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CBN Policy Committee Keeps Benchmark Interest Rate At 11.5 Per Cent

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CBN Policy Committee Keeps Benchmark Interest Rate At 11.5 Per Cent

Olushola Okunlade Writes

Central Bank of Nigeria (CBN) monetary policy committee keeps benchmark interest rate at 11.5% after the meeting noted a relatively healthy gross domestic products growth posted in the third quarter of 2021.

The monetary authority keeps the monetary policy rate 11.5% with an asymmetric corridor around the policy rate at +100/-700 basis points, cash reserve ratio at 27.5%, and liquidity ratio at 30.0%.

The decision to maintain the status quo on key policy rates at the last policy meeting committee this year aligned with some investment banking firms’ expectations.

In taking the decision, the monetary authority also considered a recent improvement in headline purchasing manager index readings in the months within the third quarter.

In addition, the committee noted the moderate but steady decline in prices as inflation declined for the seventh consecutive month. The in-house CBN forecast point towards a continued downward trend.

However, the MPC noted that security challenges across the country remained a major source of concern.  They reiterate the call to the FGN to prioritise investment in public infrastructures such as improved transportation networks, power supply, and telecommunications facilities.

The committee explains that funding for such projects has a multiplier effect on other sectors of the economy and could be sourced through equitable partnerships with foreign investors and Nigerians in the diaspora.

In appraising the financial markets, the committee observed the positive performance of the equities market within the review period and commended the sustained investor confidence in Nigeria’s economy.

MPC said capital adequacy ratio and liquidity ratio both remained above the prudential limits in the banking system. It noted that the non-performing loan ratio reflects progressive improvement compared to the corresponding period in 2020.

However, the MPC urged banks to sustain their tight prudential regime to bring NPLs below the 5% regulatory benchmark. The MPC noted that tightening the rates could increase the cost of funds and constrain output growth.

On the other hand, loosening could further widen the real interest rate gap and compound the price distortions in the money market which could exacerbate inflationary pressures.

However, the MPC believes that holding would encourage continued permeation of policy measures in supporting recorded growth and macroeconomic stability as well as allow the committee to carefully appraise the unfolding global developments around tapering and normalisation by advanced economies.

Money Market

Fidelity Bank Announces 2nd Edition Of Fidelity International Trade And Creative Connect (FITCC)

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Fidelity Bank Records Stellar Performance in FY 2022

…takes trade expo to Houston, Texas, USA in October 2023

By Moninuola Sulaiman

Building on the resounding success of the maiden edition of the Fidelity International Trade and Creative Connect (FITCC) in London, UK last November, leading financial institution, Fidelity Bank Plc, has announced plans to host the second edition of the trade expo in Houston, Texas in the United States of America.

 

Tagged FITCC Houston, the event would hold on Wednesday, 18th, and Thursday, 19th October 2023 at the George R. Brown Convention Center, 1001 Avenida de las Americas, Houston, Texas 77010.

 

Situating the critical role FITCC plays in the bank’s export trade strategy, the Managing Director/Chief Executive Officer, Fidelity Bank Plc, Nneka Onyeali-Ikpe stated that, “Fidelity Bank is very much invested in supporting export trade and has consistently demonstrated this by the interventions and innovations that we bring to the space. Beyond the instrument of financing, some of our key interventions in the space revolve around business management capacity development with initiatives like the Export Management Programme (EMP) which we host in partnership with the Lagos Business School and the Nigerian Export Promotion Council (NEPC) and market access development initiatives like FITCC.”

 

To promote Nigeria’s non-oil exports and facilitate integrations to global supply-chain networks, FITCC Houston will host leading businesses, entrepreneurs, investors, and regulators operating in the commodity, service, creative, fashion, and FinTech sectors in Nigeria and the United States. The participants would explore partnership, co-creation, and foreign direct investment opportunities.

 

Participating businesses will benefit from curated market access engagements, investment and partnership opportunities, extended brand exposure before a global audience as well as speaking and networking opportunities amongst a long list of benefits in FITCC Houston.

 

Interested businesses and participants are encouraged to register for the conference at www.fidelitybank.ng/fitcc.

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Stanbic IBTC Bank Updates Its Woman-Owned Account To include Male Signatory

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assured them of the firm’s unwavering commitment to providing the best custodial services

Rashidat Okunlade Writes

Stanbic IBTC Bank PLC, a subsidiary of Stanbic IBTC Holdings PLC and a leading financial institution in Nigeria, is thrilled to announce that its woman-owned business account, Blue Blossom account, can now be opened by female business owners who have male signatories.

This initiative is intended to foster gender equality while bolstering women’s financial empowerment and inclusion.

The Blue Blossom business account caters to the needs of women entrepreneurs and business owners throughout Nigeria. It offers them a remarkable opportunity to open and manage a business account with the added convenience of a designated male signatory. By implementing this unique feature, Stanbic IBTC Bank is taking bold steps to bridge the gender gap and promote equal representation in the business landscape.

The woman-owned account brings an array of exceptional benefits to its holders. One of its standout features is a zero-maintenance fee, providing cost-effective solutions that empower women to nurture their businesses efficiently. The account also includes complimentary online banking services, allowing holders to manage their finances and conduct transactions anytime, anywhere, conveniently.

Recognizing the crucial role of support networks in fostering women-owned businesses, Stanbic IBTC Bank has formed strategic partnerships with various esteemed business development agencies and organizations. Through these alliances, the bank aims to provide women entrepreneurs with valuable resources, mentorship programs, and networking opportunities, propelling their enterprises toward tremendous success.

“We are thrilled to unveil an account that enables women entrepreneurs to take charge of their finances and drive the growth of their businesses,” expressed Olajumoke Bello, Head, Enterprise Banking, at Stanbic IBTC Bank.

According to Olajumoke, “Stanbic IBTC remains resolute in its commitment to promoting financial inclusion and gender equality. The woman-owned account epitomizes our dedication to these values and shows our relentless support for women entrepreneurs.”

By introducing the woman-owned account, Stanbic IBTC Bank reaffirms its ongoing efforts to support women-owned businesses, foster gender equality, and stimulate economic growth across Nigeria. As a frontrunner in the financial sector, the bank is steadfast in its mission to deliver tailored financial solutions that address the unique challenges and aspirations of women entrepreneurs and business owners, ultimately empowering them to realize their full potential and achieve their business goals.

In a rapidly evolving world where inclusivity and equal opportunities are paramount, Stanbic IBTC Bank remains at the forefront, pioneering initiatives that break barriers and create a level playing field for women in business. The woman-owned account is just one of the bank’s innovative initiatives, embodying their unwavering commitment to shaping a future where women entrepreneurs can thrive and contribute significantly to the Nigerian economy.

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NUBIFIE Picketing: Polaris Bank Restates Commitment To Staff Welfare

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Polaris Bank Commences Phase IV Breast Cancer Screening Exercise For Staff, Customers

By Moninuola Sulaiman

Polaris Bank has clarified that she did not violate any law in a recent disengagement of some staff which it said was done in line with the terms of the contract guiding their engagements

The Bank was reacting to a report of the picketing of its headquarters by NUBIFIE this morning by a section of the media.

The Bank disclosed that it has engaged and will continue to engage the union to resolve any lingering labour matters.

The Bank emphasized that a cordial relationship has existed between her and the union over the years and believes that concerns raised by either party can be effectively addressed through dialogue.

Polaris Bank remains committed to fostering a harmonious working relationship and ensuring the well-being of its employees.

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