Tag power cbn ready to sanction banks over intervention fund
It seems like you're referring to a news article or a statement made by the Central Bank of Nigeria (CBN). Here's a possible summary:
The Central Bank of Nigeria (CBN) has threatened to sanction banks that fail to provide the required intervention fund to support the country's economy. The CBN Governor, Godwin Emefiele, stated that the bank is ready to take action against banks that do not meet the required threshold for the intervention fund.
The intervention fund is a mechanism used by the CBN to provide liquidity to the financial system and support economic growth. The fund is used to provide loans to banks at a lower interest rate, which enables them to lend to customers at a lower rate.
The CBN has set a minimum threshold of 27.5% for the intervention fund, which means that banks must maintain a minimum of 27.5% of their total deposits as a reserve. However, some banks have failed to meet this threshold, which has raised concerns about their ability to provide adequate liquidity to the financial system.
The CBN has given banks a deadline to meet the required threshold, and has warned that any bank that fails to do so will be sanctioned. The sanctions could include fines, penalties, or even the revocation of the bank's operating license.
The CBN's move is aimed at ensuring that banks maintain a healthy level of liquidity and are able to provide adequate credit to the economy. The bank believes that a healthy banking system is essential for economic growth and stability.
It's worth noting that the CBN's decision to sanction banks that fail to meet the intervention fund threshold is a normal part of its regulatory role. The bank has the power to regulate and supervise the banking system to ensure that it operates in a safe and sound manner.
Overall, the CBN's move is aimed at promoting a healthy and stable banking system, which is essential for economic growth and development in Nigeria.