CBN punishes 13 banks for lack of cash in reserve
The Central Bank of Nigeria (CBN) has issued a punitive measure against 13 banks for not meeting up to the required 27.5 percent Cash Requirement obligation.
The apex bank cumulatively debited the 13 banks a sum of N356.1 billion for their failure to keep a minimum bank balance.
The new debit happened last Friday, January 4, 2022, according to a ThisDay report, and has left many in the banking sector very angry.
Available data shows that Zenith bank and Providus banks were the hardest hit while Fidelity Bank was the least debited by the CBN.
Zenith and Providus were debited N170 billion. FCMB got punished with N39 billion, First Bank saw N27 billion removed from its account, GT Bank N20 billion while Citibank had N12 billion removed by the CBN.
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Stanbic IBTC, Union Bank, and Polaris banks were debited N10 billion each while Keystone was penalised with N6 billion, Ecobank N5 billion, sterling Bank, N3.6 billion, and Fidelity and Nova Merchant banks were debited N2 billion each.
This action by the CBN last happened in December when the banks were cumulatively debited N175 billion.
The CBN has issued a stern warning to banks not to starve Nigerians of funds, especially during the festive periods. The banks flouted the order resulting in them being inflicted with heavy fines.
In the end, the Central Bank of Nigeria (CBN) said about 28 companies whose projects pleased the bank’s conditions for ‘100 for 100 Policy for Production and Productivity.’
The apex bank said that this happened after 243 firms submitted applications with projects valued at N321.06bn for the 100 loan scheme.