AMCON receives N126b from commercial banks in Q1 2022

Assets Management Corporation of Nigeria (AMCON) has received N125.9 billion from commercial banks listed on the Nigerian Exchange Limited (NGX), as part of the financial sector resolution funds in the first quarter of 2022.

Data obtained from the financial reports of the listed banks indicate that AMCON’s bank charges increased by 29.5 per cent from N97.18 billion paid in the corresponding period of 2021 to N125.9 billion during the same period under review.

The banks are Access Bank, First City Monument Bank (FCMB), Fidelity Bank, First Bank of Nigeria, Guaranty Trust Bank, Stanbic IBTC Sterling Bank, United Bank for Africa (UBA), Union Bank, WEMA Bank and Zenith Bank Plc.

The Trumpet learnt the increase in AMCON’s charges were attributed to the impressive rise in the total assets of the banks, just as the aggregate total assets of the banks stood at N61.23 trillion in the first quarter of 2022, representing a 5.29 per cent increase compared to the beginning of the year.

In the previous year, the total assets of the 12 banks had increased by N8.75 trillion largely due to increased customer loans.

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The funds is part of the requirement of the AMCON (Amended) Act 2915, which mandated banks to make contributions to a fund established by the AMCON Acteffective from January 1, 2013.

Banks are required to contribute an equivalent of 0.5 per cent of their total assets plus 0.5 per cent of all contingent assets as of the preceding year- end to AMCON sinking fund in line with existing guidelines.

This contribution is for a period of 10 years from 2013, it non-refundable and does not represent any ownership interest.

A cursory look at the data shows that the 12 banks have paid in excess of N1 trillion to AMCON between January 2017 and March 2022. It is worth nothing that the charge is sometimes expressed as sector resolution fund, AMCON Resolution Fund AMCON sinking fund or part of regulatory costs.

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