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Tag: Banks

  • Are Nigerian Banks at risk? CBN responds to viral allegations

    Are Nigerian Banks at risk? CBN responds to viral allegations

    The Central Bank of Nigeria (CBN) has moved to dispel concerns about the stability of the country’s banking sector following controversial claims circulating on social media.

    In a statement issued by Mrs. Hakama Sidi-Ali, Acting Director of Corporate Communications, the CBN reaffirmed that Nigeria’s banking system remains strong, secure, and resilient.

    “The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound,” she stated.

    Sidi-Ali clarified that all licensed banks, including the institution referenced in the circulating reports, are in full compliance with stringent regulatory standards, ensuring the safety of customer deposits.

    The apex bank also reiterated its commitment to ongoing oversight of financial institutions through robust risk management frameworks that help identify and address potential issues early.

    “These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system,” she added.

    The CBN urged the public to disregard unverified or sensational claims and to rely solely on information from official channels regarding the state of the financial sector.

    Mrs. Sidi-Ali concluded by emphasizing the CBN’s continued efforts to maintain a secure and stable banking environment where the public can trust that their funds are well-protected.

    “The CBN will continue to monitor and evolve strategies to safeguard the financial interests of all Nigerians and stakeholders,” she said.

  • Follow global standards to combat illicit $1.3trn funds flow, CBN orders banks

    Follow global standards to combat illicit $1.3trn funds flow, CBN orders banks

     

    The Central Bank of Nigeria (CBN) has directed financial institutions nationwide to strictly comply with global banking standards to help curb the movement of $3 trillion in illicit funds worldwide.

    The apex bank stated that adherence to this directive would bolster confidence in Nigeria’s financial sector and enhance its stability.

    It reaffirmed its commitment to fostering a transparent and resilient financial system through stringent regulatory compliance and risk management measures.

    In a statement released on Sunday, the CBN revealed that Ms. Shola Phillips, Special Adviser to the CBN Governor on Compliance, delivered this message at a high-level Mandatory Compliance and Anti-Money Laundering (AML) Training Workshop over the weekend.

    Phillips emphasized the need for financial institutions to proactively adapt to evolving regulatory requirements to maintain integrity and prevent financial crimes.

    The training brought together compliance officers, trade operations specialists, and correspondent banking teams from various financial institutions. It provided critical insights into global regulatory trends, emerging financial risks, and strategies for maintaining correspondent banking relationships, which are crucial for international transactions.

    Speaking at the workshop, Siobhan Ni Ealaithe, Managing Director of Citi’s Correspondent Banking Group, stressed the importance of strong governance frameworks in reducing financial risks. She highlighted the role of Know Your Customer (KYC), Know Your Business (KYB), and Know Your Transaction (KYT) protocols in preventing illicit financial activities.

    Stephanie Bailey, Head of EMEA AML Risk Management for Foreign Correspondent Banking, revealed that over $3 trillion in illicit funds circulate through the global financial system annually. She urged financial institutions to strengthen their due diligence measures, use technology-driven risk assessments, and maintain transparency in all transactions to combat financial crime.

    According to the CBN, the workshop aligns with Governor Olayemi Cardoso’s vision of strengthening Nigeria’s financial system through regulatory excellence. Governor Cardoso has consistently stressed the importance of trust and integrity in building a robust financial sector.

    “A strong financial system is built on trust, and trust is earned through integrity and compliance. The CBN will continue to set high regulatory standards to protect Nigeria’s financial ecosystem and ensure its alignment with global best practices,” he stated.

  • Insider loans: CBN issues sweeping directive to banks

    Insider loans: CBN issues sweeping directive to banks

    The Central Bank of Nigeria (CBN), Nigeria’s banking regulator has issued a sweeping directive asking many banks to comply with stricter insider lending limits or risk regulatory sanctions.

    This was contained in a letter to banks, where the Central Bank of Nigeria (CBN) set a 180-day deadline for financial institutions to regularize all insider-related credit facilities that exceed the statutory limits prescribed under the Banking and Other Financial Institutions Act (BOFIA) 2020.

    The move is part of broader efforts to rein in governance lapses and curb excessive exposure to politically connected or influential insiders, a long-standing issue in Nigeria’s financial sector.

    Crackdown on Insider Lending

    Insider lending where banks extend credit to their directors, top shareholders, or affiliates—has long been a source of corporate governance risk in Nigeria.

