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...For a better society... Monday, July 19 2004 Vol 17 No.131 News Editorial Opinion Labour Politics Sports Features Columnists Arts/Entertaiments Business Money/Market Energy Alaba Market Interview Balogun, FCMB boss, seeks easy access to bonds KENNETH MADUEKE DEPUTY managing director of First City Monument Bank (FCMB), Mr. Ladi Balogun, has made a case for capital market operators to create a liquid bond market that would allow investors easy access to sale and purchase of bonds. Mr. Balogun who stated this in an exclusive interview with Daily Champion noted that the move would encourage the development of bond market in Nigeria. He said with a liquid and vibrant bond market, one who buys a bond and does not want to hold it till maturity, can find somebody who is ready to take it from him without asking for too much of a discount. According to him, "I think a number of other things could be done in terms of financial institutions coming together and putting some of their liquidity aside to be able to trade." He said though a number of large banks could do this, but the regulatory environment must encourage then to actively operate in the bond market. On mergers and acquisitions , he said the reason why banks seem to have problems is not that they have failed to fuse or that they have inadequate capital. "I think the cause of merger or consolidation would be necessary for institutions that may have been mismanaged or others whose strategies have not been effective and therefore, are not making enough money to sustain their scale of operations", he said. Mr. Balogun underscored the need for Nigeria to be competitive in manufacturing so as to attract bank credits to the sector. The uncompetitive nature of the manufacturing sector, he said, explained why upon the excess liquidity often experienced in the financial system, banks still shy away to extend such capital to the average manufacturer. He called for adequate funding of such initiatives as the Bank of Industry (BoI) so as to ensure provision of short-term respite to the real sector. � 2004 @ Champion Newspapers Limited (All Right Reserved). Powered By dnetsystems.net dnet�

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