Financial Services
JAIZ Bank Plc set for private placement
This call is in a bid to get the support of relevant stakeholders in raising additional capital through private placement.
JAIZ Bank Plc, has announced plans for a private placement that will see the injection of fresh capital into the company, and bring in new investors.
This information is contained in a recent call for Extra-Ordinary General Meeting (EGM), to be held on October 28, 2020, in Abuja; made public and signed by the Bank’s Secretary, Mrs. Rukayat Oziama Dahiru. This call is in a bid to get the support of relevant stakeholders in raising additional capital through private placement.
The directors through the meeting, plan to raise an additional N10 billion through private placement and offer for subscription N20 billion ordinary shares of the bank, at the rate of 65 kobo per share to identified investors, all subject to the approval of pre-requisite bodies and regulator
Recall that an earlier article by Nairametrics showed that the bank reported an increase in most of its key indicators for H1, 2020, such as Profit After Tax that rose by 45.3% to N1.1 billion, Gross income which appreciated by 39% to N8 billion, etc.
(READ MORE: Jaiz Bank Plc appoints new directors)
Jaiz Bank Plc is a non-interest bank, operating based on sharia laws in Nigeria. It is the first non-interest bank established in Nigeria and headquartered in Abuja, the capital city of the country.
Based on its last financials for H1, 2020, JAIZ Bank has estimated total assets worth of N186.6 billion, and currently operates in about 27 branches in Nigeria.
Financial Services
CBN to drive implementation of zero balance account opening in banks
The CBN has urged the DMBs to allow zero balance for the opening of new accounts.
The Central Bank of Nigeria (CBN) has urged the Deposit Money Banks (DMBs) to allow zero balance for the opening of new accounts, as part of the efforts to promote greater financial inclusion across the country.
In addition, the banks are also expected to simplify their account opening processes, while adhering to Know-Your-Customer (KYC) requirements in the push towards financial inclusion.
READ: This is where PSB, CBN got it all wrong
READ: CRR: Banks suffer N917.5 billion debits in latest CBN action
This disclosure was made in the Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for 2020/2021 fiscal year, which was issued by the Central Bank of Nigeria (CBN).
While stating that these measures are part of the efforts to encourage banks to intensify deposit mobilization during the 2020/2021 fiscal years, the apex bank also encouraged banks to develop new products that would provide greater access to credit.
READ: Nigeria @ 60: The Banking Sector and the Nigerian economy
A part of the report reads, “As part of its effort towards promoting greater financial inclusion in the country, the bank shall continue to encourage banks to intensify deposit mobilization during the 2020/2021 fiscal years. Accordingly, banks shall allow zero balances for opening new bank accounts and simplify their account opening processes, while adhering to Know-Your-Customer requirements.
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“Banks are also encouraged to develop new products that would provide greater access to credit.”
In addition, the apex bank said that the Shared Agency Network Expansion Facility (SANEF), which was established to enhance the provision of financial services access points in under-served and unserved locations and drive financial inclusion through agent banking, would continue in the 2020/2021 fiscal years.
READ: CBN launches framework for advancing women’s financial inclusion in Nigeria
It states that banks, mobile money operators, and super-agents would continue to render returns in the prescribed formats and frequency to the CBN.
Exclusives
CRR: Banks suffer N917.5 billion debits in latest CBN action
The central bank debited Nigerian banks N917.5 billion last week in its latest CRR action.
Nigerian banks suffered a total of N917.5 billion in new CRR debits from the Central Bank of Nigeria. Reliable sources inform Nairalytics Research that the latest debits occurred in the week ended October 23rd, 2020.
The cash reserve requirement is the minimum amount banks are expected to leave retained with the Central Bank of Nigeria from customer deposits. In January, the CRR was increased by 5% to 27.5% by the CBN Monetary Policy Committee (MPC) who explained that the decision was intended to address monetary-induced inflation whilst retaining the benefits from the CBN’s LDR policy.
READ: CBN says 17 banks to restructure over 32,000 loans
CRR Debits for Nigerian Banks.
Nairalytics Data
READ: Union Bank suffers N188 billion in CRR debits as at June 2020
From the data, Zenith Bank topped the list with N285 billion followed by UBA with N160 billion. The rest of the FUGAZ, Access, FBN, and GTB were debited N140 billion, N95 billion, and GTB N55 billion respectively. The FUGAZ also suffered a N1.9 trillion debit in CRR sequesters in the second quarter of 2020 (April – June) alone.
READ: Nigeria’s forex devaluation timeline – 2020
Nigeria’s central bank has since 2019 debited Nigerian banks a chunk of their deposits as part of a mutually inclusive cash reserve requirement (CRR) and Loan to Deposit Ratio policy that is targeted at coercing banks to lend more to the private sector.
READ: CBN reviews minimum interest rates on savings deposit to 1.25%
Last month, Nairametrics reported that the CBN now holds a total of N6.57 trillion in CRR debits from the nation’s top 5 banks a whopping 43% higher than the N4.58 trillion held in March and more than double the N3.5 trillion CRR debits as of December 2020. CRR debits in the third quarter of 2020 will be revealed when banks release their results in the coming days and weeks.
READ: Nigeria’s telecom sector posts double digit growth of 18.1%, manufacturing, others contract
Meffynomincs: CBN under the leadership of Godwin Emefiele has deployed several heterodox policies as it strives to stimulate the economy and manage the exchange rate crisis in the absence of strong fiscal support.
- Interest rates on fixed deposits and money market instruments have fallen to single digits despite the galloping inflation rate.
- Last month, the CBN monetary policy committee admitted it was no longer combating inflation but will direct its policies towards stimulating lending to the private sector hoping this will spur local production.
- This policy has placed banks in the crosshairs with the Apex bank exposing them to CRR debits if they cannot use customer deposits to spur lending.
ENDSARS
#EndSARS: Access Bank announces N50 billion interest-free facility for businesses
Access Bank Nigeria Plc has announced plans to offer N50billion interest-free credit facility to individuals and businesses.
Access Bank Nigeria Plc. has announced N50 billion in support of Nigerians through interest-free loans and grants to support communities, the youths, and micro, small and medium-sized businesses.
READ: Access Bank gets regulatory approval to become a Holding Company
READ: Banks lay-off 2,477 staff during lock-down
This information was disclosed by the bank through its official LinkedIn page.
The bank’s official statement read thus,
“Now more than ever, we remain committed to our purpose of impacting lives positively. In light of the recent occurrences, we will be supporting Nigerian businesses with 50 Billion Naira interest-free loans and grants. Watch this space for more information.”
READ: Access, GTBank, two others pay PWC & EY N1.5 billion as Audit fees in H1 2020
Why it matters
The impact of the pandemic, coupled with the hijacked #EndSARS protests that led to the looting of businesses and destruction of properties has thrown so many Nigerians into debts.
READ: $70 billion per annum will be needed to tackle pandemic induced poverty – World Bank
READ: WTO DG: US, EU divided over Nigeria’s Okonjo-Iweala and South Korea’s Yoo
This show of support from Access Bank will help alleviate and stimulate economic activities, as well as produce many positive multiplier effects on the economy.
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