CBN SOFT PEDALS ON TREASURY ACCOUNTS

It appears the Central Bank of Nigeria has soft pedalled on its recent policy to impose heavy fines on some banks for failing to transfer government agency treasury accounts with them by the September 15 deadline earlier given.
According to a circular from the Director Other Financial Institutions dated November 12 and signed by Ahmad Abdullahi all such institutions under his watch were warned to do so immediately or risk being sanctioned.
The circular was addressed to chairmen, non-executive directors, top management  and external auditors of primary mortgage banks and development finance finance institutions.
This is hoping that in the same vein the CBN will take it easy with deposit taking banks fined recently for not transferring the same treasury accounts  to deadline.
Somehow the amount imposed as fine and within a few days after the deadline looked too punitive to be healthy for the banking industry.
More importantly, placed alongside recent similarly heavy fines imposed by other oversight institutions like NAFDAC and NCC it was beginning to look as if such institutions are beginning to compete for who will contribute the most to the newly discovered gold mine from President Buhari could keep his noble campaign promises.
We did draw attention to the fact that if some of the promises were implemented without a strong economic base they can not be sustained.

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