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12 banks to part with N500b as CBN wields the hammer on loan-to-deposit ratio defaulters



Only 57.4m of Nigeria's 200m people have BVN – CBN

The Central Bank of Nigeria (CBN) has imposed a whooping N499 billion fine on 12 Nigerian banks for failing to comply with its directive to lend at least 60 percent of deposits to customers before the end of September.

The sum will be taken away from their accounts and put in zero interest-yielding cash reserves with the CBN as the penalty for not complying with the directive.

The affected banks include Zenith bank, Citi bank, First Bank of Nigeria, FBN Quest Merchant bank, First City Monument Bank (FCMB), Guaranty Trust bank, Jaiz bank, Rand and Merchant Bank (RMB) and Keystone bank.

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Others are Keystone bank, Standard Chartered, Sun Trust and United Bank for Africa (UBA).

The worst hit, however, is Zenith bank, which will see N135.6 billion idle away in regulatory cash reserves.

Citi bank, the second most affected, will also see its N100.7 billion put into idle regulatory reserves while UBA will be part with N99.7 billion.

All three banks account for 67 percent of the total penalty.

First Bank will be debited with N74.7 billion while its merchant banking arm will part with N2.7 billion.

Standard Chartered will lose N30 billion to the CBN reserve while GTB and FCMB will give up N25 billion and N14 billion respectively.

Merchant banks, Jaiz and RMB will hands off N7.5 billion and N2.8 billion respectively.

Keystone bank will be debited with N4.2 billion, while digital bank, Sun Trust, will give up N1.7 billion to the regulatory reserves.

Bank shares were down 5 percent Wednesday as investors reacted negatively to the penalties slapped by the CBN.

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