CBN receives 3,890 complaints against banks, others in six months

The Central Bank of Nigeria (CBN) has revealed that it received and resolved a total of 3,890 complaints against banks and other financial institutions in the first six months of this year.

The data is contained in the half-year economic report for 2018 released by the apex bank revealed that 1,439 of the complaints were banks while the remaining 2,451 complaints were for other financial institutions operating in the country.

This compared with the preceding period’s figure where a total of 2,411 complaints were received for both banks and other financial intuitions with 1,141 of such complaints for banks and the remaining 1,270 received and resolved for other financial institutions in the corresponding period of 2017.

The report disclosed that compliance examination of 21 banks revealed 100 per cent compliance in respect of outward telegraph/SWIFT, savings account and current accounts maintenance charges, and validation of refunds.

Also, lower levels of compliance were said to have been recorded on the implementation of directives issued after the last examination, adherence to interest rate on executed offer letters, application of SMS charges and treatment of outstanding complaints.

In addition, it said the CBN sustained interventions in the inter-bank and bureaux de change (BDC) segments of the foreign exchange market, including increased frequency of sales to BDCs to ensure liquidity and stability in the market and abolished commission charges on invisible foreign exchange transactions.

During the review period, the Bank signed a three-year bilateral currency swap agreement with the Peoples’ Bank of China (PBoC), worth 15 billion yuan (N720 billion), equivalent to $2.5 billion to boost liquidity and facilitate trade and investment.

Average exchange rate of the naira to the US dollar, at the inter-bank and BDC segments, appreciated by 0.03 and 0.5 per cent, respectively, to N305.79/$ and N362.25/$, relative to the levels in the second half of 2017.

According to the report, broad money supply (M2) grew by 2.8 per cent to N24,814.00 billion at end-June 2018, annualised to 5.6 per cent, compared with the benchmark of 10.8 per cent for fiscal 2018. The growth in M2 reflected, mainly, the significant rise in net foreign assets, which more than offset the contraction in other assets (net) and domestic credit (net) of the banking system. Reserve money, at N6,360.47 billion, fell by 1.9 per cent, compared with the 6.3 per cent decline at end-June 2017.

Narrow money supply (M1) fell by 4.2 per cent to N10,701.10 billion at end-June 2018, on account of the 14.7 per cent and 2.3 per cent decline in currency outside banks and demand deposits, respectively. Currency-in- circulation fell by 12.0 per cent to N1,900.67 billion at the end of the first half of 2018.