Five banks lose N312m to CBN’s contraventions in 2014

The shareholders’ funds of five commercial banks dipped by N312 million in 2014, following fines they paid to Central Bank of Nigeria (CBN) for contravening the Banks and Other Financial Institutions Act.

Investigations showed that they are GT Bank, Zenith Bank, First City Monument Bank (FCMB), Access Bank and Sterling Bank.

A breakdown of the figure as contained in the banks’ annual reports showed that Access Bank paid the highest fine of N184 million for various contraventions in the period under review.

The bank was fined N184 million for not obtaining approval from CBN for the additions to investment in properties of N5.15 billion, non-compliance to implementation of the recommendations of a financial services provider, PricewaterhouseCoopers.

It was also fined for contravening the CBN’s foreign exchange manual and weaknesses noted in internal control and know your customer procedures.

A further breakdown of the fine indicated that Access Bank contravened the minimum documentation in the credit file and reporting of public sector deposit in line with CBN guidelines.