Zenith, UBA, others suffer N917.5bn in new CRR debits

October 24, 2020
11 Views

Zenith Bank, GTBank, UBA, Access Bank and First Bank of Nigeria topped the list of banks debited by the Central Bank of Nigeria to the tune of N917.5bn in new CRR debits in the last week of October.

From the data, Zenith Bank topped the list with N285 billion followed by UBA with N160 billion. The rest of the FUGAZ, Access, FBN, and GTB were debited N140 billion, N95 billion, and GTB N55 billion respectively. The FUGAZ also suffered a N1.9 trillion debit in CRR sequesters in the second quarter of 2020 (April – June) alone.

Nigeria’s central bank has since 2019 debited Nigerian banks a chunk of their deposits as part of a mutually inclusive cash reserve requirement (CRR) and Loan to Deposit Ratio policy that is targeted at coercing banks to lend more to the private sector.

CBN under the leadership of Godwin Emefiele has deployed several heterodox policies as it strives to stimulate the economy and manage the exchange rate crisis in the absence of strong fiscal support. Interest rates on fixed deposits and money market instruments have fallen to single digits despite the galloping inflation rate.

Last month, the CBN monetary policy committee admitted it was no longer combating inflation but will direct its policies towards stimulating lending to the private sector hoping this will spur local production.

This policy has placed banks in the crosshairs with the Apex bank exposing them to CRR debits if they cannot use customer deposits to spur lending.

CBN now holds a total of N6.57 trillion in CRR debits from the nation’s top 5 banks a whopping 43% higher than the N4.58 trillion held in March and more than double the N3.5 trillion CRR debits as of December 2020. CRR debits in the third quarter of 2020 will be revealed when banks release their results in the coming days and weeks.

You may be interested

RCCG Commissions two water projects in Bauchi communities
News
4 views
News
4 views

RCCG Commissions two water projects in Bauchi communities

Webby - November 23, 2020

/* custom css */ .tdi_75_588.td-a-rec{ text-align: center; }.tdi_75_588 .td-element-style{ z-index: -1; }.tdi_75_588.td-a-rec-img{ text-align: left; }.tdi_75_588.td-a-rec-img img{ margin: 0 auto 0…

APC says PDP rattled by visit of its governors to Goodluck Johnathan
News
8 views
News
8 views

APC says PDP rattled by visit of its governors to Goodluck Johnathan

Webby - November 23, 2020

/* custom css */ .tdi_75_b6b.td-a-rec{ text-align: center; }.tdi_75_b6b .td-element-style{ z-index: -1; }.tdi_75_b6b.td-a-rec-img{ text-align: left; }.tdi_75_b6b.td-a-rec-img img{ margin: 0 auto 0…

APC Governors’ Visit To Jonathan Affirms Nigeria is Better With PDP
News
3 views
News
3 views

APC Governors’ Visit To Jonathan Affirms Nigeria is Better With PDP

Webby - November 23, 2020

/* custom css */ .tdi_75_c50.td-a-rec{ text-align: center; }.tdi_75_c50 .td-element-style{ z-index: -1; }.tdi_75_c50.td-a-rec-img{ text-align: left; }.tdi_75_c50.td-a-rec-img img{ margin: 0 auto 0…

Leave a Comment

Your email address will not be published.