I thought the complaints were that Banks not lending to SMEs or the manufacturing sector and therefore not contributing to economic development which is one of the mandates for banks in a society.
The CBN’s increased interest rates also don’t help matters, agreed. But wealthy banks in poor economies just don’t make sense. But Nigeria is too big for a small set of elite to keep on making money while the majority wallow in poverty.
After Oil & Gas, Manufacturing is the second largest sector that Zenith bank lent to.
Same story with GTB. Too lazy to check the others but I suspect the story is the same across board.
SMEs are underserved because they lack structure in their bookkeeping which makes it difficult to assess ability to repay.
The banks, as an industry, are the largest employers of labor in the country. (Probably need some fact checking on this). That “small set of elite” brings in far more prosperity than any other sector. The reason the majority wallow in poverty is because the government is set it up that way. Why is the anger that they deserve focused on the one sector that figured out how to work in our terrain?
If I may, the anger (my anger) is Nigeria could be doing so much more. There’s a mandate from this same CBN that banks need to lend to SMEs up to a certain percentage (not sure now what exactly it is). No bank in Nigeria is meeting that mandate - while they are declaring trillions in profit.
You don’t build an economy by congratulating yourselves on profits while potential customers are wallowing in poverty. Check the Grameen Bank model in Bangladesh. Muhammad Yunus (which I’m sure you know) won a Nobel prize for that work. Not everything is profit - except you’re just part of an elite comfortable with wallowing poverty. It gets me mad!
The objective of the business is to deliver value to the shareholders not stop people from wallowing in poverty. The government is responsible for building the economy.
It’s clear we have different premises and goals. You’ve also done a good explanation of why the situation is the way it is. I think it should change.
In a year where interest rates are up, corporates contributed only 18.5% of deposits in Zenith but went away with 76.8% of their loan portfolio. SMEs and retail? 73% deposit contribution, only to end up with 14.9% of the loans Zenith gave out. Literally taking money from the poor and giving to the rich and making some money off it.
Conservative banks don’t make strong economies, but like you said, shareholders are smiling to the bank so we all should be alright.
I thought the complaints were that Banks not lending to SMEs or the manufacturing sector and therefore not contributing to economic development which is one of the mandates for banks in a society.
The CBN’s increased interest rates also don’t help matters, agreed. But wealthy banks in poor economies just don’t make sense. But Nigeria is too big for a small set of elite to keep on making money while the majority wallow in poverty.
After Oil & Gas, Manufacturing is the second largest sector that Zenith bank lent to.
Same story with GTB. Too lazy to check the others but I suspect the story is the same across board.
SMEs are underserved because they lack structure in their bookkeeping which makes it difficult to assess ability to repay.
The banks, as an industry, are the largest employers of labor in the country. (Probably need some fact checking on this). That “small set of elite” brings in far more prosperity than any other sector. The reason the majority wallow in poverty is because the government is set it up that way. Why is the anger that they deserve focused on the one sector that figured out how to work in our terrain?
If I may, the anger (my anger) is Nigeria could be doing so much more. There’s a mandate from this same CBN that banks need to lend to SMEs up to a certain percentage (not sure now what exactly it is). No bank in Nigeria is meeting that mandate - while they are declaring trillions in profit.
You don’t build an economy by congratulating yourselves on profits while potential customers are wallowing in poverty. Check the Grameen Bank model in Bangladesh. Muhammad Yunus (which I’m sure you know) won a Nobel prize for that work. Not everything is profit - except you’re just part of an elite comfortable with wallowing poverty. It gets me mad!
The objective of the business is to deliver value to the shareholders not stop people from wallowing in poverty. The government is responsible for building the economy.
It’s clear we have different premises and goals. You’ve also done a good explanation of why the situation is the way it is. I think it should change.
In a year where interest rates are up, corporates contributed only 18.5% of deposits in Zenith but went away with 76.8% of their loan portfolio. SMEs and retail? 73% deposit contribution, only to end up with 14.9% of the loans Zenith gave out. Literally taking money from the poor and giving to the rich and making some money off it.
Conservative banks don’t make strong economies, but like you said, shareholders are smiling to the bank so we all should be alright.