Emefiele preaches economic patriotism at University of Benin

12 total views, no views today

The Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, has taken his message of economic patriotism to the University of Benin, where he urged actors in the public and private sectors to look inwards in developing the Nigerian economy.

Emefiele gave the charge while delivering the third in the university’s series of Eminent Persons’ Lecture, charging all Nigerians to think of what they could do to improve the fortunes of the Nigerian economy, rather than what they could benefit from the economy.

In his lecture titled: “Beyond the Global Financial Crisis: Monetary Policy under Global Uncertainty”,  Emefiele noted that there was much potential within the Nigerian economy to make it as developed as other countries, which were its peers at independence but had gone ahead to become more developed.

The CBN Governor, who noted that the lecture was part of the Bank’s efforts at promoting research and collaboration with Universities, towards developing policies and programmes that will enhance the economic well-being of all Nigerians, highlighted how the crisis had helped to reshape monetary policy tools used by Central Banks to address dips in their economies.

Giving an overview of how central banks across different economic blocs responded to the global financial crisis, he noted that while the impact of the global financial crisis had little effect on the Nigerian economy, the drop-in commodity prices between 2014 – 2016, brought to the fore the limitation of conventional monetary policy tools.

According to him, “the 60 percent drop in crude oil prices between 2014 – 2016 along with normalization of Monetary Policy by the United States Federal Reserve Bank in 2014, imposed severe constraints on the Nigerian economy, given our reliance on crude oil for over 90 percent of our export earnings and 60 percent of government Read More...

Are banks ready for digital currency?

22 total views, no views today

One day, Nigeria’s paper money or banknotes would be disrupted the way it is happening with banking transaction presently, and digital currency would be in use.

Paper money would be a history just like bata and commodity. It will happen in this country, it is only a matter of time. As it were, coins are gradually going into extinct.

Digital currency is a type of currency available in digital form. It can be used to purchase goods and services but can also be restricted to certain online communities.

Central Banks have always safeguarded their country’s currencies and some like the Nigeria’s Central Bank, have issued warning against cryptocurrencies.

However, some regulators have started experimenting with the idea of cryptocurrencies and the underlying blockchain technology.

The South African (SA) Reserve Bank is warming up to the idea of digital currency and has asked the industry to help it come up with the best ideas.

Some of the world’s biggest banks are said to be investing around $50 million to build a blockchain-based digital cash settlement system.

In 2015, Swiss banking giant UBS was said to be working on a cryptocurrency that would be “linked to real-world currencies and connected to central bank accounts” along with blockchain startup Clearmatics.

Reuters report noted that Bank of New York Mellon Corp, State Street Corp, Credit Suisse Group, Barclays, HSBC Holdings and Deutsche Bank have also been working on the “utility settlement coin” (USC) project.

The International Monetary Fund (IMF) last week said that Central Bank Digital Currencies (CBDC) is one of the significant issues deserving consideration by policy makers.

The Fund said less than one-quarter of central banks around the world are actively exploring the possibility of issuing CBDC and that so far, only four pilot projects have been … Read More...

ATMs, once the future of banking, are starting to become more scarce

38 total views, no views today

In the wake of the economic crisis, Paul Volcker called automated teller machines the last financial innovation that improved society. A decade later, their popularity is slipping.

The number of ATMs around the world fell for the first time last year as banks closed branches and redirected resources toward digital payments, consulting firm RBR said in a study released Monday.

Declines in four of the world’s five largest markets — China, the U.S., Japan and Brazil — drove the 1% drop in ATMs in 2018. In the fifth, India, “growth slowed considerably,” London-based RBR said.

Bank customers are increasingly turning to their mobile phones for routine financial services, forcing banks to rethink the balance between physical and digital strategies.

JPMorgan Chase & Co., the biggest U.S. bank, cut back its branches by 2% last year while earmarking $10.8 billion for technology.

The lender saw a 5% increase in active digital customers, and an 11% gain in active mobile customers.

While the ATM count worldwide has fallen for the first time, the shift away from the machines isn’t a new phenomenon.

