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CBN To Introduce Tougher Capital Requirements For Banks

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The Central Bank of Nigeria (CBN) said it  will introduce new  capital requirements for banks  in the second quarter of 2019, a move that threatens to heap pressure on lenders already weighed down by bad loans. Mr Godwin Emefiele answering questions during his screening by the Senate for Central Bank Governorship in Abuja on Wednesday The apex bank told Bloomberg, yesterday, that the new requirements will be stricter in terms of what funding qualifies as capital and will also require lenders to create “capital conservation” and “counter-cyclical” buffers. According to CBN, the rule seeks to protect the nation’s banks “against shocks emanating locally and from abroad” by increasing the level of regulatory capital and the quality of the assets. With the introduction of the new rule, the regulator seems to be aligning itself with a global accord known as Basel III, three years after a contraction in Nigeria’s economy spurred delay of implementation of tougher capital rules. It also comes after policy makers in 2013 spurned some requirements drawn up by the Basel Committee on Banking Supervision. Last year, banks were compelled to migrate to a new accounting standard known as IFRS 9 to improve disclosure by forcing lenders to provide for existing losses as well as those that might occur in the future. While the average capital-adequacy ratio for the industry rose to 12.1 percent in June from 10.2 percent at the end of 2017, some banks said the transition shaved as much as 200 basis points off their capital bases. Nigerian banks are struggling to contend with non-performing loans equal to 12.5 percent of total credit. While these have improved from almost 15 percent in 2017, many small- to medium-sized banks are battling to raise capital, leading to a takeover deal of Diamond Bank Plc by Access Bank Plc. CBN said it plans to “apply a leverage ratio to supplement existing capital ratios” for lenders as well as “additional loss-absorbency requirements for domestic-systemically important banks”. The apex bank further stated: “Country and cross-border risk guidelines are being developed for the assessment of risks arising from across border operations of Nigerian banks.” Return unfit notes to CBN branches In another development, the CBN  said that members of the public should return unfit naira notes to banks or any of its branches for fit notes. It however warned the nation’s banks against recirculation of unfit bank notes, saying that it would impose penalties on any bank that re-circulates unfit bank notes. The CBN disclosed this in the Banknotes guidelines issued yesterday alongside Clean Notes Policy. The documents were signed by Deputy Governor Operations, CBN, Folashodun Shonubi and Director Currency Operations Department Mrs. Priscilla E. Eleje. Among other things, the guidelines describe fit and unfit bank notes as well as stipulate Quality Standard for Nigerian bank notes. The guidelines stated: “A banknote that is suitable for continued circulation and is sufficiently clean to allow its authenticity and value to be readily ascertained. “A banknote that is unsuitable for further circulation because of its physical condition, which may be soiled, dirty, limp, worn out, defaced or has a hole that is larger than 10 mm. Unfit notes should be returned to DMBs or a branch of the CBN anywhere in Nigeria for exchange.” Explaining the purpose of the guidelines, the CBN stated: “These guidelines provide the general public with clear, acceptable criteria and standards for determining the quality of banknotes in circulation. “Fitness standards are developed for all denominations of the banknote. These standards establish the desired fitness criteria and parameters for the Banknotes which provide a benchmark and reference for evaluating banknotes in circulation. The fitness criteria include:  The durability and functionality of security features on the notes; Banknotes structure and durability; and Banknote quality i.e. printing and appearance of the banknotes (soiling/ink wear) etc.” The guidelines spell out the criteria for re-circulating a bank note, saying, “A banknote is considered fit for recirculation if it meets the following criteria:-Genuine, not counterfeited; Has a defined and acceptable area dimension; Free from holes, tear, tape or missing part, folded portion, etc;  Has uniform brightness and is not heavily soiled;  Free from excessive ink wear, particularly in the portrait area; Free from defacing;  Correct denomination, serial number details, etc; The series that has been approved for redistribution by the Bank. If one or more of these criteria are not met, a note can be classified as unfit and unsuitable for recirculation.” “To ensure that the banknotes in circulation are clean and of good quality, DMBs shall ensure that they process their banknotes using registered processing companies and classify them into fit and unfit. “Any counterfeit notes discovered are to be returned to CBN. Only the banknotes which have been authenticated (i.e. verified for counterfeit and free from unfit notes according to CBN standard) will be issued over the counter by banks or through their cash dispensing machines. “Unfit banknotes shall not be re-circulated by DMBs and CPCs. However, a penal charge of N12,000 per box, or any amount determined by the Management of the Bank, shall apply for the deposit of unsorted banknotes.  In addition, penalties as may be determined by the Bank, shall apply for the re-circulation of unfit banknotes.  “There are machines that accept, count or sort banknotes automatically into fit, unfit, suspect or counterfeit. Only cash processing machines which have been duly configured, and approved by the Bank shall be used by CPCs. The following categories of machines must meet specified standards set by the Bank and be adaptable to the features of the existing banknotes and the basic parameters set by the CBN from time to time. The Bank shall ensure conformity to these standards: Desktop sorting machines with authentication sensors; Banknote validators; Medium speed note sorters; High speed sorters; Automated Teller Machines (ATMs). The processing equipment would be adapted and confirmed by CBN to ensure uniformity and consistency with defined parameters. “The Bank shall ensure that the Automated Teller Machines (ATMs) deployed by DMBs and other service providers are configured to dispense and accept only genuine banknotes in all denominations. “The ATMs shall dispense notes that have been duly checked for authenticity and fitness according to the Bank’s standard and operators whose ATMs contravene this provision shall be sanctioned according to section 20 of the CBN Act. Similarly, DMBs and service providers whose ATMs receive or dispense counterfeits or materials other than naira banknotes shall be liable according to section 20(4) of CBN Act 2007.” On steps to be taken by stakeholders in the currency management system to ensure that notes in circulation are of acceptable quality and standard, the CBN said: “The quality of banknotes must be checked in the course of withdrawal by all the major cash handlers. “The DMBs and third party service providers are advised to adhere strictly to the provisions of the Guidelines as any violation would attract appropriate sanctions. “Fit banknotes should be re-circulated to the public, while unfit banknotes are to be returned to CBN for authentication and disposal. All banknote processing machine parameters must be configured in line with the quality criteria set by the Bank to ensure consistent quality output.

