Tuesday, August 20, 2013

Crisis: Banks Set Up N105bn Sinking Fund

Crisis: Banks Set Up N105bn Sinking Fund



The 24 deposit money banks (DMBs) operating in the country yesterday agreed to set aside not less than N105 billion into a sinking fund to cover the cost of cleaning up the system after the 2008-2009 banking sector crisis and further consolidate on the system’s post-crisis stability gains achieved in the industry over the last three years.
The Central Bank of Nigeria (CBN) and the banks signed an industry Resolution Cost Trust Fund Deed to which the DMBs are expected to contribute 0.5 per cent of total assets and  0.5 per cent of 33 per cent of their off-balance sheet assets to the sinking fund.
Going by the DMBs’ total assets which stand at N21 trillion, the sum to be set aside would amount to about N105 billion from the banks to help cover the cost of the banking crisis of two or three years ago.
This disclosure was made by the CBN director, banking supervision, Mrs Agnes Tokunbo Martins, at the end of the Bankers’ Committee meeting in Abuja yesterday.
Martins explained that what had hitherto existed to mitigate the devastating effects of the crisis in the sector was a memorandum of understanding between the CBN and the DMBs on how to clean up toxic loans from their balance sheets, adding that with the signing of the deed, they have now formally agreed on the percentage and other ratios to be used in contributing to the sinking fund.
She said: “One major event that took place today was the signing of the Resolution Cost Trust Fund Deed. This deed is between the banks and, basically, the intention is to cover the cost of the banking crisis that we had about two or three years ago.
“Initially what we had in place was a memorandum of understanding where the banks on their own agreed to contribute 0.3 per cent of their total assets to clean up the banking system at that time.
“But today the deed has been signed and what is in the deed is that the banks have agreed on their own to contribute 0.5 per cent of total assets and 0.5 per cent of 33 per cent of their off-balance sheet assets to the sinking fund.
“The whole intention that is to ensure that going forward the banking system is safe and there is no incidence whereby we have to fall back on tax payers’ money.”
On the latest CRR policy decision which required the DMBs to deposit 50 per cent of public sector deposits with the CBN and how the banks intended to deal with its implications for lending and other business, the managing director, Zenith Bank Plc, Godwin Emefiele, said the committee agreed that the banks would need to rev up their deposit drives and other marketing initiatives that would help them to sustain their financial roles in the economy.
He explained that the banks were not only well-informed about the reasons that necessitated the apex bank to adopt the policy measure but also determined to ensure that the overall objectives are achieved in the interest of the economy.
The banks, he said, will have to develop strategies to encourage the private sector to bring their cash into the banking system “and for that reason we are all aware of the cashless policy that was introduced to ensure that they are encouraged, the cost of keeping those costs in the banks are being reduced or the banks are bearing those costs themselves, and we think this will actually help the banks to mop up deposits.”
The immediate effects of the withdrawal of 50 per cent public sector funds, he explained, “is that deposit rates will go up and to that extent we expect that lending rates will go up. We believe that at some point there will a dampening effect on these and the banks will eventually bring down the lending rates just as we expect that deposit rates will come down over time.”
The deposit rates, he said, “will go up to the extent that those who are saving money in banks will earn more but unfortunately lending rates too will go up, but we do expect that as banks continue to focus on mobilizing deposits from private sectors as well as some informal sectors in the economy -- we are aware of the fact that many who have not still effectively adopted the formal banking arrangement, as we do this and encourage them to channel their funds into the bank sector -- deposit rates will come down. As this comes down, lending rates will come down which will be for the benefit of the economy.”
The managing director of Fidelity Bank, Mr Reginald Ihejiahi, on his part, said the banking system was doing its best to lend to agriculture and that lending to the sector had increased from 1 per cent to around 4 per cent and there was the possibility that lending to the sector will still increase.