Bank of America Corp. cut back on its ATMs in 2012, and JPMorgan did the same in 2015. Their decline could hurt makers such as NCR Corp. and Diebold Nixdorf Inc.

Still, not every year will see a drop like last year’s. Growth in ATMs in developing markets will slow the decline, according to RBR. The firm expects the number of bank machines globally to fall just 0.6% in the next six years.

“Financial inclusion initiatives continue to bolster ATM growth in developing markets across Asia-Pacific, the Middle East and Africa and Latin America,” RBR said in a statement.



Source link

CBN urges CIBN to strengthen commitment in enhancing bankers’ professionalism

27 total views, no views today

The Central Bank of Nigeria (CBN) on Thursday night urged the Chartered Institute of Bankers of Nigeria (CIBN) to strengthen its commitment in enhancing the level and standards of professional in the banking sector.

Aishah Ahmad, deputy governor, financial systems stability directorate, said this after she was conferred with an honorary fellow award by the CIBN.

The CIBN on Thursday at its extra ordinary fellowship investiture formally conferred its honorary fellowship awards on six distinguished bankers in recognition of their contributions to the banking industry and the economy.

Others who were conferred with the same award were  Edward Adamu, deputy governor, corporate services, Peter Amangbo, managing director/CEO, Zenith Bank plc, Tony Okpanachi, managing director/CEO, Development Bank of Nigeria (DBN), Agbaje Segun, managing director/CEO, GTBank plc, Hassan Usman, managing director/CEO Jaiz Bank plc, and Bade Adeshina, Chairman, Goldfield Group.

“I am honoured like other honourees to be conferred with this fellowship, the responsibility is for us to conduct ourselves both in our personal and professional life to these high standards, to be role models and mentors to other professionals in the banking industry and also to support the Institute in its broad activities in terms of building capacity of bankers and their professionalism”, Ahmad said.

Aigboje Aig-Imoukhuede, chairman of Coronation Capital Nigeria limited, while speaking on the “Ethical Dilemma in Financial Institutions: The Way Forward”, told bankers to develop strong moral standard to deal with ethical dilemma.

Choosing the right part when faced with an ethical dilemma is not easy. He charged the participants to begin to ensuring that Nigerian banking profession resolve ethical dilemma in a way that contribute positively to building a great nation.

Aig-Imoukhuede who was the guest speaker at the CIBN extra ordinary investiture said the role of the banker has grown Read More...

IMF asks policy makers to consider Central Banks digital currencies

30 total views, no views today

The International Monetary Fund (IMF) said on Thursday that Central Bank Digital Currencies (CBDC) is one of the significant issues deserving consideration by policy makers.

Digital currency is a type of currency available in digital form. It can be used to purchase goods and services but can also be restricted to certain online communities.

This is coming as the Fund said less than one-quarter of central banks around the world are actively exploring the possibility of issuing CBDC and that so far, only four pilot projects have been reported.

Tobias Adrian, Financial Counsellor and Director of the Monetary and Capital Markets Department, IMF, stated this in his remarks titled, ‘Paving the Way for Fintech’, on Thursday in Belize City, Belize.

“Despite the challenge of achieving the right balance, every country — including the countries of the Caribbean — would be wise to prepare for and embrace the fintech revolution, in the hope of realizing its far-reaching social and economic benefits”, Adrian said.

“It seems clear that the case for CBDC adoption depends on country-specific circumstances. There doesn’t seem to be a “one size fits all” policy prescription.”

The Central Bank of Nigeria (CBN) on February 28, 2018 warned members of the public that virtual currencies are not legal tender in Nigeria

“We wish to caution all and sundry on the risks inherent in such activities”, Isaac Okorafor, director, corporate communications said.

Further to the circular issued by the Central Bank of Nigeria (CBN) on January 12, 2017, to Banks and other financial institutions on virtual currency operations in Nigeria, the Bank reiterated that cryptocurrencies such as Bitcoin, Ripples, Monero, Litecoin, Dogecoin, Onecoin, etc and Exchanges such as NairaEx are not licensed or regulated by the CBN.

There are surely some positive aspects of adopting CBDC, … Read More...