Menu Close

CAR Test: CBN clarifies banks remain resilient, suspends charges on cash deposits till April 2024  

*The Central Bank of Nigeria affirms the Nigerian banking industry remains resilient as ‘key financial soundness indicators were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023’

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has clarified insinuations noted in reports in some media outlets, suggesting that some licensed Deposit Money Banks (DMBs) had failed the Bank’s Capital Adequacy Ratio (CAR) for international authorisation.

ConsumerConnect reports the banking sector regulator, in a statement issued Monday, December 11, 2023, however, said that “the Nigerian banking industry remains resilient as key financial soundness indicators were within the regulatory thresholds as captured in the CBN’s most recent Economic Report of 2023.”

Mrs. Sidi Ali Hakama, Ag. Director, Corporate Communications at CBN, in the statement noted: “Furthermore, the CBN is engaging with various critical stakeholders to sustain the level of confidence in the Nigerian financial sector.

“We, therefore, appeal to Nigerians to disregard the media reports listing banks as failing the Capital Adequacy Ratio (CAR) stress test for international authorisation as the report did not emanate from the Central Bank of Nigeria (CBN).”

Regulator suspends charges on all cash deposits above N500,000

In a related development, the Central Bank of Nigeria has suspended charges on cash deposits above N500,000 till April 30, 2024.

Adetona Adedeji, Acting Director of Supervision at the Bank, who stated this Monday, said, in 2019, the CBN had declared that it would begin to levy bank customers making cash deposits and withdrawals as part of its efforts at reducing cash in circulation.

It also said that commercial banks should charge five percent processing fees for withdrawals and three percent processing fees for lodgments of amounts above N3,000,000.

However, in its new directive, the CBN has directed the Deposits Money Banks to accept all cash deposits from the public without any charges going forward.

Kindly Share This Story

Kindly share this story