Abuja - 14 banks may have landed at the receiving end of the Cash Reserve Requirement (CRR) harmonisation policy announced last week by the Monetary Policy Committee of Central Bank of Nigeria (CBN), Vanguard reports.
About nine banks are benefiting from the policy change.
CRR simply specifies the proportion of a bank’s deposit that must be reserved, thus specifying the limit of cash banks can lend out of its total deposits.
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For this purpose banks’ deposits are divided into public sector and private sector with 75 percent reserve imposed on public sector deposits, while 20 percent was imposed on private sector deposits up until last week.
However, MPC rose from its second quarter meeting last Tuesday harmonising the two by crashing public sector CRR to 31 percent, while hiking the private sector CRR to same level.
Read more at Vanguard
- News 24