Access, Zenith Worst Hit as CBN Siezes over N7 Trillion of Customers' Deposit with Commerical Banks
- The Central Bank of Nigeria has slapped commercial banks with N7 trillion in debits from their accounts
- The money debited by the CBN belongs to customers and will be retained in the national vault unaccessible for withdrawals
- Access, Zenith banks were the worst hit as the CBN once again invokes its cash reserve ratio (CRR) policy
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Nigerian commercial banks are once again forced to count their losses as the Central Bank of Nigeria (CBN) forced banks to give up a substantial part of customers their customers' deposits.
Banks use the money in deposit accounts to make loans to other people or businesses. In return, the bank receives interest payments on those loans from borrowers.
According to data gathered from ten commercial banks' financial statements, the CBN removed a whopping N7.02 trillion of customer deposits from bank accounts and kept it in its vault.
Source: Getty Images
The deposits kept with CBN will not be available for banks to use in their day-to-day operations.
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The banks include Access Bank Plc, Guaranty Trust Bank (GTBank), United Bank for Africa (UBA) Plc, FCMB Group and Sterling Bank Plc.
The others are Union Bank of Nigeria Plc, Stanbic IBTC Holdings Plc, Fidelity Bank Plc, and Zenith Bank Plc.
Why does CBN keep a percentage of customers' deposits?
The CBN conducts this exercise using its Cash reserve ratio (CRR) policy, which was introduced in 2019, requiring banks to retain 27.5 percent of total customer deposits.
Godwin Emefiele in the last Monetary Policy meeting noted that the use of CRR is important in its fight against inflation, ThisDay reports
Breakdown of how much was removed from banks accounts by CBN
- Access Bank- N1.47trillion
- Zenith Bank - N1.25trillion
- GTBank - N953 billion
- UBA- N915.15billion
- Union Bank - N454.8billion
- Stanbic IBTC- N423.18billion
- Fidelity Bank - N686.1billion
- Wema Bank - N313.8billion
- FCMB Group - N309.63billion
- Sterling Bank - N243.87billion
Naira to crash to N600 per dollar this season as eNaira app’s massive downloads continue
Meanwhile, Legit.ng has reported that while the e-Naira is seeing massive and impressive downloads, the actual Naira is eroding in the official market.
On Monday, December 6, the actual Naira closed at N415 at the official Investors and Exports window.
The eNaira has seen commendable adoption after it was launched in October this year. But experts are not sure if those downloading the app are using it or keeping it for future use or for fun.
Source: Legit.ng
