New Telegraph

CBN Ceases Daily CRR Debits

The Central Bank of Nigeria (CBN) on Friday announced that it will cease daily Cash Reserve Requirement (CRR) debits and will adopt an update CRR mechanism that is aimed at facilitating banks’ capacity for planning, monitoring and aligning their records with it (the apex bank).

In a circular posted on its website, the CBN said that the determination of deposits subject to sterilization with it as CRR will follow two phases. Phase one involves the utilization of the incremental approach in which the extant ratios (commercial banks 32.5 % and merchant banks 10%) will be applied to increases in banks’ weekly average adjusted deposits.

The second phase involves a CRR levy of 50% of the lending shortfall will be enforced for banks that do not the minimum Loan to Deposit Ratio (LDR) as per its circular issued in September 2019.

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