 

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Fidelity Bank Supports Modupe Cole Memorial School, Lagos

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Fidelity Bank Supports Modupe Cole Memorial School, Lagos

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

In continuation of its drive to alleviate the impact of economic hardship and suffering among indigent Nigerians, Fidelity Bank Plc recently donated food items to Modupe Cole Memorial Childcare and Treatment Home School in Akoka, Lagos.

CAPTION:

L- R. Tolulope Rojaiye, Team Member, Brand and Communications, Fidelity Bank Plc; Osho Olufunmilayo Bamidele, Vice Principal 2, Modupe Cole Memorial Childcare and Treatment Home School; and Victoria Mbonu, Class President, Intellect Nexus Inductee Class, Fidelity Bank Plc; during a Corporate Social Responsibility (CSR) donation event executed by Fidelity Bank at Modupe Cole Memorial Childcare and Treatment Home School, Akoka, Lagos recently.

The donation which aligns with the Bank’s Corporate Social Responsibility (CSR) pillars of education and health, was championed by the Intellect Nexus Class of 2024 under the Fidelity Helping Hands Program (FHHP). Through this initiative, Fidelity Bank staff identify community needs, raise funds to address them, and receive matching support from the bank to implement impactful projects.

Explaining the bank’s commitment to supporting its host communities, the Divisional Head, Brand and Communications Division, Fidelity Bank Plc, Dr. Meksley Nwagboh, noted that, “At Fidelity Bank, we recognise the symbiotic relationship we have with the communities where we operate. This informs our decision to not only provide our host communities with relevant financial services but to also impact them with developmental projects.

“We are inspired by the great work being done here at Modupe Cole Home School and our donation is a small token of appreciation for this as we aim to support the well-being of these exceptional children.”

On his part, the Vice Principal of the school, Mr. Isiaka Ajani, expressed gratitude for the bank’s consistent support noting that Fidelity Bank’s gesture is a huge encouragement to the school.
“We say thank you for the gift items that you have brought to us today, and this shows that we are not alone in the mission to provide care and education to children with special needs.

“This institution is a testament to the belief that there is ability in disability. We have children here who have passed common entrance examinations and gained admission into higher institutions despite their challenges. It is our mission to help them achieve their potential.

“The school had made effort to provide academic and vocational training programs in bead-making and hairdressing, and specialized care for residents with severe disabilities for its 476 residents, many of whom have been abandoned by their families.” He stated.

Fidelity Bank is a full-fledged customer commercial bank with over 8.3 million customers serviced across its 255 business offices in Nigeria and the United Kingdom as well as on digital banking channels.

The bank has won multiple local and international awards including the Export Finance Bank of the Year at the 2023 BusinessDay Banks and Other Financial Institutions (BAFI) Awards, the Best Payment Solution Provider Nigeria 2023 and Best SME Bank Nigeria 2022 by the Global Banking and Finance Awards; Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence 2023; and Best Domestic Private Bank in Nigeria by the Euromoney Global Private Banking Awards 2023.

