CRR: CBN fines UBA N25bn

The United for Africa, popular known as UBA has ran into trouble with the the Central Bank of Nigeria for failing to meet its 27.5 per cent Cash Reserve Requirement (CRR) obligation.

The CRR rule empowers the Central Bank to hold up to 27.5 per cent of customer deposits held by commercial banks, restricting the banks from accessing the money.

Cash Reserve Ratio was set as 27.5 % in Apr 2021, UBA, however, to meet this obligation, hence the punishment by the apex bank.

IDOMA VOICE reports the debit, which occurred last Friday, has left many stakeholders in the banking sector very upset as the apex bank recently suspended debiting banks for not meeting the requirement.

CBN data showed that Zenith bank was the most debited bank on November 17, 2021, followed by Access Bank Plc and United bank for Africa Plc (UBA).

The breakdown of some affected banks revealed that, Zenith bank-N90 billion, Access bank-N25 billion, N500 million, FCMB Limited- N5 billion, and Stanbic Bank- N4 billion, Polaris- N3billion and UBA- N25billion.

The CBN had on December 8, 2021 debited seven banks and two merchant banks a sum of N29.6 billion.