The Central Bank of Nigeria (CBN) has fined 12 commercial banks N299.1 billion for breaching its lending guidelines, The Nation reports. In a CBN circular directed that all banks to maintain the Loan Deposit Ration (LDR) to a minimum of 60 percent by September 30, 2019. This was in a bid to sustain economic growth through investment in the real sector.
CBN Governor, Godwin Emefiele said failure of banks to comply with the lending guidelines will result in penalties.
“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,” CBN Director, Banking Supervision, Ahmad Abdullahi, said in the July 3 circular.
The affected banks include Zenith Bank (N135,629,337,625), Citibank (N100,743,055, 321), UBA (N99,676,181,916), First Bank (N74,668,880,480), Standard Chartered Bank (N30,027,137,984), Guaranty Trust Bank (N25, 147, 933, 628).
Others are FCMB (N14, 371,064, 742), Jaiz Bank (N7, 525, 165,552), Keystone Bank (N4, 162, 938, 879), Rand Merchant Bank (N2, 823,177,399), FBNQuest Merchant Bank (N2, 697,456,144), and SunTrust Bank (N1,703,205,427).
According to the apex bank, it will deduct the money from the bank's Cash Reserve Requirement (CRR).
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