CBN Needs To Implement This Policy
CBN sacks First Bank board over “ bad credit decisions, significant and non-performing insider loans and poor corporate governance practices”. Ask the apex bank why it has been slow to adopt this simple proposal: serve in bank A Board, no loan for you from bank A.
This folks still don’t know the damage they are doing to the financial eco-system. In this present age-Digital era- when we are facing heavy disruption with massive pumps of funds, traditional banks keep playing with the only leverage vantage they have-Trust. First bank is a LEGACY INSTITUTION and her collapse would spell doom beyond our imagination.
We are crying for Financial Inclusion yet the people we are talking to are skeptical about the dealing, leadership of the system; one they have little say over if things go bad. I was seriously sick and had to go over to my aunt place, down from school become the treatment from school seemed ineffective. I noticed something, They don’t TRUST the bank, they hardly use it and they don’t CARE!
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If we don’t want to go back 50 years in financial service provision, undoing the little good things the young generation have done, killing investors confidence( We were crying that twitter did not setup here) then we need to handle this distress like SANE people and not….
Apart from the fact that this is a PERFECT organized crime, I don’t fault the regulatory body much only that moving forward we should implement as you have said the policy where you don’t serve on a board and take a loan even or shortly after, so that there is no sentimental based judgement in loan authorization. However, I am aware that there is a memo by the CBN that makes it hard for Insiders to take loans and when they take loan the dividend of their shares in the companies are not liquidated until the bad loans are cleared.
What is on ground is beyond sorry that is 1trillion gone, a considerable fraction of the total stock exchange and it has though we forget that Financial crisis start when banks fault on loans and come crying for bailout- which over time have proven to be ineffective and leads to a devaluation of currency. Owing a bank should not be an indirect license to print money.
In your words, One week One Problem. Anyways Godwin should be Nigeria Man of The Year- He is putting out SO many fires down here, indeed uneasy lies the head that wear the crown and ELEPHANTS SHOULD NOT BREAKDANCE.