Why Two Prominent Banks Will Get Sanctioned This Week

Two prominent banks will face sanctions this week for circumventing the Presidential directive on the Treasury Single Account (TSA).
It was gathered on Saturday that the CBN was considering either a hefty financial sanction, suspension or removal of the CEOs, and the dissolution of the board of directors for the banks.
It was revealed that one of the banks is being sanctioned for the concealment of over N37 billion from the account of the Nigerian National Petroleum Corporation (NNPC) while the second bank is yet to return over N100 billion belonging to NNPC despite warnings by CBN Director of Banking Supervision, Mrs. Tokunbo Martins, in several letters to the banks and admonition by the Central Bank Governor, Mr. Godwin Emefiele, through the Bankers’ Committee that banks who still hold Federal Government’s funds will face severe sanctions.
About N1.2trillion had been withdrawn from the banking system into the CBN rather than an expected N1.5 trillion.
To reflate the banking system however, the CBN reduced the Cash Reserve Requirement (CRR) from 31 per cent to 25 per cent, and maintained the MPR at 13 percent.