORS of non-performing loans of a maximum of N250million in closed banks are banned from accessing new facilities in any deposit money bank in the country. This is the new directive issued by the Central Bank of Nigeria, CBN, following a request made to it by the Nigeria Deposit Insurance Corporation, NDIC. Umaru Ibrahim, managing director of NDIC, said banks had been notified of the development and that NDIC examiners would follow up to ensure strict compliance.

He said, “In view of this challenge being faced by the corporation, I am happy to inform you that following our request, the CBN has barred all debtors of closed banks with non-performing loans of a maximum of N250millon from access to new facilities in any deposit money banks. The banks have been notified of this development and I, therefore, wish to rely on NDIC examiners to ensure compliance with this new directive. The names of the debtors will be poblished through the CBN’s Credit Risk Management System and approved private sector credit bureaus.”

According to the NDIC boss, the rapidly changing operating environment and the complex future of banking had necessitated this year’s conference. He said the NDIC has the task of securing depositors’ money in addition to ensuring the safety and soundness of the financial system. The Bank Examiners conference with the theme, ‘Sustaining a Safe and Sound Financial System through Effective Banking Supervision,’ Ibrahim said, would afford the corporation’s old and new staff members the opportunity to acquire new skills to discharge their demanding tasks, owing to the nature of the challenges in the banking sector.

He said, “I consider the theme of this year’s conference apt given the centrality of banking supervision in ensuring the safety and soundness of the financial system. Beside depositors’ guarantee, the corporation is actively engaged in bank supervision, distress resolution and liquidation.” Ibrahim added that he was hopeful that the conference would impact positively on the “on-site and off-site examiners,” who are daily confronted with the challenge of delivering on the corporation’s mandate of banking supervision using best practices.

Fidelity Bank’s Expansion Drive

Okonkwo
Okonkwo

FIDELITY Bank Plc is set to establish 26 new branches across the country. The business plan has received the nod of the Central Bank of Nigeria,CBN. Nnamdi Okonkwo, managing director, said the bank had established 13 new branches during the 2013 financial year to take its services closer to its customers.

“We also received the approval to establish 26 additional new branches from the CBN, which will be fully implemented before the end of 2014 at targeted locations. During the year, 13 new branches were added to our physical distribution channels, which provide our valued customers with improved convenience for their business transactions,” he said.

Okonkwo stated that the bank’s audited results for the financial year which ended on December 31, 2013, showed a profit before tax of N9.03billion; while gross earnings increased by 6.5 percent to N126.92billion as against N119.14billion recorded in 2012. He explained that the bank’s total assets went up by 18.2 percent to N1.081trillion in the year under review, from N914.36billion in 2012.

He noted that the total customer deposits increased by 12.5 percent from N716.75billion in 2012 to N806.32billion in 2013, adding that the bank’s net loans and advances grew by 23.3 percent to N426.08billion in 2013 from N345.50billion a year earlier. According to him, the bank’s shareholders had unanimously approved 14 kobo per ordinary share of 50 kobo as dividend payable to those whose names appeared on the bank’s register at the close of business on April 12, 2014 as earlier proposed by the directors for the financial year which ended on December 31, 2013.

FCMB Extends Promo

Akanmu
Akanmu

FIRST City Monument Bank has extended its 30th anniversary promo to reward more of its customers within and outside the country by five months. The programme, which was slated to end in April, has been extended to September 2014. In a statement, the bank said  the promo was targeted at all segments of the society across all age groups.

Olu Akanmu, senior vice president/divisional head, retail banking, said that the extension of the promo was in response to the request of the bank’s customers who were excited about the success and rewards they received during the first phase of the exercise. He said: “Our customers are the reason why FCMB exists and as a bank that is committed to continually satisfy their needs, this promo is to further show appreciation to existing and potential ones by expanding the reward opportunities that the promo offers them.”

Compiled by Chinwe Okafor 

— May 19, 2014 @ 01:00 GMT

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