“No More Zero Balance”: As UBA, 4 Others Fail To Meet N65/N100 Rules, CBN Wants Banks To Upgrade ATMs For Loans

The Central Bank of Nigeria has proposed the upgrade of ATMs to offer loan services and not only cash disbursement Also, Access Holdings, UBA Zenith Bank, and other banks fell short of the CBN’s 65% loan-to-deposit ratio requirement in 2022.

CBN wants the ATMs upgraded and implemented before 2025 to enhance credit access.

The Central Bank of Nigeria (CBN) has proposed a solution to enhancing credit accessibility within the country.

It suggests that banks upgrade their Automated Teller Machines (ATMs) to provide loan services. Ads by CBN wants banks to upgrade ATMs to give loans.

The innovative step was captured in CBN’s Payments System Vision 2025, published on its website Part of the document reads:

“ATMs should be optimised to perform all other financial services outside cash – credit scoring, loans disbursement, and to be available in remote areas.”

When implemented it is expected to go a long way in helping banks customer’s in dire need but low account balance to have access to quick cash.

It will further help banks meet CBN loan requirements. According to recent ThisDay report five major Nigerian banks failed to meet the CBN’s loan-to-deposit ratio (LDR) of 65% during the 2022 financial year.

The loan-to-deposit ratio stipulates that banks must allocate N65 as loans for every N100 they have as deposits, ensuring a healthy flow of credit into the economy.

Related News:

• Buhari-Osinbajo: Presidential Communications Team Unveil Site To View 8-Year Administration Achievements
• Arrest Peter Obi, Anyone Calling For Interim Government, Apapa Charges IGP
• OGUN: Assembly Workers Set To Embark On Strike Over Unpaid Salaries, Gives Abiodun 21-Day Deadline

Banks failed to meet CBN LDR rules Access Holdings Plc, Guaranty Trust Holdings Company Plc (GTCO), United Bank for Africa Plc (UBA), Zenith Bank Plc, Sterling Bank, and Stanbic IBTC fell short of this requirement, as reported by ThisDay.

Digging into the specifics, Access Holdings recorded a 58.70% LDR in 2022, while Zenith Bank Plc’s LDR stood at 51.6% in the same year.

GTCO closed 2022 with a 39.81% LDR, while UBA’s LDR decreased to 34.87% in 2022 from 38.17% in 2021. In 2022, Sterling Bank reported a 54.10% LDR, and the FCMB group completed the list of banks that fell short of the 65% target with a 60.30%

CBN sets deadline Meanwhile, in another report, the Central Bank of Nigeria (CBN )has issued a 30-day ultimatum to Nigerian banks to close bank accounts without BVN.

According to the apex bank, the directive aims to promote safer, more reliable, and more efficient banking and payment systems.

Data from the NIBSS showed that 57.39 million customers’ accounts had been linked to their BVNs as of April 8, out of over 190 million bank accounts.