Concerns rise on banks’ CRR as COVID-19 impact on businesses bites — Business — The Guardian Nigeria News – Nigeria and World News

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Amid the devastating effects of COVID-19 on businesses, commercial banks currently have the issues of Cash Reserve Ratio (CRR) obligations to grapple with.

The Central Bank of Nigeria (CBN) now debits Deposit Money Banks (DMBs) for not meeting CRR requirements.For instance, the apex bank had in June, debited 26 banks, including merchant banks to the tune of N459.7 billion for failure to meet their CRR requirements.

CRR is a mandatory part of a bank’s total deposit expressed in percentage, which a bank must maintain with the apex bank at all times, and subject to change at the discretion of the regulator.

Top five banks; First Bank, UBA, GT Bank, Access Bank, and Zenith Bank suffered a N1.9trillion debits in CRR sequester in the second quarter, between April and June 2020.

The banks have a total customer deposit (excluding subsidiary balances) of N18.26 trillion, thus CRR debits represented about 35.9 per cent of their total customer deposits as of June.

The development has…



Source: Guardian Newspaper