THE BANKING CRISIS & ITS EFFECTS

WELCOME TO A NEW WEEK WITH SOMUCH HOPE AND CHALLENGES. YES! THE BANKING SYSTEM IN NIGERIA IS BEING SANITISED BY THE CBN BUT THE EFFECT ON THE GENERAL PUBLIC ESPECIALLY THE LAY MAN IS THAT THERE IS NOTHING GOOD AND NOTHING TO BE TRUSTED AGAIN. THE CAPITAL MARKET TODAY HAS REMAINED ON THE LOW SIDE BASED ON THE FACT THAT INVESTOR'S CONFIDENCE WAS LOW AND NOW WITH WHAT IS HAPPENING IN THE BANKS, MOST PEOPLE ARE NOW EVEN AFRAID TO DEPOSIT THEIR MONEY IN BANKS. WHERE DOES THIS LEAVE US?
THERE ARE REPORTS ON DEPTORS FROM CBN WHICH HAS BEEN SAID TO BE FAULTY IN THAT IT IS NOT UP TO DATE. IMAGINE THE NEGATIVE EFFECT THIS KIND OF LIST WE HAVE ON THE BUSINESSES WHOSE NAMES WHERE PUBLISHED. ANOTHER INTERESTING THING IS THAT SOME OF THESE COMPANIES LISTED ONLY TOOK LOANS AND ADVANCED TO THEIR CLIENTS TO INVEST WITH AND NOW THE INVESTMENT WAS TO SERVE AS COLLATERAL BUT AS THINGS TURNED OUT, THE VALUE OF THOSE INVESTMENTS HAVE DROPED WHILE THE CLIENTS ARE UNABLE TO PAY AND AS SUCH THE COMPANIES TOO ARE UNABLE TO PAY THE BANKS.
SO NOW THAT THESE COMPANIES NAMES ARE BEING PUBLISHED, SHOULD THEY NOW GO AHEAD AND PUBLISH THE NAMES OF THESE INDIVIDUALS TOO?

WELL IN THE WHOLE HE EFFECT IS SOME HOW NEGATIVE AS IT WILL ONLY FURTHER REDUCE NOT ONLY INVESTOR'S CONFIDENCE IN THE SYSTEM BUT ALSO DEPOSITORS. THE CBNM HAS TO THINK OF A WAY TO FIX THIS BEFORE IT RESULTS TO FURTHER ECONOMIC ISSUES OF LIQUIDITY.

FOR YOU OUT THERE I STILL SAY INVEST IN FUNDAMENTALLY STRONG COMPANIES LIKE FIRSTBANK AND GTBANK ETC. AND INVEST IN LAND AFTER CONFIRMING THE TRUE OWNERSHIP OF SUCH LAND. NEED HELP CALL CHRISTIE ON 07032335367.