CBN Penalizes Zenith, FCMB, 11 Others for Not Having Enough Cash in Reserve

CBN Penalizes Zenith, FCMB, 11 Others for Not Having Enough Cash in Reserve

  • The Central Bank of Nigeria has wielded the big stick for not maintaining the required cash reserve of 27.5 per cent
  • The apex bank slammed the defaulting banks with various fines, ranging from N40 billion to N2 billion
  • The bank took similar action in December when it hit the banks with a N170 billion fine for failing to meet up

The Central Bank of Nigeria (CBN) has issued a punitive measure against 13 banks for not meeting up to the required 27.5 per cent Cash Requirement obligation.

The apex bank cumulatively debited the 14 banks N356.1 billion for their failure to keep a minimum bank balance.

CBN governor, Godwin Emefiele
CBN governor, Godwin Emefiele Credit: PIUS AKPO
Source: Twitter

The new debit happened last Friday, January 4, 2022, according to a ThisDay report and has left many in the banking sector very angry.

Zenith, one other bank are biggest offenders

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Available data shows that Zenith bank and one of of the newest banks in Nigeria were the hardest hit while Fidelity Bank was the least debited by the CBN.

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Zenith and a new generation bank 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.

Stanbic IBTC, Union Bank and Polaris banks were debited N10 billion respectively 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 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.

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Zenith, Gtbank lead List of Nigeria's Most valuable banks in January

243 Companies Fight For CBN’s N23 Billion 100 for 100 Loan Scheme

Legit.ng has reported that About 243 companies applied for a loan scheme by the Central Bank of Nigeria (CBN).

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.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng