Banks Deposits Hit N2.41tn As CBN ‘Removes’ Savings Account Limit on Access, GTB, Zenith, Others

• Commercial banks and merchant banks (discount house) has increased their deposit with the CBN
• This is thanks to excess liquidity fueled by injections from the Federation Account Allocation Committee FAAC
• There are 24 commercial banks in Nigerian and six merchant banks providing financial services to customers

Nigeria’s Deposit Money Banks (DMBs) and merchant banks in the past 13 days deposited a whooping N2.41 trillion with the Central Bank of Nigeria (CBN).

The deposits were done through the CBN’s Standing Deposit Facility (SDF).

A Standing Deposit Facility is an overnight deposit facility that allows banks to park excess liquidity (cash) and earn interest.

Leadership reported that the CBN removed the N2 billion daily limit on funds placed at the SDF window.

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Since then, the report added that the net deposits of banks at the CBN window have soared remarkably.

However, the CBN circular states that excess funds deposited that are more than N2 billion will not get interest payments.

More deposit by bank with CBN

ThisDay reports that aside from the interest accruable from the deposits, banks’ rush to deposit cash with the CBN is in a bid to abide by the apex bank’s regulation on Capital Adequacy Ratio (CAR)

CAR provides a quick idea of whether a bank has enough funds to cover losses and remain solvent under difficult financial circumstances.

Over the years, the CBN has maintained that solid patronage at the SDF confirms healthier liquidity in the banking system, stressing that banks and merchant banks were searching for better yields.

10 banks deposit over N150bn in taxes to government account

Legit.ng earlier reported ten commercial banks operating in the country contributed over N155 billion in income tax payments to the coffers of the federal government of Nigeria for 2022.

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The amount marks a significant increase of 33.50% from the N116.54 billion paid by the banks during the previous fiscal year, as reported by their financial statements submitted to the Nigerian exchange.

The ten banks that made the list include Zenith Bank, GTCO, UBA, Stanbic IBTC Holdings, FCMB, Fidelity Bank, Sterling Bank, Wema Bank, Unity Bank, and Jaiz Bank.

Source: Legit.ng