Economy
A financial analyst, Dr Samuel Nzekwe, has called on Deposit Money Banks to further recapitalise, to meet the current rising inflation challenges in the country.
Nzekwe, who is a former President, Association of National Accountants of Nigeria (ANAN), made the call while speaking with the News Agency of Nigeria (NAN) on Monday in Ota, Ogun.
According to him, the current economic situations called for commercial banks to recapitalise as Naira continue falling against the dollars.
He said that the rising country’s inflation rate had eroded the capital base of most banks, thus affecting them from playing their roles as financial intermediaries.
Nzekwe noted that most banks in the country lacked the financial strengths to grant long term loans to investors as gestations of businesses took between five to 10 years before starting making profits.
“There is no bank that offers or grants long-term loans to investors because of their financial capabilities.
“And majority of their profits come from other areas like investment in real estate and importation, rather than lending which is their core functions,” he said.
The former ANAN president stressed the need for banks to also review their interest rate charging on loans, to attract more borrowers to the financial sector.
Nzekwe urged the Central Bank of Nigeria (CBN) to work in collaboration with the banks to tackle financial frauds in the banking system.(NAN)
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– Aug. 14, 2023 @ 10:07 GMT |
Tags: Association of National Accountants of Nigeria Central Bank of Nigeria DR Samuel Nzekwe
