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Panic Withdrawals: Stanbic IBTC Bank, Standard Chartered Bank, Citibank Hit




Panic withdrawals have been the order of the day at some financial institutions since the Central Bank of Nigeria (CBN), debited their accounts.

Last week, the CBN announced that it was sanctioning four financial institutions for aiding and abetting telecommunication company MTN Nigeria in the remittance of foreign exchange with irregular certificates of capital importation (CCIs).

The apex bank frowned at the transaction by the banks, as it considered it a breach of foreign exchange regulation.

Stanbic IBTC Bank, Standard Chartered Bank, Citibank and Diamond Bank were sanctioned.

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The CBN debited Standard Chartered Bank to the tune of N 2.470 billion, while Stanbic IBTC Bank was debited to the tune of N 1. 886 billion. On its part, Citibank was debited N 1. 265 billion.

With the total debit across the four banks running into N 5. 621 billion, depositors at the individual banks have been thrown into panic. Depositors from the banks have thus been rushing to various branches to withdraw their money.

The situation has not been helped by a confirmation of the debit by the CBN.

Dated September 6, Stanbic IBTC via its parent company, Stanbic IBTC Holding Plc confirmed the debit in a letter  signed by its Group Company Secretary,  Chidi Okezie; and  Acting Head, Marketing and Communications, Bridget Oyefeso-Odulami. The letter read: “ Following our  earlier announcement to the Nigerian Stock Exchange on 30 August 2018, in respect of the  penalty of N 1.886 billion imposed by the Central Bank of Nigeria on our banking subsidiary-Stanbic IBTC Bank Plc-in relation to remittance of foreign exchange on the basis of  certain capital importation  certificate issued by MTN Nigeria Communications Limited, we write to update the NSE that the CBN has debited the account of our banking subsidiary with the CBN for the full amount of the above stated fine advised to the bank.”

Stanbic IBTC however seemed to have anticipated the panic withdrawals, as it had earlier tried to control such reactions. In a statement, the bank was quoted to have said the debit would not affect the seamless transactions with the company.


However, same cant be said for Standard Chartered Bank which was the highest hammered bank by the CBN, having been debited with N 2.470 billion. Since news of the debit hit town, it depositors have been heading to the banks.

When our reporter did a random visit to the branches of the banks hit by the CBN hammer,  a more than usual turnout of customers was witnessed, and this could not be isolated from the fine by the apex financial institution.

As the days go by, more and more withdrawals are expected to be made, as depositors try to get the assurance that their money is safe.

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