Content
Publication of Interest Rates
Central Bank of Nigeria Public Statement dated 16th October 2009
Central Bank of Nigeria Press Statement
Publication of Un-audited accounts of Banks as at September 30, 2009
UPDATE ON REGULATORY LEGISLATION, CENTRAL BANK OF NIGERIA GUIDELINES, CENTRAL BANK OF NIGERIA CIRCULARS AND PUBLICATIONS
Please find below a list and brief summary of recent guidelines and circulars affecting the banking sector since the last update.
1. RE: PUBLICATION OF INTEREST RATES
Ref BSD/DIR/IGEN/CIR/01/023 DATED 14TH OCTOBER 2009
This circular was issued by the Central Bank of Nigeria (“CBN”) to all banks further to its earlier circular with ref no. BSD/DIR/GEN/CIR/02/019 dated January 29, 2009 directing all banks to submit to the CBN annualized deposit and lending rates and charges on a monthly bases. The CBN noted the non compliance of the banks with the instruction to render the required returns and stated that severe regulatory sanctions would be imposed henceforth on noncompliant banks including barring such banks from accessing the CBN official foreign exchange window. All banks are therefore directed to submit all monthly returns not yet forwarded including the returns for September 2009 to the designated email address. Hard copies of the returns are to be forwarded thereafter to the CBN.
2. CENTRAL BANK OF NIGERIA PUBLIC STATEMENT DATED 16TH OCTOBER 2009
A public statement was issued by the CBN to the general public further to its recent regulatory action taken in respect of Bank PHB Plc, Spring Bank Plc, Unity Bank Plc, Wema Bank Plc and Equitorial Trust Bank Limited (‘the affected banks”). The CBN noted that its actions were aimed at strengthening the financial condition of the banks and the protection of the depositors and creditors’ funds; the CBN and the management of the banks are putting measures in place to ensure that no bank fails to meet its obligations to depositors and creditors. The CBN further affirmed that it would fully repay any foreign/corresponding bank obligations which might be defaulted on by any of the affected banks. On a final note, the CBN assured the public of the safety of the banks and reiterated its commitment to ensuring the stability of the banking sector, the relevant corresponding banks and other interested stakeholders are free to contact the Director of Banking Supervision Department of the CBN for any enquiry or clarification.
3. CENTRAL BANK OF NIGERIA PRESS STATEMENT
A press statement was issued by the CBN to the general public further to a story it had noted in the Guardian newspaper of 22nd October 2009 which stated that the CBN had directed the commercial banks to place a lid on the loans they offer airlines in the country. The CBN stated that no such instruction had been issued to commercial banks. The CBN also stated that being a regulatory institution, it does not interfere with issues pertaining to loan processing which are the responsibility of the management and board of the commercial banks. The CBN therefore urged the general public and all stakeholders in the aviation industry to disregard the story.
4. PUBLICATION OF UN-AUDITED ACCOUNTS OF BANKS AS AT SEPTEMBER 30, 2009
Ref: BSD/DIR/GEN/CIR/03/024 DATED 26TH OCTOBER 2009
This circular was issued by the CBN to all banks further to the conclusion of the special examination on the deposit money banks in Nigeria. Banks are required to recognize the examiners’ loan loss provision and fully provide for same in their accounts made up to September 30, 2009. The banks are to adopt a prescribed format attached to the circular and ensure that their unaudited financial statements as at September 30, 2009 are published on or before October 31, 2009. Banks which have already published their September 2009 unaudited accounts are required to republish the account in line with the prescribed format.
Aluko & Oyebode
29th October 2009
