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CBN To Introduce Tougher Capital Requirements For Banks

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6 years ago

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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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Access Bank to Host Pioneering Africa Trade Conference in Cape Town

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6 days ago

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January 29, 2025

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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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6 days ago

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January 29, 2025

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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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Access Bank Clinches THISDAY’s ‘Global Bank of the Year’ Award, Aig-Imoukhuede is Named ‘Titan of the Year’

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6 days ago

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January 28, 2025

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Access Bank Clinches THISDAY’s ‘Global Bank of the Year’ Award, Aig-Imoukhuede is Named ‘Titan of the Year’

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

Access Bank PLC (‘the Bank’), the flagship subsidiary of Access Holdings PLC (‘the Company’), has been honoured with the prestigious THISDAY Global Bank of the Year award for 2024, recognising its significant impact on the global banking landscape.

R-L: Roosevelt Ogbonna, Group Managing Director, Access Bank PLC; Tochi Wigwe, Daughter of Herbert Wigwe, former Group CEO, Access Holdings; Maame Saarah Buckman; Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC; Aigbovbioise Aig-Imoukhuede, Managing Director, Coronation Asset Management Limited, and Funke Aigbovbioise Aig-Imoukhuede,  at the THISDAY Awards 2025 where Access Bank won Global Bank of the Year award and Aig-Imoukhuede was named Titan of the Year, in Lagos… Monday night

In addition, Aigboje Aig-Imoukhuede, Chairman of Access Holdings, received the distinguished THISDAY Titan of the Year award for his exceptional contributions to the banking sector in 2024.

At THISDAY Awards 2025, Access Bank emerged victorious, surpassing African Export-Import (AFREXIM) Bank and United Bank for Africa (UBA) to claim the coveted title. The prestigious award ceremony, held at Eko Hotels & Suites in Victoria Island, Lagos, marked the 30th anniversary of THISDAY Newspapers and the 12th anniversary of Arise News Channel, with the theme, “When the Going Gets Tough… The Tough Get Rewarded.”

THISDAY Newspapers highlighted Access Bank’s nomination, praising its strategic leadership, rapid expansion, and unwavering commitment to innovation and sustainability. The bank’s leadership in digital banking was also recognised, with Access Bank receiving multiple accolades, including the 2024 Digital Jurist Award for Best Digital Bank.

In addition to its achievements in digital banking, Access Bank has demonstrated a strong commitment to environmental, social, and governance (ESG) principles, earning the 2024 Euromoney Award for Best Bank for ESG in Nigeria and Ghana.
With an expanding international presence in the United Kingdom, Ghana, United Arabs Emirates, China, and several African nations, Access Bank continues to solidify its position as a major global banking player.

Lagos State Governor, Babajide Sanwo-Olu (left) and Aigboje Aig-Imoukhuede, Chairman, Access Holdings PLC, exchanging pleasantries at the THISDAY Awards 2025 where Access Bank won Global Bank of the Year award and Aig-Imoukhuede was named Titan of the Year, in Lagos… Monday night

The bank’s innovative approach is further evidenced by its cutting-edge technological initiatives, including Facepay, Access Closa, the AccessMore mobile app, and Africa Fintech Foundry—further establishing Access Bank as a leader in technological advancements, and underscoring its deserving recognition as Global Bank of the Year.

During his acceptance speech, Access Bank’s Managing Director and CEO, Roosevelt Ogbonna, expressed his gratitude to the public, THISDAY Newspapers, and Arise Media Group for the recognition. He remarked, “This award represents 30 years of hard work of doing things differently, and of building on the legacy of industry giants like Aigboje Aig-Imoukhuede and Herbert Wigwe. We are deeply grateful to our board, management, customers, and stakeholders, who have continuously supported us. This award is for you, and we accept it in your honour.”

In a similar vein, Aigboje Aig-Imoukhuede, along with 11 other influential leaders, was recognised with the THISDAY Titan of the Year award for 2024. Reflecting on his journey, Aig-Imoukhuede shared, “In 1991, Prince Obaigbena and I first met as customer and banker. He told me that anyone fortunate enough to manage his account would one day become a managing director of a bank, and I am thankful that God fulfilled that vision. It is an incredible honour to stand with such esteemed colleagues.”

The star-studded event, which brought together dignitaries from both the private and public sectors, celebrated excellence, innovation, and leadership across industries and the political landscape.

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