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Bank Executives make moves to salvage SMEs

By on April 10, 2013

The Bankers Committee, comprising of the Chief Executive of Banks, has in their plan to salvage the small and medium enterprises promise to drastically reduce the interest rate  to encourage popular participation in  the real sector.

The Committee equally underscored the need to support these sectors  (SMEs) as hitherto they have not benefited as much as the other sectors, adding that the committee will synergies with the authorities of the Nigerian Police to guarantee maximum security within and around the bank premises.

The Managing Director of Union Bank, Mr Emeka Emeuwa stressed that the committee in collaboration with the office of the Inspector General of Police has promised dedicated commitment of the banks in supporting the security forces in their quest to deliver of maximum security of the banks and its properties

These were among other decisions unanimously taken by the Bankers Committee at the end of their monthly meeting held in Abuja.

Briefing the Press at the end of the meeting, The Managing Director, Citi Bank Mr. Hafiz Omar noted that the meeting dwelled extensively in structural reform including power, infrastructure deficit and PIB which is targeted at unlocking the  oil and gas industry, ” Structural reform has become very  important as the current flow into the country are in form of portfolio which are short-term in nature. Though it was agreed that the portfolio are important in their own capacity as they bring in substantial liquidity into the market and their exit can cause real fluctuation. the policy will ensure that the funds that comes into the market remains for long time purposes, thus, attracting more foreign direct investment (FDI)”.

In highlighting the reasons behind the shortage in circulation of the lower denomination of Naira. The Director of Banking Supervision, Central Bank Mrs Tokunbo Martins said ” the issue was extensively discussed in the meeting we just had and it is expected that at the end of the banker retreat which is currently going on, modalities and process will be initiated to ensure that lower and quality currency are release”. In addition the Director of Communication, Mr. Ugochukwu Okoroafor admitted challenges faced by the apex bank, noting that the bank is working hard to tackle the challenges.

On the issues of hidden charges by commercial banks, the MD of Diamond Bank, Mr Alex Oti who doubled as the Banks CEOs of the Chartered Institute of Bankers promised to investigate the allegations of hidden charges by banks, ” it is news to me of the allegation of charges, we are going to investigate and if any bank is found violating the decisions of the bankers committee will face the music. We will streamline and public bank charges so that the customers can be acquainted with the charges that they are entitle to pay.

Explaining further on structural reforms, the MD of Citi Bank Mr. Hafiz Omar said the Power and other infrastructure are critical to the attraction of FDI including the PIB which is suppose to unlock the oil sector.

[Daily Times]