    The CBN, wary of the impact on financial stability, has now made it clear that banks must bring all insider-related exposures within regulatory limits within six months.

    At the heart of the directive is Section 19 of BOFIA 2020, which caps lending to insiders at a percentage of a bank’s total loan book.
    However, in recent years, some banks have received CBN approvals for insider-related facilities without clear timelines for compliance, leaving room for regulatory arbitrage.

    The latest directive closes that loophole, ensuring that all insider loans are brought into compliance without exception.

    In addition to compliance, banks are now required to submit periodic reports to the CBN, detailing the status of their insider lending portfolios and actions taken to conform with the new requirements.

    What this means for Banks
    For Nigeria’s top-tier lenders, the new rules are unlikely to pose a significant challenge, as many have spent the past decade cleaning up their books and strengthening corporate governance structures. However, smaller and mid-sized banks—where insider lending tends to be more prevalent—could struggle to meet the deadline without significant balance sheet restructuring.

    “There’s no doubt that some banks will be forced to unwind large insider positions or seek creative refinancing solutions to meet the deadline,” said a senior banking executive who asked not to be named. “The days of unchecked insider lending are clearly over.”

    The directive could also prompt banks to reassess their risk management frameworks, particularly in related-party transactions. Analysts believe that non-compliance could expose banks to heightened regulatory scrutiny, capital adequacy concerns, and potential penalties, further compounding an already challenging macroeconomic environment.

    The Bigger Picture
    The timing of the CBN’s directive is significant. Nigeria’s banking sector is undergoing a major transformation, with a recapitalization drive expected to reshape the industry.

    The regulator is keen to ensure that banks operate with stronger governance structures ahead of anticipated industry consolidation.

    Furthermore, the crackdown on insider lending aligns with broader financial reforms aimed at curbing systemic risks in the wake of previous banking crises.

    The 2009 banking sector meltdown, triggered in part by reckless insider lending and lax oversight, remains a cautionary tale.

    “Limiting insider-related credit exposure is a fundamental step towards entrenching discipline and accountability in the banking sector,” said a Lagos-based financial analyst. “The CBN’s latest directive signals a shift toward tighter oversight at a time when the industry is preparing for the next phase of growth.”

    One of the biggest implications of the CBN’s directive is its potential effect on bank directors who hold significant ownership stakes.

    Under the insider lending rules, these directors—who may have previously secured large credit facilities from their own banks—will now face increased pressure to either bring their loans within regulatory limits or step aside from the board to retain access to credit.

    Given that BOFIA 2020 imposes strict caps on insider-related loans, directors with substantial borrowing may find themselves at a crossroads: pay down the loans, restructure them under different terms, or exit board positions to avoid breaching compliance rules.

    This could lead to a wave of boardroom shakeups, particularly in banks where influential shareholders also serve as executive or non-executive directors.

    What Happens Next?

    With the 180-day clock now ticking, banks must act swiftly to comply. The coming months could see a flurry of loan restructuring, potential debt sales, or even equity injections to dilute excessive insider exposure.

    For some banks, the impact could extend beyond regulatory compliance, influencing lending policies, risk appetite, and strategic planning.

    Ultimately, while the directive may pose short-term challenges, it is a necessary step toward fortifying Nigeria’s banking system, ensuring that banks lend based on merit rather than connections.
    Bottom Line

    The CBN’s stance is clear: banks must curb insider lending or face the consequences. As the deadline looms, Nigeria’s financial institutions are now racing to adjust, reinforcing the regulator’s commitment to a more transparent, resilient banking sector.

  • CBN, banks sell $9.9bn as naira tumbles to N1,670/$

    CBN, banks sell $9.9bn as naira tumbles to N1,670/$

    The Nigerian Autonomous Foreign Exchange Market increased to N15.74tn ($9.90bn) in August 2024, an FMDQ report has stated.

    This came as the Central Bank of Nigeria revealed that foreign inflow into the country increased to $585m in the same month.

    Also, at the official market on Tuesday, the value of the naira dropped to N1,658 against the United States dollar from the N1,659 it sold on Monday while black market sellers sold at the rate of N1,670.

    The CBN said the impressive turnover via the Nigerian Autonomous Foreign Exchange Market represents a significant month-on-month increase of 33.88 per cent, equating to an additional N2.51tn from July 2024’s turnover of N13.23tn ($7.39bn). value of foreign exchange turnover via the Nigerian Autonomous Foreign Exchange Market increased to N15.74tn ($9.90bn) in August 2024, an FMDQ report has stated.

