HIGH POINTS OF CBN GOV's MEETING WITH CEOS & HEADS OF AGRIC IN DMBs.ON 

18/9/15The meeting was held in Abuja and below are te high points:

1. On TSA, movement of funds to CBN in entirety was directed by the Gov.

2. Only Presidential (not just presidency) approval will be sufficient for any monies that will not be moved to CBN.

3. Retail activities of MDAs is strictly the duties of DMBs and not CBN. CBN will not attend to retail activities of MDAs whatsoever.

4. The Gov directs that no need to panic on interbank as it was never shutdown. The rate was 15.1% on Thursday Sept 17th, 2015 and no need to panic.

5. No liquidity crises as can be testified by over subscription of the N70billion Bond issued on Thursday Sept 17th, 2015 by CBN.

6. CBN is aware that deposit in DMBs have dropped owing to TSA. But CBN is interested in stability of Banking Sector much more and hence monitors DMBs' ratios constantly to ensure that any likely distortion(s) are quickly addressed.

7. Directs that Nigeria economy should be assisted not to go into ''slowing growth'' which countries like Brazil, China, South Africa are currently experiencing. 

8. All Banks to ensure extension of credit to Real Sector and Agric Sector to enable production of items excluded from foreign exchange. 

9. Some BDCs currently delving into wholesales transactions instead of restricting to their retail functions. Such BDCs and the DMBs that fail to report the suspicious transactions to be penalized by CBN.

10. The Gov insisted that all Banks must embrace granting of credit for RICE PRODUCTION and the entirety of the value chain. Promised a de-risky mechanism where CBN will be granting guarantee up to 50%. The Gov emphasized that exclusion of rice from foreign exchange has come to stay.

11. MD of NAIC accepted to embrace inclusion of other insurance companies (IGI and Leadway) licensed and approved to join in underwriting of primary agric production (a function that has hitherto been solely concentrated in NAIC.

12. MD of BOA called for comprehensive analysis of cost of production and profitability of rice value chain financing before commencement of the scheme.

13. MD of Jaiz Bank requested for inclusion of methods that will enable financing of rice production and it's value chains by non interest banking organizations like Jaiz Bank.

14. The Gov warned that the policy of massive rice production should be allowed to work. He preached against building holes and throwing spanners to derail the laudable Government and CBN initiative on rice self-sufficiency.

15. The Gov directs that all DMBs should render position on sources and application of FX from August 1, 2015 till date. The report to show exchange rate at purchase and exchange rate at which it was sold. And the report to reach CBN by close of business on Wednesday Sept 23, 2015. CBN promised to formally send notice to that effect to all MD/CEOs of DMBs by Monday September 21, 2015.

END OF THE HIGHLIGHTS.