The Central Bank of Nigeria has deducted a total of N838.8 billion from 15 banks as CRR allowance

Godwin Emefiele, Governor of the Central Bank of Nigeria
  • CBN deducts N838.8 billion from 15 banks as CRR deductions allowance 
  • The information was disclosed to Nairametrics anonymously
  • The 32.5% CRR threshold requirement stipulated by the CBN itself was met 

The Central Bank of Nigeria has deducted the combined sum of N838.82 billion from several Nigerian banks. This is a result of the CBN’s initiative to mop up liquidity from the Nigerian economy.

The financial information publication, Nairametrics, gathered this information, from a reliable source, as the apex bank does not officially release the list of banks it debits.

However, the bank made it clear in its last monetary policy meeting that it would debit banks as a part of its efforts to curb the increase in the money supply.

The money deducted by the Central bank met the minimum requirement of 32.5% CRR threshold stipulated by it. The bank had earlier raised the CRR to a minimum of 32.5% from 27.5% while retaining the liquidity ratio at 30%.

The increase in CRR is a necessary evil at this point in the country’s economic history owing to the high levels of inflation currently being experienced.

Godwin Emefiele, the CBN governor, noted during the MOC meeting that the bank will be implementing aggressive cash reserve requirement measures by mopping up liquidity from commercial banks by Thursday, 29th September 2022.

This is a part of its plan to use the twin monetary approach of interest rate and CRR to combat the rising rate of inflation in the country.

According to Nairametrics, the banks deducted from include; Zenith, Access, UBA, FCMB, Fidelity, FBN, Union, Keystone, Titan, Polaris, Nova, Unity, Heritage, FBN Mortgage, and Suntrust Bank.

The money deducted from each bank is Zenith Bank(N270 billion) and Access Bank(N205 billion). UBA (N133.7 billion), FCMB(N90 billion), First Bank (N33 billion), Union Bank (N28.7 billion), Keystone Bank (N13.8 billion), Titan Bank (N11.6 billion), Polaris Bank (N10 billion), Nova (N5.5 billion), Unity Bank (N1 billion), Heritage Bank (N470 million). FBN Microfinance Bank (N460 million), and Suntrust Bank (N92 million).

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