Banks move to limit over-the-counter withdrawals to N10,000
Mon Jun 13, 2016 01:05:pm Business
3.5K By sosa hills
A proposal to limit the over the counter cash withdrawal by bank customers to N10,000 has been tabled before the Central Bank of Nigeria (CBN).
The Sub-committee on Payments Systems and Infrastructure of the Bankers Committee last week sent the proposal to the CBN.
The proposal was presented at the committee's meeting but it is not clear whether it was considered.
The CBN is expected to "give feedback on the request".
Deposits taken by banks declined by N1.029 trillion between April 2015 and April 2016, a Central Bank of Nigeria (CBN) report has said.
Besides, more customers are finding their loans difficult to service, the report said.
A report presented by CBN Deputy Governor (Economic Policy) Dr. Sarah Alade to last week's Bankers' Committee meeting in Abuja attributed the reduction in deposits to the Treasury Single Account (TSA).
She said the poor loan servicing resulted in the increase of non- performing loans (NPLs) to a ratio of 10.1 per cent over and above the CBN prudential limit of five per cent as at end April.
The CBN Deputy Governor also told members of the Committee that total deposits in the banks declined by N1.029 trillion from April 2015 to April 2016. According to her, "the decrease in deposits were largely due to the introduction of the Treasury Single Account in the system."
A State of the Economy' document of the apex bank presented to the Bankers' Committee in Abuja, last Thursday, showed that unaudited Profit Before Tax of banks for the period ended April 2016 indicated a decrease from N222 billion in April last year to N198 billion, representing a 10.8 per cent or N24 billion decrease.
"The decline was driven largely by a decrease in both interest and non-interests income which decline by 6 per cent or N50 billion and 54 per cent of N259 billion, respectively," the document read.
The Sub-committee on Payments Systems and Infrastructure of the Bankers Committee last week sent the proposal to the CBN.
The proposal was presented at the committee's meeting but it is not clear whether it was considered.
The CBN is expected to "give feedback on the request".
Deposits taken by banks declined by N1.029 trillion between April 2015 and April 2016, a Central Bank of Nigeria (CBN) report has said.
Besides, more customers are finding their loans difficult to service, the report said.
A report presented by CBN Deputy Governor (Economic Policy) Dr. Sarah Alade to last week's Bankers' Committee meeting in Abuja attributed the reduction in deposits to the Treasury Single Account (TSA).
She said the poor loan servicing resulted in the increase of non- performing loans (NPLs) to a ratio of 10.1 per cent over and above the CBN prudential limit of five per cent as at end April.
The CBN Deputy Governor also told members of the Committee that total deposits in the banks declined by N1.029 trillion from April 2015 to April 2016. According to her, "the decrease in deposits were largely due to the introduction of the Treasury Single Account in the system."
A State of the Economy' document of the apex bank presented to the Bankers' Committee in Abuja, last Thursday, showed that unaudited Profit Before Tax of banks for the period ended April 2016 indicated a decrease from N222 billion in April last year to N198 billion, representing a 10.8 per cent or N24 billion decrease.
"The decline was driven largely by a decrease in both interest and non-interests income which decline by 6 per cent or N50 billion and 54 per cent of N259 billion, respectively," the document read.
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