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Access Bank to Host Pioneering Africa Trade Conference in Cape Town

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Access Bank to Host Pioneering Africa Trade Conference in Cape Town

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank PLC is set to host its first-ever Africa Trade Conference (ATC), a landmark event focused on advancing Africa’s economic transformation under the theme, ‘Empowering Africa Through Trade, Innovation, and Sustainable Growth’. Scheduled for March 12, 2025, in Cape Town, South Africa, the conference is poised to bring together the most influential voices in trade, finance, and policy to address the future of commerce across the continent.

With Africa’s trade finance gap estimated at $81 billion annually, the conference aims to tackle the systemic challenges hindering trade, particularly for SMEs and domestic firms. By fostering collaboration among key stakeholders, the Conference will explore innovative solutions, sustainable trade practices, and strategies for expanding African economies into global value chains.

Roosevelt Ogbonna, Group Managing Director/Chief Executive Officer, Access Bank PLC, emphasised the importance of the Africa Trade Conference, in addressing these pressing issues. “The Africa Trade Conference represents a crucial step in redefining Africa’s trade potential. By creating platforms for dialogue, innovation, and actionable solutions, Access Bank is enabling African businesses to connect and thrive in the global economy.”

Access Bank’s presence across 24 countries globally, including 16 in Africa, provides a unique advantage in facilitating inter- and intra-African trade. The Bank’s growing network positions it as a key player in addressing trade complexities and promoting inclusive growth across the continent.

Seyi Kumapayi, Executive Director, African Subsidiaries, Access Bank, highlighted the broader vision of the forum, saying, “The Africa Trade Conference is a platform to not only address Africa’s trade challenges, but to champion the continent’s opportunities. Through strategic partnerships, tailored financial solutions, built on the ethos of sustainability, we are paving the way for Africa’s businesses to take their place on the global stage.”

This flagship event will convene a distinguished line-up of seasoned speakers, and top executives from leading international banks, Development Finance Institutions (DFIs), and captains of industry in Africa.

The ATC will also shine a spotlight on the transformative potential of the Africa Continental Free Trade Area (AfCFTA), which aims to reduce trade barriers, enhance infrastructure, and integrate African economies into global trade networks.

Furthermore, the event will explore critical themes shaping the continent’s economic future, including the transformative role of digitisation and innovation in global trade, solutions for overcoming trade barriers to enhance market access, as well as sustainable trade practices and innovative financing models, thereby providing a comprehensive roadmap for advancing Africa’s position in global commerce. Please visit https://africatradeconference.accessbankplc.com/ for more information.

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Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw

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Union Bank Rewards 360 Customers with N21 Million in First Save and Win Palli Promo 4 Draw

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Union Bank, Nigeria’s leading financial institution, has kicked off its Save and Win Palli Promo 4campaign on a high note following the announcement of its first set of winners in its inaugural monthly draws.

The first live draw of this season, which took place at the Bank’s Head Office in Marina, Lagos, rewarded 60 customers with ₦100,000 each. Additionally, 300 other winners went home with ₦50,000 worth of gift vouchers during the inaugural live draw, which was conducted transparently and digitally under the supervision of relevant regulatory bodies. The winners cut across the nation.

Speaking at the first monthly draw, Gloria Omereonye, Union Bank’s Area Business Executive for Lagos Island 1, stated, “Union Bank is always dedicated to rewarding customers for their loyalty and financial discipline.

We are pleased that our promo has continued to achieve its noble goals of providing succour to our customers through our gifts and rewards, especially in these economically trying times, while facilitating a sustainable savings culture for future goals and objectives.”

Save & Win Palli Promo is a nationwide campaign designed to reward both new and existing customers with cash prizes. Season 4, which began in December 2024 and runs until May 2025, offers customers the opportunity to win ₦131 million in cash prizes, Motorcycles, Tricycles, Fuel Vouchers, and a star prize of ₦5 million, which will be handed out to three lucky winners at the grand finale.

Open to new and existing customers, the Save and Win Palli Promo requires participants to save a minimum of ₦10,000 and perform a minimum of five transactions monthly to qualify for draws. Monthly winners can receive ₦100,000, while quarterly draws will reward lucky savers with Motorcycles, Tricycles, and other exciting prizes.

Customers who save in multiples of ₦10,000 will increase their chances of winning.

New customers can join the promo by downloading the UnionMobile app to open an account or visiting any Union Bank branch.

Existing customers can reactivate accounts by calling the 24-hour Contact Centre at 07007007000 or visiting a branch.

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