CBN Debits First Bank, GTB, UBA, Zenith, 6 Others N1.62trn

For failing to meet the 32.5% Cash Reserve Ratio (CRR) threshold, the Central Bank of Nigeria (CBN) has debited about 10 banks N1.62 trillion in the first six months of 2023. Zenit Bank, UBA, GTBank, FBN Holdings, FCMB, Fidelity, and Stanbic IBTC Holding are among the banks debited by the apex bank. Others are Wema Bank, Sterling, and Unity banks.

Banks running short of cash with CBN CRR is the minimum amount commercial and merchant banks are expected to keep with the CBN from customer deposits. It carries no interest and is not available for use by the banks in their daily transactions.

ThisDay reports that the banks’ results and accounts for the period ended June 30, 2023, revealed that the 10 banks’ compulsory reserve deposit with the apex bank in the 2022 financial year stood at N9.11 trillion compared with the N7.49 trillion as of June 30, 2023.

CBN debited Zenith Bank N580.49 billion as of June 30, 2023, at N2.25 trillion from N1.67 trillion in the 2022 financial year. UBA was debited about N356.37 billion by CBN in the first six months of 2023 to N1.64 trillion from N1.28 trillion reported in the 2022 financial year. GTBank maintained its CRR with CBN at N1.22 trillion, representing an N208.5 billion increase from N1.01 trillion in 2022.

FBN Holdings added N199.91 billion to its CRR with CBN in the period under review. GTBank explained that the pressure from competition and the need to keep the mandatory CRR debits led the Group to maintain an average liquidity ratio of 36.6% during the period under review.

First Bank’s CRR with CBN stood at N1.76 trillion at the end of June 2023 from N1.56 trillion in 2022. Unity Bank reported about N3.66 billion CRR with CBN to N69.05 billion as of June 30, 2023, from N72.71 billion in the bank’s 2022 financial statement.