CBN fines 12 banks N499bn over failure to meet LDR

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The Central Bank of Nigeria (CBN) says 12 banks have been debited N499 billion for failing to give out 60% of their deposits as loans.

The sum was debited from the cash reserve of the banks held by the CBN.

The CRR is a portion of the banks’ deposits kept with the CBN for regulatory reasons.

In July, the CBN increased the loan to deposit ratio to 60% saying: “Failure to meet the above minimum LDR by the specified date shall result in a levy of additional Cash Reserve Requirement equal to 50% of the lending shortfall of the target LDR”.

Meanwhile, the apex bank has raised the LDR to 65% and set a December deadline for banks.

According to the CBN, the newly revised LDR is informed by the noticeable growth in the level of the industry gross credit.

The LDR policy is expected to encourage lending to small businesses and reduce banks’ appetite for investing in government securities like treasury bills.

SEETHE FULLLIST OF AFFECTED BANKS BELOW:

  • Citibank – N100,743,055,321
  • First Bank of Nigeria – N74,668,880,480
  • FBNQuest Merchant Bank – N2,697,456,144
  • First City Monument Bank (FCMB) – N14,371,064,742
  • Guaranty Trust Bank – N25,147,933, 628
  • Jaiz Bank – N7,525,165,552
  • Keystone Bank – N4,162,938, 879
  • Rand Merchant Bank – N2,823,177,399
  • Standard Chartered Bank – N30,027,137,984
  • SunTrust Bank – N1,703,205,427
  • United Bank for Africa – N99,676,181,916
  • Zenith Bank – N135,629,337,625



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