The Central Bank of Nigeria (CBN) has fined twelve Nigerian banks for breaching the regulator’s directive on lending to the real sector of the economy. The CBN fined the banks N499.1 billion, with the funds debited from their Cash Reserve Requirement (CRR) with the CBN.
The banks had been warned by CBN Governor, Godwin Emefiele, of a penalty if they failed to attain the LDR by ending of September 2019. The CBN Director, Banking Supervision, Ahmad Abdullahi, had also stated in July that, “Failure to meet the above minimum LDR by the specified date shall result in levy or additional Cash Reserve Requirement equal to 50 per cent of the lending shortfall of the target.”
List of banks affected: The following banks couldn’t maintain the LDR and they were fined accordingly:
- 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 (GTBank) (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 (UBA) (N99,676,181,916); and
- Zenith Bank (N135,629,337,625).