On some of my recent columns I have been encouraging enterprises, real estate developers, local governments, the central government (mainly through privatization and implementing legislative actions) to use the local capital market to raise long term capital through equity and debt instruments for the purpose of financing their growth and development, improving the welfare of our people, and achieving financial and economic empowerment through ownership of companies and projects in some key sectors of our economy.
For commercial and community banks (either privately owned, publicly owned or those owned by the government), capital inadequacy or lack of long term funding sources or because of maturity mismatch challenges have been some of the key reasons hindering their lending capacity to key productive sectors of our economy, especially those with a long term view, such as real estate development, agriculture sector, manufacturing and projects that requires long term financing .
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