CBN debits banks N459.7 billion infraction on CRR
The Central Bank of Nigeria (CBN) has debited twenty-six banks, including merchant banks, to the tune of N459.7 billion for failure to meet their Cash Reserve Ratio (CRR), obligations.
Stakeholders in the banking sector were saddened by the development which took place last Thursday.
The latest CRR debits are coming barely one month after a lot of banks were collectively debited to the tune of N1.4 trillion for the same reason in April. Between then and now, a lot of other minor CRR debits have occurred.
During the CBN’s Monetary Policy Committee (MPC) meeting that was held last month, committee members voted to retain CRR rate at 27.5%. The rate was increased in January this year from 5% to its current level after the apex bank cited inflationary pressure concerns. What this means, therefore, is that Nigerian banks are required to keep 27.5% of their deposits as CRR with the Central Bank of Nigeria.
A banker who pleaded anonitity said the development in addition to similar policies by the CBN, has left many banks cash-strapped and unable to pursue various profitable ventures.