Chief Kunle Folarin, a maritime expert on Tuesday credited the postponement in the take off of the proposed maritime bank to the long incubation time of speculations and scarcity of fund.
Folarin told the News Organization of Nigeria (NAN) in Lagos that since the oceanic bank would just capacity on long haul giving exercises, such subsidizing ought to get government's supporting and benefits.
In his word
``The maritime industry in specific terms is a long-term amortisation industry. In other words, it is not like a venture that will yield in two months or six months.
``The operations of the bank has to look at lending for over a long period of time, the gestation period is long.
``So, that brings the issue, why do we have problems getting a maritime bank off the ground?
``Yes, promoters of a maritime bank, if not government, will not want to tie their money down for 10 years before they recover it.
``So, if you are going into maritime activity lending, you must know that it will take two, five, ten years to amortise the lending, the funds you have disbursed.
``That brings a very special approach to it. It has to be one, the one that guarantees inflow of funds, either it is from re-payment from those who have lent money and also, it must be supported by a special government kind of privileges and so many other physical incentives.
``In other words, to encourage private institutions or private banks to lend or for the maritime bank to be lending with the view of the peculiarities of the sector that the gestation period is long, then, it must be kind of open to so many funding.''
Folarin said the sourcing for financing from the annuity trusts was restricted that could be investigated for a conceivable foundation of an oceanic bank.
He discounted the thought of swinging to contributors' trusts which, he said, was dependably on interest.
“It cannot be depositors’ money. Depositors’ money is on demand.
``You have to produce their money on demand and if the cycle of returns of money you have lent out takes two, three years, then you are going to be in a very serious problem.
``So, what is the solution? One, long-term investors must be solicited.
``Like for instance, pension funds, which probably will take about 20 years of work life before you start to ask for your money.''
He said the maritime bank was similar to some other bank; a giving
organization that was guided by the demonstrations and methods of the National Bank of Nigeria.
Folarin, then again, said that the main contrast was the bank's work-particular nature which would be focussed on oceanic or related exercises.
He said that a maritime bank must be exceptionally strict in recovering its giving all together not to exhaust the accessible stores for ventures since a solitary interest in the business was enormous
Folarin told the News Organization of Nigeria (NAN) in Lagos that since the oceanic bank would just capacity on long haul giving exercises, such subsidizing ought to get government's supporting and benefits.
In his word
``The maritime industry in specific terms is a long-term amortisation industry. In other words, it is not like a venture that will yield in two months or six months.
``The operations of the bank has to look at lending for over a long period of time, the gestation period is long.
``So, that brings the issue, why do we have problems getting a maritime bank off the ground?
``Yes, promoters of a maritime bank, if not government, will not want to tie their money down for 10 years before they recover it.
``So, if you are going into maritime activity lending, you must know that it will take two, five, ten years to amortise the lending, the funds you have disbursed.
``That brings a very special approach to it. It has to be one, the one that guarantees inflow of funds, either it is from re-payment from those who have lent money and also, it must be supported by a special government kind of privileges and so many other physical incentives.
``In other words, to encourage private institutions or private banks to lend or for the maritime bank to be lending with the view of the peculiarities of the sector that the gestation period is long, then, it must be kind of open to so many funding.''
Folarin said the sourcing for financing from the annuity trusts was restricted that could be investigated for a conceivable foundation of an oceanic bank.
He discounted the thought of swinging to contributors' trusts which, he said, was dependably on interest.
“It cannot be depositors’ money. Depositors’ money is on demand.
``You have to produce their money on demand and if the cycle of returns of money you have lent out takes two, three years, then you are going to be in a very serious problem.
``So, what is the solution? One, long-term investors must be solicited.
``Like for instance, pension funds, which probably will take about 20 years of work life before you start to ask for your money.''
He said the maritime bank was similar to some other bank; a giving
organization that was guided by the demonstrations and methods of the National Bank of Nigeria.
Folarin, then again, said that the main contrast was the bank's work-particular nature which would be focussed on oceanic or related exercises.
He said that a maritime bank must be exceptionally strict in recovering its giving all together not to exhaust the accessible stores for ventures since a solitary interest in the business was enormous