    This came as the Central Bank of Nigeria revealed that foreign inflow into the country increased to $585m in the same month.

    Also, at the official market on Tuesday, the value of the naira dropped by N1 to N1658 against the United States dollar from the N1,659 it sold on Monday while black market sellers sold at the rate of N1,700.

    The CBN said the impressive turnover via the Nigerian Autonomous Foreign Exchange Market represents a significant month-on-month increase of 33.88 per cent, equating to an additional N2.51tn from July 2024’s turnover of N13.23tn ($7.39bn).

    This surge reflects heightened trading activity and investor engagement in the foreign exchange market.

    Commercial banks, CBN, and international oil firms are the major sellers of forex at NAFEM.

    According to the financial markets monthly report for August published by the FMDQ and obtained by our correspondent on Tuesday, the increase in turnover was driven by the increase in T.bills, OMO Bills, and FGN Bonds transactions, while transactions in other bonds recorded a MoM decrease of 18.43per cent (N10bn).

    Despite this increase, the naira experienced continued depreciation, contributing to increased exchange rate volatility.

    The report read, “Spot FX market turnover was $9.90bn (N15.74tn) in August 2024, representing a 33.88 per cent ($2.51bn) MoM increase from the turnover recorded in July 2024 ($7.39bn).”

    It also stated that total secondary market turnover on FMDQ Exchange was N40.43tn, which represents a MoM increase of 31.97 per cent (N9.79) and a YoY increase of 128.57 per cent ( 22.74tn) from July 2024 and August 2023 figures, respectively.”

    The FMDQ added that foreign Exchange and Money Market transactions dominated secondary market activity, jointly accounting for 69.98 per cent of the total secondary market turnover in August 2024.

    In August, the naira traded within a range of 1,543.84 to N1,617.08, indicating heightened fluctuations compared to the previous month’s range of 1,500.32 to N1,621.12.

    It said the average spot exchange rate rose by 1.68 per cent (N26.24) to close at N1,586.56, compared to N1,560.32 in July.

    “In the FX Market, the Naira depreciated against the US Dollar, with the spot exchange rate increasing by 1.68 per cent ($/N26.24) to close at an average of $/ N1,586.56 in August 2024 from $/N1,560.32 recorded in July 2024.

    “Further, exchange rate volatility increased in August 2024 as the Naira traded within an exchange rate range of $/N1,543.84 – $/N1,617.08 compared to $/N1,500.32 – $/N1,621.12 recorded in July 2024.”

    This increased volatility underscores the challenges facing the Naira amidst ongoing economic pressures, including inflation and shifts in global market dynamics.

    Last month, the Central Bank of Nigeria auctioned $876.26m to end users through 26 commercial banks in its latest effort to strengthen the ailing Naira.

    This policy led to a temporary appreciation of the Naira against the US Dollar, with the exchange rate adjusting to N1,596.52/$ from N1,601/$.

    The auction sold about $876.26m, aimed at alleviating rising demand pressures in the forex market and promoting price discovery.

    The sales report highlighted that businesses in the manufacturing sector benefited significantly from the auction, securing dollars for importing spare parts, industrial raw materials, plain paper, pharmaceutical products, and equipment for breweries.

    At the official market on Tuesday, the value of the naira dropped by N1 to N1658 against the United States dollar from the N1,659 it sold on Monday while black market sellers sold at the rate of N1,700.

    Meanwhile, the CBN Governor, Olayemi Cardoso, has stated that the value of naira against international currencies cannot increase if the fundamentals of forex expenses are not addressed.

    Cardoso, speaking at a press briefing at the end of the 297th Monetary Policy Committee meeting, revealed that Nigeria’s external reserves have increased yet again, reaching $39.07bn as of September 19, 2024.

    He said since the strategy of the apex bank is to unlock as many diversified sources as possible into the foreign exchange section, it is not enough and can never replace the fundamentals.

    He said, “The external reserve stood at US$39.07bn as at 19th September 2024 an increase of 17.4 per cent compared with US$33.28bn in the corresponding period of 2023. This represents 8 months of import cover for goods and services and 13 months of imports of goods only.”

    “As of August, inflow from remittances was $585m and this is a big deal as it is 130 per cent for the corresponding period last year. These figures didn’t drop from the ceiling but our deliberate and calculated effort. We recognised that certain things were not happening. We liberalised the IMTOs and encouraged them to open accounts in naira and we are normally dealing with them regularly and this has incredibly paid off.

