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Nairaland Forum / Nairaland / General / Business / CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks (582 Views)
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CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by Alennsar(f): 6:57pm On Jul 04, 2020 |
The Central Bank of Nigeria (CBN) deducted N118 billion from Access Bank, GTBank, Zenith Bank and 11 other Nigerian banks. The debit was for Cash Reserve Ratio (CRR) compliance - the N118 billion is an amount deducted from customers deposits with banks which the lenders are expected to leave retained with the CBN. The CBN has continued to withdraw the amount despite complains that it is affecting the availability of liquidity in the banking industry. It was learnt that liquidity is now below N100 billion according to Nairametrics. The CRR was hiked by 5% to 27.5% by the CBN Monetary Policy Committee (MPC) in January. It was reported that the CBN made the debit in order to prevent banks from coming to the forex market with much cash, as large demand for forex could put pressure on the CBN. The huge deduction is leaving the banks cash-strapped - the latest N118 billion deduction was made on July 3, 2020. The following are the banks: Access Bank Plc: N3 billion Guaranty Trust Bank Plc: N15 billion First Bank of Nigeria Ltd: N12.4 billion Ecobank Nigeria: N7 billion Sterling Bank Plc: N5 billion Fidelity Bank Plc: N11 billion Union Bank of Nigeria Plc: N12.5 billion First City Monument Bank Ltd: N10 billion CitiBank Nigeria Ltd: N10.2 billion Stanbic IBTC Bank: N15 billion Zenith Bank Plc: N7 billion Wema Bank Plc: N3 billion Titan Trust Bank: N2.5 billion Rand Merchant Bank Nigeria Ltd: N4 billion A source who was quoted by Nairametrics had complained that, “These are huge amounts that are leaving the banking sector. It’s a squeeze on the banks. A bank like First Bank, for instance, has about N1.4 trillion in CRR with the Central Bank. And there is Zenith Bank with equally as much as N1.5 trillion. These are monies that banks can potentially put in loans at 52% at 30%, or even put in money market instruments at maybe 10%. "So, for a shareholder of these banks, this CRR debits are impairing the banks’ ability to increase their earnings because now are not able to use the funds that are legitimately theirs to create money for their shareholders. And the question is that under what framework is the Central Bank choosing to take people’s money?” |
Re: CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by olaric(m): 6:58pm On Jul 04, 2020 |
They are only great at deducting our money, but not effective when it comes to using the money for the good of all in this country. |
Re: CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by Vision4God: 6:59pm On Jul 04, 2020 |
Just imagine. |
Re: CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by RedPhoenix: 7:03pm On Jul 04, 2020 |
They won't give loans that are readily accessible or help banks to push out such loans but would keep making all sorts of dodgy deductions, increase VATs on low and medium income earner and will never hike taxes on hanks declaring 100 billion turnover per annum Nigeria is a miserable existence. Spits |
Re: CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by EmekaBlue(m): 7:06pm On Jul 04, 2020 |
Hopeless wicked FG using CBN with all those yeye grammer up there to justify their stealing. I don't blame them but our useless banks especially GTB who went to donate to FG which has given them this idea. I noticed the deductions but no time to go complain. This present administration is just cashing out on a cruise level. What's now the difference between them and Hushpuppi. 2 Likes |
Re: CBN Deducts Customers Deposits From Access Bank, Gtbank, 12 Other Banks by Nobody: 10:34pm On Dec 30, 2020 |
Alennsar: The CRR is not a means used by the CBN to take people's money. It is a form of monetary policy used to regulate the money supply in the economy and consequently to reduce inflation. All these banks know when they are not conforming with the CBN regulatory policy on CRR, so they cannot complain when it adjusts their balances. Besides, the money still belongs to the depositors (apart from the fiat portion). Please leave economics to the economists. |
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