How does Banks gets to Benefit?
In addition to the obvious loan difference, transaction commissions and other ancillary fees, banks are also playing a role in building a better economic system.
Therefore, the next time you encounter such an advertisement, please tell the next person. Let us work together to build a better economy.
CBN is releasing cheap funds to strategic sectors of the economy, with a view to revitalizing the economy and potentially saving the country from an imminent recession.
How did the Intervention comes about?
If, like me, you follow Bank of Nigeria on social media networks, then like you must have see some colorful advertisements to tell the world that they have lower -interest loans to fight COVID-19 and are expected to restart economic.
However, one thing you must pay attention to is that during these broadcasts, regardless of the brand, the highlights of the low-interest rates, terms and target industries-are the same.
Well, because banks are all promoting the same products; CBN intervention funds.
Because CBN believes that by combining these funds with the necessary policy and regulatory support, they can quickly track the development of the Nigerian economy through these departments to improve the Nigerian economy. This move will create employment opportunities, diversify the income base, provide input for the industrial sector, and ultimately increase foreign exchange income.
This is the whole purpose of CBN.
What does it mean?
CBN, wishing to regain economic boundaries that have already been lost as a result of the COVID-19 pandemic, is releasing cheap funds into strategic sectors of the economy to hopefully resume the economy and probably save the nation from the coming recession.
On April 14, 2020, in a CBN governor’s press release entitled “Transforming the COVID-19 tragedy into an opportunity for a new Nigeria,” he highlighted a three-phase approach to fighting a pandemic, covering immediate, short-term and medium deadlines of 0-3 months, 0- 12 months and 0-3 years. Critical for these phases are the various aspects of the economy that need to be addressed at every stage. These key sectors include the health sector, production and infrastructure, while others include agriculture and energy.