Omodel Adigun
Of the 2,476 trillion nairas deducted as a money reserve requirement (CRR) of depositholder banks through its regulator, the Central Bank of Nigeria (CBN), since January, Sterling Bank Plc accounted for 215.5 billion naira.
According to the report, Sterling Bank states that the amount of deposits of its customers held lately through CBN is 215.5 billion naira, which “represents mandatory reserve deposits and cannot be used in the bank’s day-to-day operations.” The CRR is the amount CBN raises on bank accounts in accordance with its financial policy objective of mandatory keeping money on behalf of banks. The quantity should not be delivered to the banks. Under RRC policy, banks are required to maintain 27.5% of all deposits on the CBN. It was 22.5% last year, but was over 27.5% at the Monetary Policy Committee (MPC) assembly last January. In July, the umbrella bank debited 216 billion naras from banks as a component of the naira measures. In June, 460 billion banks’ debited cards failed to meet CRR’s targets last month. This happened slightly a month after many banks were jointly charged for the same explanation as to why in April, 400 billion naira. Some banks have already predicted a drop in earnings this year for this explanation. For example, Fidelity Bank warned in April that 2020 earnings would fall by 15%.
Fitch Ratings also predicted a 20% effect on Nigerian banks’ income this year due to CRR policy and currency scarcity (forex).
He said Nigerian banks would face emerging loan prices, as CBN-to-naira measures would put pressure on banks already affected by the COVID-19 pandemic and oil value shocks.
Omodel Adigun about the 2.476 million naives deducted as a coin reservation requirement (CRR) of the depositArray ..
The Nigerian Diary
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