MPC REVIEW | NIGERIA | SEPTEMBER 2020
MPC opted for expansionary monetary policy as MPR declined to 12.5% from 13.5% Monetary Policy Committee (MPC) unanimously voted to loosen the Monetary Price Ratio (MPR) by 100bps to 12.5% and also adjusted the asymmetric corridor to +100/-700bps from +200/-500bps, while the committee left other parameters unchanged, including Liquidity Ratio at 30.00% and Credit Reserve…
Abiola AdekunlePortfolio diversification II – Correlation, a Tool in Asset Allocation
Sequel to our last article on portfolio diversification, which was an introduction to portfolio diversification. This week, we take it a step further as we look more in-depth into the math behind portfolio diversification, i.e., using correlation to achieve the objective of portfolio diversification which reduction of systematic risk. How to Check the Correlation between…
What if your Cheque Bounces?
One of the popular forms of collateral, lending companies demand from borrowers is a post-dated cheque. Post-dated cheques serve as one of the most popular forms of security to guarantee the risk of loan default. A post-dated cheque contains the total amount to be paid by the borrower; capital and accrued interest as well as…
adminPortfolio Diversification
Diversification can be neatly summed up as “don’t put all your eggs in one basket”, although this statement provides little guidance on the practical implication of the role diversification plays in an investor’s portfolio and offers no insight into how a diversified portfolio is actually created. The idea is that if one investment loses money,…
Don’t Live To Impress
In today’s world, many are spending money just to impress when they know they can’t really afford it, it could be your rent, car, vacation, aso-ebi, gifts or lifestyle. Peer pressure is high but don’t get carried away, live life on your own terms. Let what others are doing motivate you but don’t live a…
Loan Application Checklist
So, you have thought about it and you believe the best course of action on the endeavor you are about to pursue is to take out a loan. You have also considered your options and like almost every other Nigerian, you know that the bank will not be able to help you here. As you…