The Chief Executive Officer/Managing Director of Rand Merchant Bank Nigeria Limited, Michael Larbie, has said the steady decline in inflation rate will boost investments and the diversification of the nation’s economy.
“We are positive about investments in the country. The steady decline in inflation should ultimately lead to a reduction in interest rates and, consequently, increase the potential for investments in a variety of sectors, thereby aiding the diversification of the economy,” Larbie said in a telephone interview.
The nation’s inflation rate declined to 12.48 per cent in April from 13.34 per cent in March.
Statistics from the Central Bank of Nigeria show a consistent decline in inflation rate over the past 15 months.
Larbie stated that a steady and consistent decline in inflation could lead to a stronger economic growth and a more stable currency, adding that healthy competition should be embraced by banks to facilitate economic growth.
Larbie said it was his belief that there was room for multiple players to fulfil the needs of the broader market and economy.
“We need to embrace competition. To promote economic growth and development, Nigeria requires significant amounts of capital, which a few banks alone cannot provide. Each bank has a limit as to the amount of funding it can supply both to a country and to different sectors; it is, therefore, wise to diversify exposure,” he added.
He said the RMB preferred to partner other financial services players to the benefit of their clients.
According to him, RMB is an innovative and solutions-driven bank that believes in building long-term sustainable relationships with its clients by providing them with innovative ideas and solutions to suit their unique circumstance.
He said competition should exist among commercial, merchant and retail banks, as well as capital market operators.