Banking and Finance

The Cost Of Banking Reforms In Nigeria

There has been a wave of banking sector restructuring and consolidation around the globe, predominantly in the developed and the emerging market economies.  This has been driven by globalisation, structural and technological challenges, as well as the integration of financial markets.  Banking sector reforms have become important as financial institutions struggle to become more competitive and elastic to shocks. It is also encouraged by the yearning to reposition corporate operations to manage the hitches of an increasingly international banking system.

Nigerian Economy And Full Employment

The Nigerian economy as it is today suffers widespread underutilisation of resources. A very large indigenous human resource base has remained largely disengaged from economic processes through unemployment. Likewise, there has been a flimsy and lopsided effort to exploit and convert the country’s vast natural resources into national income. It would not be out of reason therefore to say that the economy remains stuck in the doldrums. And in such an unhealthy economic state, any attempt toward full employment of resources would entail a frustrating uphill battle.

Africa’s Biggest Economies: How They Fared In 2012

With a population of approximately 1.07 billion, comprising 54 countries, which are richly endowed in mineral resources, Africa’s economic rhythm has quickened, vibrating with a new commercial enthusiasm. The rate of return on foreign investment is higher in Africa than in any other developing region, corroborating the fact that it is the fastest growing continent in the world. This is evident as seven of the world's 10 fastest-growing economies are in Africa. Telecommunications, banking, and retailing are flourishing. Construction is booming. Private investment inflows are on the rise.

Financial Reporting And Investors’ Confidence

Corporate financial reporting scandals have become a global phenomenon with every major country that qualifies as an economic powerhouse having her fair share.  Every time there is a major scandal, investor’s confidence is shaken to its foundation, and this could often lead to an economic meltdown if such scandal relates to a big player.

Harnessing The Full Potentials Of Trade Flow Along The West Coast

The benefits derivable from the existence of a large market in the West African sub-region remain a strong reason why there is need for the optimal utilisation of the full potentials of cross-border trading within the sub-region. The market in the sub-region is estimated at a population of 308.66 million out of Africa’s 1.04 billion, with a Gross Domestic Product (GDP) of $359.5 billion (2011).

Real Output And Aggregate Leverage –Optimal Levels For Emerging Economies

In a practical sense, governments borrow to grow their economies. Borrowing is synonymous with economic growth. Businesses use leverage to boost profits. And in the context of real output, countries leverage by borrowing money to maximise their gross domestic products (GDPs). Any country with a vibrant economy will borrow to sustain economic growth.

Currency Restructuring And Seigniorage –The Impact On The Economy

The Central Bank of Nigeria (CBN) recently announced its plan to embark on ‘Project Cure’, aimed at restructuring the nation’s currency.  Under the proposed currency structure, the lower bank notes of ₦5, ₦10 and ₦20 will be coined, while the existing denomination of ₦50, ₦100, ₦200, ₦500 and ₦1,000 will be redesigned with new security features. A new high currency denomination, the ₦5,000 note, will also be introduced.

Tax Issues And The Capital Market

The tax system in any country is a major link between the private and the public sector in growing and shaping the economy of that nation.  Taxation can be used to control the direction of a country’s economic strategy.

For example, in 2011, when the government of China wanted more activities in its capital market, it reduced the taxes and other transaction charges.  This led to increase in the volume and value of trades in the capital market, and it opened the doors for more foreign investors since it was relatively cheaper to do business in the China Capital Market.

CAT Financial and Stanbic IBTC launch partnership

(Photo: L-R: Trade Finance Manager, Mantrac Group, Ms. Neimat El Magraby; Head, Global Markets, Stanbic IBTC Bank, Mr. Sola Adegbesan and Managing Director, Mantrac Nigeria, Mr. Edmund Martin Lawson at a press conference to mark the formal launch of the collaboration between Stanbic IBTC Bank and CAT Financial Services on Tuesday, February 5, 2013.)

Caterpillar Financial Services Limited and Stanbic IBTC Bank officially launched their collaboration agreement in Lagos recently.