7 Things Most Men Eventually Learn About Women

7 Things Most Men Eventually Learn About Women


7 Things Most Men Eventually Learn About Women
Have you ever had a man do something so right, you've thought, "Somebody must have taught him that"? Well, after getting mad at him plenty of times for the same thing, you have probably taught him what things women do and don't like. Such as:
Your spontaneity offends us: "Want to get dinner in an hour?" "I'm drunk at a bar. I want to see you, come out!" At first, men think women will read this as, "If I ask to see a women so soon, she will feel I really want to see her." They eventually learn that we see it as, "If he really wanted to see me, he would have checked what my schedule was way more in advance than this!"
The moments right after sex are crucial: Don't toss a towel at us. Don't make a phone call in bed to a buddy to talk about a stupid YouTube video. Don't leave within five minutes. Men learn these rules eventually. They learn that women need some time to just chill together after sex, maybe talk, maybe not talk at all. But, men learn that their attention can't just jet off elsewhere within minutes after intimacy. 
We're not all relationship-hungry: After women have had their hearts broken enough times in high school, college and their early twenties, they become more cautious. They choose quality over quantity. A lot of men, during that transition for women, are taken by surprise when it turns out a girl they've been seeing seriously is seeing somebody else! After this happens to them a few times they realize, "Maybe women aren't these needy, relationship-hungry people I thought they were. Maybe they keep their options open... just like I do."
Didn't call? We want an explanation! If we take hours, or days, to call a friend back, the first thing we say is, "Sorry it took so long for me to get back to you. I've been so caught up with…" Men learn that if they take a few hours, or days, to call back, and they just begin the conversation with, "Hey, how's it going?" they're probably going to get some passive aggression, some coldness, if not some straight up "How's it going?! You tell me! I haven't heard from you in three days!"
We don't always need advice: If we vent about something, and you say, "Well, maybe next time that happens you can do this and that," we feel you're saying we didn't do it right the first time. Also, we might just have wanted someone to say, "That totally sucks that that happened to you. Come here," and hug us. The time when we are emotional is not the time to get practical. Most men figure that out after a few blowups.
PMS jokes make us PMS: Any time your reaction to our emotions is, "Are you PMS'ing?" we suddenly feel that you A) don't see us as a unique individual at all, but rather just another chick run by her hormones, and B) that you really weren't listening to what we just said and all you could see as a giant "PMS" sign flashing over our heads. And then, whether we were pissed off before, we are really pissed off after. Men think the joke will shut us up. It spurs us on.
It probably won't freak us out: Worried about sending that text "I've been thinking about you," "I miss you," "I feel so lucky to have met you"? Many women have the experience of sending such a text and getting the "I'm afraid you want something more serious than I do" response. And, since men are the ones giving that response, when it comes their time to feel all needy and sentimental, they know how the tables could turn. But, eventually, they learn that women don't get scared off by those things from someone they like, but rather welcome them.

Jonathan Directs Immediate Action To End ASUU Strike

Jonathan Directs Immediate Action To End ASUU Strike



 President Goodluck Jonathan on Tuesday directed the two Federal Government committees negotiating the requests by Academic Staff Union of Universities (ASUU), to take immediate measures at ending the on-going strike.
The Chairman of the Universities Needs Implementation Committee, Gov. Gabriel Suswam of Benue, made this known after a closed-door meeting of the two committees and other stakeholders with President Jonathan at the State House.in Abuja.
Vice-President Namadi Sambo, the Chairman of the Earned Allowance Committee and the Secretary to the Government of the Federation (SGF), Sen. Anyim Pius Anyim were in attendance at the meeting.
Also in attendance were, Ministers of Education, Prof. Ruqayyat Rufai, Labour, Emeka Wogu, the Executive Secretary of National Universities Commission, Prof. Julius Okogie and the Chief of Staff to the President, Chief Mike Oghiadome.
Speaking with State House correspondents, Suswam said that the meeting was summoned by the President ``to take some decisions that would end the strike’’.
``The President has instructed us, as to what to do, and he has shown a lot of commitments to flagging off projects worth about N100 billion in all the universities in the country, about 61 of them.
``So, we are hoping that we will be able to see the end of the strike very soon.
``At the end of the day, we hope ASUU is satisfied with the measures that have so far been taken.
``The federal government will also be meeting with the Universities Councils and Vice Chancellors of our universities within the week towards updating them on some of the decisions taken,’’ he said.
Suswam said about N100 billion had been approved by the Federal Government to his committee to address infrastructure deficit in all the Universities.
``The president has graciously agreed that in the first week of September he will be able to flag-off the projects.
``You also know that the procurement process will have to be followed and these projects include hostels in our universities, classrooms and theatres, libraries and laboratories among others.
``Some are renovation some are new and all the 61 universities are going to benefit from one project or another.
``So, it is not going to be selective, all the universities are going to benefit from this infrastructural revitalisation of our universities.
The governor said that the Earned Allowance Committee being headed by the SGF, where there were contentious issues, would be addressed.
``As you must have heard, the federal government made an offer of N30 billion to assist the various Councils of our universities to be able to pay the earned allowances,’’ he said.
The News Agency of Nigeria (NAN) recalls ASUU had rejected the offer of the N30 billion by government and stood on its N87 billion demand to settle the earned allowances.
Asked whether government would be willing to shift ground on the ASUU insistence, Suswam said negotiation was still on-going,
``The federal government has opted to also meet with the Councils and Managements of the Universities, because Earned Allowance is something that can be certified by the management and councils of the universities.
``I think that the government has demonstrated some substantial faith,’’ he said.
NAN also recalls that the meeting between the striking university lecturers and the federal government delegation on Monday was reportedly deadlocked. (NAN)