Home Business Central Bank of Nigeria Fines 6 Banks on NSE, 6 Others N500bn...

Central Bank of Nigeria Fines 6 Banks on NSE, 6 Others N500bn – [ FULL LIST ]

- Advertisement -

Six Deposit Money Banks (DMBs) listed on the Nigerian Stock Exchange (NSE) as well as six other lenders have been fined nearly N500 billion by the Central Bank of Nigeria (CBN) for failing to meet the 60 percent loan to deposit ratio before Monday, September 30, 2019.

The apex bank had in July 2019 directed all banks in the country to give 60 percent of their total deposits as loans to customers, threatening to fine any company that fails to comply with this.

- Advertisement -

AlltechNG reports that the central bank came up with this loan policy to stimulate economic growth by promoting lending to the real sector of the economy.

After the deadline on Monday, the apex bank released another circular, raising the LDR to 65 percent and gave the lenders till December 31, 2019 to meet up or be further sanctioned.

The CBN, in an approved debit instruction, took the sum of N499.1 billion from 12 financial institutions that failed to meet the requirements before the deadline this week and from what AlltechNG gathered, six of them are quoted firms.

These banks are First City Monument Bank (FCMB), which was sanctioned N14,371,064,742; First Bank of Nigeria, a flagship subsidiary of FBN Holdings Plc, was fined N74,668,880,480; Guaranty Trust Bank (GTBank) was sanctioned N25,147,933,628; Jaiz Bank got a fine of N7,525,165,552; United Bank for Africa (UBA) got a fine of N99,676,181,916; while Zenith Bank received the highest sanction of N135,629,337,625.

Other lenders also punished by the CBN were Citibank, which was asked to pay N100,743,055, 321; FBNQuest Merchant Bank was requested to pay N2,697,456,144; Keystone Bank got a fine of N4,162,938,879; Rand Merchant Bank received a fine of N2,823,177,399; Standard Chartered Bank was asked to pay N30,027,137,984; while SunTrust Bank received a fine of N1,703,205,427.

According to the CBN, the 12 affected lenders will lose the money at source from their Cash Reserve Requirement (CRR) domiciled with it (CBN). The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.

Technology is making life more meaningful, improves productivity... We are tech lovers...


Please enter your comment!
Please enter your name here

Must Read

FG sets aside $1.61 billion for 24 hour power supply – TCN

The Managing Director, Transmission Company of Nigeria, Alhaji Usman Gur says the Federal Government in collaboration with international donor agencies has set aside over...

NDIC pays N116 billion liquidation dividends

The Nigeria Deposit Insurance Corporation (NDIC), has paid depositors, creditors and shareholders of failed banks the sum of N 116.258 billion as Liquidation Dividends. The...

SMEDAN trains teachers in Imo on entrepreneurship skills, economic enhancement

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) has explained that entrepreneurship training for teachers in the country was meant to shift...

Riders permit not national drivers license – FRCN

Corps Marshal, Dr Boboye OyeyemiOwing to the growing rate at which tricycle and motorcycle operators mistake Riders Permit issued in their respective states for...

Pound Sterling drops as Boris Johnson faces battle to pass Brexit bill

Sterling fell Friday as investors fret over Boris Johnson’s chances of pushing his Brexit deal through parliament, while Asian markets were mostly down after...