Public sector deposit: CBN exempts AMCON, BoI, others

CBN Governor, Sanusi Lamido Sanusi

The Central Bank of Nigeria, CBN, said that deposits from some government institutions are excluded from the reporting of public sector deposits in line with its circular to banks operating in the country.

The institutions are: Asset Management Corporation of Nigeria (AMCON), Bank of Industry (BoI), Nigerian Export-Import Bank (NEXIM),Federal Mortgage Bank of Nigeria (FMBN), Bank of Agriculture (BoA), ,Bank of Infrastructure, Closed Pension Funds belonging to government institutions, state pension Boards, governments staff associations and cooperative societies.

The CBN states, “Following the issuance of our circular ref: BSD/DIR/GEN/LAB/06/034 and dated 25th July 2013 on the review of the Cash Reserve Requirement for Deposit Money Banks( DMBs), it has become necessary to provide further guidance on the reporting requirements.

“It would be recalled that in our circular under reference, DMBs were required to report government deposits as additional memorandum items in their Monthly Bank Return/Daily Bank Return (MBR 300/DBR 300) on e-FASS. Subsequent to the above, all DMBs are requested to note that, for the purposes of reporting in accordance with the provisions of the above circular, public sector deposits should include all Federal Government MDAs and companies, state government MDAs and companies as well as local government MDAs and their companies.

“Furthermore, for the avoidance of doubts, deposits from the following institutions should be regarded as public sector for this purpose: NNPC Joint Venture accounts; Sovereign Investment Funds; Government MDAs/Companies’ Collection Accounts such as: Customs, FIRS, etc; Pilgrim welfare Board; All accounts belonging to Government Universities.”

Also, the CBN have berated banks for not disclosing credit granted to their board members and employees.

The apex bank disclosed this in a circular signed by Director of Banking Supervision, Mrs Tokunbo Martins, titled “Reporting of All Credit Facilities of N1 million and Above in the Credit of Risk Management System”.

According to her, the Central Bank of Nigeria has observed with dismay that banks do not report the credit facilities availed to their board members and staff in the Credit Risk Management System (CRMS). For the avoidance of doubt, the CRMS, which is a central database for credit information on borrowers, established by the CBN Act No. 24 of 1991 [Sections 28 and 52] as amended made it mandatory for all banks to render returns to the CRMS in respect of all credit facilities of N1 million and above. Thus, the credit facilities availed to board members and staff of banks are not exempted.”
- The Vanguard