    “But on the naira, I must tell you that since the strategy of the central bank is to unlock as many diversified sources. it is not enough and can never replace the fundamentals.”

    The central bank governor further explained that as long as the country operates on a monolithic economy, achieving a strong exchange rate “that we all so desire” would continue to be hampered.

    “Non-oil exports must also increase. Having an exchange rate that we all so desire will continue to be hampered. We need to diversify our economy to boost the naira. We may like to think or dream it can, but it can’t. Until the fundamentals are fixed and in place, you will continue to sub-optimise,”

    “Oil production has got to be ramped up to the level that will carry the economy. I think we are all ongoing witnesses to the efforts that are being made in that sector. It has to happen. I spoke about the sad situation that we as Nigerians face today whereby we are a monolithic economy.

    “We need to diversify our economy. There is so much that a central bank can do. Without the fundamentals in the right position, we will continue to sub- optimiser,” Cardoso added.

    The CBN governor said Nigerians must find ways to achieve import substitution.

    “It can not just be about import and we must be able to calibrate accordingly our taste for foreign goods,” Cardoso said.

    “These are all things that will determine essentially where we settle in respect to our foreign exchange rate.”

    He said the central bank is determined to play its part in ensuring that the market operates efficiently while warning that the apex bank is ready to penalise “those who play the market”.

  • See how fraudsters swept N43bn from Nigerian banks in 91 days

    See how fraudsters swept N43bn from Nigerian banks in 91 days

    The Financial Institutions Training Centre (FITC) has revealed that a whopping N42.6 billion was lost to frauds within the second quarter, (April -June) of 2024.

    The FITC, in its Q2 2024 Fraud and Forgeries report just released, noted that the development is worrisome.

    With the staggering increase in losses to fraud, the Centre advised the banks to enhance their monitoring and auditing procedures.

    According to the FITC, deposit money institutions can utilize AI-driven tools that flag unusual entries or patterns to implement continuous and automated monitoring systems that can detect anomalies or discrepancies in settlement files.

    Additionally, regular unannounced internal audits focusing specifically on settlement processes can be conducted to identify and address any irregularities promptly.

    With a total of about N9.4 billion loss for the whole of last year, the second quarter loss alone is a major leap, a development that analysts say the end of year figures might be mind bugling and worrisome.

    Also, the amount shows an embarrassing increase when compared with the N468.4 million lost in Q1 2024.

    N5.7 billion loss was recorded in Q2 of last year.

    Major channels for the perpetration of these crimes, according to FITC include, ‘miscellaneous and other fraud’ with the largest loss of N41.14 billion or 96.46% of the total amount lost.

    This was followed by losses from fraudulent withdrawals and computer/web fraud, amounting to approximately N781.2 million and N400.7 million, respectively.

    Some analysts last night blamed the ugly development, partly to the growing incidences of insider abuses, ocassioned by the overbearing influences of ‘owner chairmen’ as well as billionaire owners running the institutions through their proxies.

    Also, the rat-race for supremacy and meeting up of some regulatory requirements were identified as contributory factors.

    This is even as the analysts also blame the Central Bank of Nigeria (CBN) for what they regard as ‘supervisory laxity’ ocassioned by what they also attribute to the apex bank’s preoccupation with mundane issues, outside its purview, particularly in recent times.

    “CBN is becoming overtly involved in the management of the economy and leaning more to government bidding than its price and exchange rate stability, among other core mandate. Concentrating more efforts to increasing FDIs, attainment of the proposed $1 trillion economy, may not be the best options as similar efforts and energy should be directed at periodic examinations,” says an analyst.

    Specifically, the FITC report noted that the total amount involved in fraud cases in Q1 escalated from N2.9 billion to approximately N56.3 billion in Q2 of this year.

    The report also revealed that during the second quarter under review,fraudulent activities were carried out through various channels, including ATMs, online platforms like web and mobile banking, bank branches, and point-of-sale (POS) terminals.
    Among instruments used, card fraud recorded a significant decrease, declining by 47.66%. from 21,469 in Q1 to 11,237 in Q2.
    In contrast, fraudulent activity involving cheques and cash increased by 36.67% and 9.09%, respectively, with cheques surging from 30 cases in Q1 to 41 cases in Q2, while the use of cash rose from 209 in the first quarter of 2024 to 228 in the second quarter of 2024.

