- De-marketing was popular during the days of fledging banking industry, over-crowded with 91players most of which were weak. It was then assuming that it was due to their fragile capital base which was then between N500million and N1billion depending on whether it was commercial or merchant bank.
- Banking consolidation of 2004 brought strength to the industry with minimum capital base of N25billion. Today, each of the top six banks First Bank, Union Bank, UBA, Intercontinental, Zenith and Oceanic bank has over N200billion has capital base. There asset base are also that large at over N1trillion each.
3. With this size and strength one would have expected the industry to be more matured and disciplined. However, De-marketing re-surfaced in 2006
4. To check the trend, the CBN had issued a circular in 2006, against the spreading of false rumours among the operators.
5. According to the circular reference BSD/08/2006, the CBN warned against what it called, “the unethical and unprofessional practice of de-marketing colleagues/other banks in the industry by spreading rumours.”
- In 2008, another round of de-marketing began towards the fourth quarter. This time around the targets were mainly amongst the top 10 banks.
- Again CBN intervened, summoning the banks CEOs admonishing them while securing their commitment not to resort to unethical practices in competition.
- Also, The Chartered Institute of Bankers of Nigeria (CIBN) mobilised the bank CEOs to address the issue, and sanctions were spelt out for offenders for the first time against any bank or bank staff engaged in de-marketing.
- Sanctions ranged from, N10million fine to outright dismissal of stall and the blacklisting of offending banks.
- Again this did not deter the banks as the faceless, perpetrations resurfaced early this year with much more vicious strategy.
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