Banks Decry ‘Excessive Punitive Charge’ By CBN

Deposit Money banks under the aegis of the Association of Chief Audit Executives of Banks in Nigeria (ACAEBIN) have decried what they describe as “excessive punitive charge” by the Central Bank of Nigeria (CBN).

President of ACAEBIN Abiodun Aderoju raised the concern while addressing the CBN Governor, Godwin Emefiele, at the 35th quarterly meeting of ACAEBIN in Lagos.

He said: “In terms of penalties, we think that banks are been sanctioned with exuberant charge. In the past, we have framework for penalties. Shareholders have argued that current punitive rate does not have basis in law.”

A total of eight banks in 2015 paid a total fine of N3.323 billion for violating various rules, including late remittance of funds under the Treasury Single Account (TSA) guiding the Nigerian banking industry,

Meanwhile, an analysis of the financial statements for the year ended December, 2015 of eight banks by Daily Trust revealed that First City Monument Bank had paid a total fine of N177.09 million; Fidelity Bank, N44.5 million; Guaranty Trust Bank, N6.05 million; Sterling Bank, N13 million; United Bank for Africa, NN2.968 billion; Union Bank, N46.28 million while Wema and Zenith banks paid N8.087 million and N60.1 million respectively.

Read more at http://www.dailytrust.com.ng/news/business/banks-decry-excessive-punitive-charge-by-cbn/174551.html#C42jeEZs25Y7oFdL.99