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LequteMan
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Nigeria - FBN Holdings Plc on Wednesday in Lagos announced an operational lost of N64 billion in 2014 due to regulatory headwinds of the Central Bank of Nigeria (CBN).
The News Agency of Nigeria (NAN) reports regulatory headwinds are measures introduced by CBN and the monetary policy committee to manage inflation and liquidity in the system.
Mr Bello Maccido, FBN Holdings Group Chief Executive Officer, said this during the company's ``Facts behind the figures'' at the Nigerian Stock Exchange (NSE) in Lagos.
According to him, the company lost N64 billion to the increase in cash reserve requirement (CRR) for both public and private sector to 75 per cent and 20 per cent respectively by the apex bank.
Maccido said that the enforcement of treasury single account with 25 per cent of qualified public funds withdrawn monthly by the CBN contributed also to the banking group loss.
He said that monetary policy tightening through foreign exchange sales restrictions and closure of retail dutch auction sales (RDAS) window affected the company's revenue generation.
The other challenging regulatory backdrop of the group in the period under review include the implementation of Basel 2 requirement in October 2014.
On the commencement of Basel 2, Maccido said that the company had no immediate plans to raise Tier 1 capital in the next 12 months due to low market liquidity.
He said that the company would not access the market for fresh funds due to depressed situation of the market and depressed valuation of its stock.
The chief executive officer said that weak market liquidity and experiences of some new issues that accessed the market in the recent times informed the company's decision.
#Nigeria #CBN #FBN
The News Agency of Nigeria (NAN) reports regulatory headwinds are measures introduced by CBN and the monetary policy committee to manage inflation and liquidity in the system.
Mr Bello Maccido, FBN Holdings Group Chief Executive Officer, said this during the company's ``Facts behind the figures'' at the Nigerian Stock Exchange (NSE) in Lagos.
According to him, the company lost N64 billion to the increase in cash reserve requirement (CRR) for both public and private sector to 75 per cent and 20 per cent respectively by the apex bank.
Maccido said that the enforcement of treasury single account with 25 per cent of qualified public funds withdrawn monthly by the CBN contributed also to the banking group loss.
He said that monetary policy tightening through foreign exchange sales restrictions and closure of retail dutch auction sales (RDAS) window affected the company's revenue generation.
The other challenging regulatory backdrop of the group in the period under review include the implementation of Basel 2 requirement in October 2014.
On the commencement of Basel 2, Maccido said that the company had no immediate plans to raise Tier 1 capital in the next 12 months due to low market liquidity.
He said that the company would not access the market for fresh funds due to depressed situation of the market and depressed valuation of its stock.
The chief executive officer said that weak market liquidity and experiences of some new issues that accessed the market in the recent times informed the company's decision.
#Nigeria #CBN #FBN