    Further analysis of the data shows a significant rise in the amount lost across all channels, except for mobile fraud, which recorded a decline.

    In terms of magnitude, losses through bank branch-related channels rose by 31,497%, to a value of N42.2 billion in Q2 from N133.9 million in Q1 2024.

    Additionally, computer/web frauds also saw a monumental increase of 1,560%, with losses growing from N24 million to N400.8 million.
    However, there was no indication of the amount lost due to ATM-related fraud.

    Further advising the financial institutions on ways to curb the menace, FITC said,

    “Access controls should also be strengthened by limiting access to settlement files to only a small, vetted group of authorized personnel given the appropriate clearance and are regularly trained on the latest security protocols.

    “The implementation of multi-factor authentication (MFA) and role-based access controls (RBAC) can aid the reduction of the risk of unauthorized changes to settlement files.”

     

     

     

  • Financial Infractions: Banks in trouble as EFCC beams searchlight on executives

    Financial Infractions: Banks in trouble as EFCC beams searchlight on executives

    Due to financial infractions in the banking sector, the Economic and Financial Crimes Commission (EFCC) has said bank executives are complicit in aiding money laundering in the country, adding that it would commence prosecution soon.

    Speaking at the 17th annual conference of the Chartered Institute Bankers of Nigeria, the Chairman of the EFCC, Ola Olukoyede said the commission will soon start prosecution of bank executives involved in corruption.

    According to him, findings revealed complicity in money laundering, illegal forex sales and trading among bank officials.

    While calling on the CIBN to step up its regulatory functions to guard against fraud, the EFCC boss said major financial fraud were conducted through the nation’s banking system.

    The commission recently urged the National Assembly (NASS) to enact a law which supports the whistle-blower policy of the government.

    Olukayode who made the call at the Nigerian Bar Association (NBA) conference in Lagos, noted that once the law is enacted, it will make it mandatory for law enforcement agencies to protect the whistle-blowers.

    The EFCC chairman also called on lawyers across the country to always observe due diligence in their practices.

    This, according to him, is necessary for them to know the background of their clients so as not to run foul of the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations.

    He said, “As lawyers, we are supposed to hold a position of trust in our professional conduct. While we try to comply with international laws and regulations, we should also do what is right for ourselves to protect the sanctity of our profession, which is very key.

    Even a part of the money laundering Act that we have evaluated doesn’t stop me from enforcing the regulations of the EFCC Act and other financial laws in Nigeria.”

  • Naira Stabilization Effort: CBN releases $876.26M to support currency

    Naira Stabilization Effort: CBN releases $876.26M to support currency

    The Central Bank of Nigeria (CBN) has sold $876.26 million to end users through 26 banks in an effort to stabilize the declining naira.

     

    In a circular issued on Wednesday, the CBN explained that this measure aims to address the pressure on the naira caused by increased seasonal demand from summer tourism and businesses seeking foreign currency to import goods into the nation.

     

    The circular revealed that a total of $1.18 billion in bids were submitted by 32 authorized dealer banks. Of these, $876.26 million in bids from 26 banks were approved, while $313.69 million in bids from six banks were disqualified. Disqualifications occurred because four banks submitted bids after the 3:00 PM cutoff time, two banks failed to use the required bid template, and some bids contained unverifiable or incorrect Forms A and M on the Trade Portal.

     

    The CBN set a cut-off rate of N1495 per US dollar for the Retail Dutch Auction. Detailed results and approved bids will be published on the CBN’s website to ensure transparency.

     

    Settlement for the approved bids is scheduled for Thursday, August 8, 2024. This sale is part of the CBN’s efforts to manage growing foreign exchange demand, which has been putting increasing pressure on the naira’s exchange rate.

  • Day 2 protests fresh updates: Banks,Lagos Alaba, Ladipo, Computer Village, remain shut

    Day 2 protests fresh updates: Banks,Lagos Alaba, Ladipo, Computer Village, remain shut

    As the the nationwide protests across the country continues to rage on, traders in most Lagos markets might have taken to just sit and watch.

    The situation in Tradefair complex is almost same for Alaba, Ladipo, Computer Village and others remain sealed.

    Cities like Lagos, Port Harcourt in Rivers State, and Benin City in Edo State among others, the protests have continued as the demonstrators demand for the betterment of the harsh economy.

    In Lagos State, the protesters gathered in Ojota. Security operatives were on the ground to ensure a hitch-free exercise.

    The state’s Commissioner for Information Gbenga Omotosho addressed them and assured them that the government would address their demands.

    It was a similar situation in Port Harcourt. While residents of many areas in the city continued their daily activities, protesters marched from the Pleasure Park and camped in front of the Federal Secretariat.

    These were later addressed by police authorities.

    Abuja – hundreds of protesters converged at the Berger Roundabout. But police operatives fired teargas to disperse the demonstrators. They later reconvened at the Moshood Abiola Stadium.

    Neighbouring Kaduna is, however, relatively calm with no signs of protesters on the streets.

    The first day of the protest was largely peaceful across the 36 states and the FCT.

    However, in states like Kano, Kaduna, Katsina, Borno, Kebbi, Yobe, Niger, Katsina and others, there was violence, killings, and looting, prompting the governments to impose curfews on the state.

    Days before the protests, calls for the demonstrations had reached a crescendo, especially on social media.

    Young Nigerians, battered by the economic hardship that has seen the naira greatly devalued and the cost of essential items beyond the reach of millions, urged the government to restore the subsidy on petroleum and address other issues raised.

    Imo: The sit home was followed as major markets and streets were deserted.

  • Global Microsoft outage hits airlines, banks and media

    Global Microsoft outage hits airlines, banks and media

    Businesses including banks, airlines, telecommunications companies, TV and radio broadcasters, and supermarkets have been taken offline after blue screen of death error screens were seen on Windows workstations across the globe.

    Users on the subreddit for cyber security firm Crowdstrike reported issues in India, the United States and New Zealand.

    Major US Airlines Ground All Flights Over ‘Communication Issue’: FAA
    Major US air carriers including Delta, United and American Airlines grounded all flights early on Friday over a communication issue, according to the Federal Aviation Administration.

    “All… flights regardless of destination” were grounded due to the “communication issues”, the FAA said in a notice to airlines.

    Equities sank Friday as hopes for US interest rate cuts were offset by uncertainty over the US presidential election and worries about China’s economy, while technical disruptions delayed London’s open as a widespread outage hit global computer systems.

    Investors were already on edge after a report said the White House was considering a crackdown on firms supplying chip technology to Beijing, and following Donald Trump’s call for Taiwan to pay Washington for help defending itself against China.

    Markets have been enjoying a healthy run-up as Federal Reserve officials have lined up in recent days to suggest they are ready to begin reducing rates.

    Data Thursday provided fresh room for the central bank to act, with initial jobless claims rising more than expected last week.

    However, the tech sector — which has led the surge in stocks this year — has taken a hefty hit after the report of the warning from the White House over supplying China and Trump’s remarks about Taiwan, home to some of the world’s biggest chip producers.

    There is also growing uncertainty over who will run against Trump in November, as calls for President Joe Biden to step aside continue to grow following a series of gaffes and a poor debate that have raised questions about his health.

    The New York Times cited several people close to Biden as saying they believe he has begun to accept that he may not be able to win and may have to drop out, with one quoted as saying: “Reality is setting in.”

    Former president Barack Obama has reportedly told allies Biden should “seriously consider the viability of his candidacy”, The Washington Post said.

    While a Trump win is seen as positive for equities owing to likely tax cuts and corporate deregulation, there are worries about his plans to impose huge tariffs on Chinese imports — and those from elsewhere — which many say could fuel inflation again.

    A closely watched meeting of China’s leaders in Beijing this week provided nothing concrete by way of supporting the world’s number two economy.

    The Third Plenum, which meets twice a decade to decide key policies, saw few policy announcements, with state news agency Xinhua saying they had agreed to “prevent and resolve risks in key areas such as real estate, (and) local government debt”.

    They also vowed to “actively expand domestic demand” days after data this week revealed retail sales — a gauge of consumption — rose far less than expected in June.

    Economists at HSBC said: “The communique’s emphasis on ‘opening up as a distinctive feature of China’s modernisation’ is worth noting. We expect the government to prioritise reforms that will facilitate foreign investment.

    They pointed to persistent cross-border outflows, which are weighing on the yuan, and noted that the currency would likely remain under pressure owing to the big difference in US and Chinese interest rates, which makes it harder to attract investors.

    “With the (yuan’s) yield disadvantage likely to stay wide for longer, China needs more opening-up and market-oriented policies to attract or retain foreign investment.

    “This may help reduce imbalance in cross-border flows, and thus alleviate (yuan) depreciation pressure.”

    Shares in Hong Kong fell owing to a lack of policy detail, though Shanghai eked out a gain. There were also losses in Tokyo, Sydney, Seoul, Singapore, Mumbai, Bangkok, Taipei, Wellington and Jakarta.

    Paris and Frankfurt fell while London’s FTSE 100 retreated after opening late having been hit by technical issues, with services around the world including airports, rail operators, banks, media and shops also affected.

    The disruption caused major US airlines to ground all flights over “communication issue”, the Federal Aviation Authority said.

    Tech titan Microsoft said it was taking “mitigation actions” in response to service issues.

    It was not clear if those were linked to the global outages.

    The announcement came as Australia reported a large-scale outage of IT systems, with the country’s national broadcaster, its largest international airport and a major telecommunications company reporting issues.

    Companies Worldwide
    The major outage grounded flights in the United States, derailing television broadcasts in the UK and impacting telecommunications in Australia.

    Major US air carriers including Delta, United and American Airlines grounded all flights on Friday over a communication issue, according to the Federal Aviation Administration.

    Flights were suspended at Berlin Brandenburg airport in Germany due to a “technical problem”, a spokeswoman told AFP.

    “There are delays to check-in, and flight operations had to be cancelled until 10:00 am (0800 GMT),” the spokeswoman said, adding that she could not say when they would resume.

    All airports in Spain were experiencing “disruptions” from an IT outage that has hit several companies worldwide on Friday, the airport operator Aena said.

    Hong Kong’s airport also said some airlines had been affected, with its authority issuing a statement in which it linked the disruption to a Microsoft outage.

    The UK’s biggest rail operator meanwhile warned of possible train cancellations due to IT issues, while photos posted online showed large queues forming at Sydney Airport in Australia.

    “Flights are currently arriving and departing however there may be some delays throughout the evening,” a Sydney Airport spokesman said.

    “We have activated our contingency plans with our airline partners and deployed additional staff to our terminals to assist passengers.”

    Australia’s National Cyber Security Coordinator said the “large-scale technical outage” was caused by an issue with a “third-party software platform”, adding there was no information as yet to suggest hacker involvement.

    – Banks, Airports Hit –
    Sky News in the UK said the glitch had ended its morning news broadcasts, while Australian broadcaster ABC similarly reported a major “outage”.

    Some self-checkout terminals at one of Australia’s largest supermarket chains were rendered useless, displaying blue error messages.

    New Zealand media said banks and computer systems inside the country’s parliament were reporting issues.

    Australian telecommunications firm Telstra suggested the outages were caused by “global issues” plaguing software provided by Microsoft and cybersecurity company CrowdStrike.

    Microsoft said in a statement it was taking “mitigation actions” in response to service issues.

    It was not clear if those were linked to the global outages.

    “Our services are still seeing continuous improvements while we continue to take mitigation actions,” Microsoft said in a post on social media platform X.”

     

     

  • Just In : CBN opens up on Unity bank and Keystone bank license withdrawal

    Just In : CBN opens up on Unity bank and Keystone bank license withdrawal

    The Central Bank of Nigeria (CBN) has denied withdrawing the licences of Unity Bank and Keystone Bank.

    A circular, purportedly from the CBN, had been shared on social media, advising all affected customers to withdraw their money from the banks using an automated teller machine (ATM) card or transfer their funds to another bank before it is too late.

    “CBN has withdrawn the licences of Heritage Bank, Unity Bank and Keystone Bank respectively,” the circular had said.

    “All the customers affected should try and withdraw all their money there using ATM CARD Or transfer all the money to another bank now before it will be too late.

    “Please let’s circulate this information to our colleagues, family and friends. Let’s be of help to others.”

    However, in a post on X on Wednesday, CBN said it did not issue any circular announcing the withdrawal of licences of the banks.

    The CBN said the viral circular was fake and intended to mislead the public.

    On June 3, CBN announced the revocation of Heritage Bank’s licence with immediate effect.

    The regulator said the decision followed the bank’s inability to improve its financial performance.

    Following the revocation, some reports online claimed that the apex bank would terminate the licences of Unity Bank, Polaris Bank, and Keystone Bank.

    However, on June 4, CBN said the content was not authentic, adding that it has no plans to revoke the licences of the three banks.

    On June 10, CBN assured the public that the banking system and depositors’ funds were safe.